LIFO is an abbreviation for the accounting and inventory management term 'last in, first out'. 'Last in, first out' is a system for managing inventory that prioritizes and ships out new inventory before it uses up old inventory.
If your Vancouver 3PL warehouse provider uses a LIFO warehouse management system, the most recent shipment received by the warehouse will be the first product sent out for delivery.
The LIFO shipping method is an excellent option for non-perishable goods that can spend a long time in storage. Some of the industries where LIFO is most common include.
- Automotive Parts
- Clothing
- Electronics
- Sports Equipment
However, it is essential to note that LIFO warehouse management can benefit all industries, including agriculture and pharmaceutical businesses.
The Benefits of LIFO Warehouse Management
The primary benefit of LIFO is the reduction of space needed for inventory management. Instead of requiring multiple aisles and machinery to rotate old stock and stock new products, LIFO warehouse management can be done with a single warehouse aisle. As new deliveries come in, the old ones are pushed to the back, minimizing intra-warehouse movement.
LIFO also allows provides a higher-quality product to the consumer in many cases. As the newer and more updated stock is prioritized, customers are always getting the best products and latest packaging ideas that your company has to offer.
At Freight Xperts, we offer all our partners the option of FIFO or LIFO warehouse management. If you are uncertain about what choice is correct for your business, we can guide you to success.
Freight Xperts specializes in Vancouver 3PL warehouse services and trucking across North America. We specialize in Vancouver 3PL Warehousing services, full truckload and less than truckload services including dry van, temperature controlled, and flatbed, plus cross-border shipping.
Our goal is to provide the highest level of service in the most cost-effective manner possible for the warehousing and trucking of your products ranging from single pallets to full truck loads.