What Racks Are Used for FIFO Storage?

Key Takeaway: FIFO storage could make older stock used first, which is essential part for industries such as pharmaceutical, food and beverage, etc.

Understanding FIFO Storage Systems

FIFO (First-In, First-Out) is an inventory management method where the first items placed into storage are the first to be removed. This method is essential for industries with perishable goods, such as food and beverage, pharmaceuticals, and cosmetics. FIFO systems ensure that older inventory is used first, preventing spoilage and maintaining product quality. It improves stock rotation in an effective manner, then businesses can control their potential risk of waste.

Types of FIFO Racking Systems

Selective Pallet Rack

Description and Advantages

Selective pallet racking allows direct access to all stored pallets without moving others, making it a highly selective solution. It requires multiple aisles to accommodate this selectivity, resulting in lower storage density compared to other racking systems. The design of selective pallet racks facilitates easy retrieval of products, which is crucial for warehouses with a high turnover rate.

Applications in FIFO Storage

Selective pallet racks are ideal for warehouses needing continuous product circulation and immediate access to all items. This system is suitable for FIFO storage in environments with high turnover rates, such as food distribution centers and pharmaceutical warehouses. It ensures that older products are used first, reducing the risk of spoilage and waste.

Drive-Through Rack

Description and Advantages

Drive-through racking stores pallets on support rails attached to uprights, accessed by lift trucks driving into the system. This design offers high storage density by eliminating picking aisles but provides lower selectivity. The ability to store pallets in a deep lane setup maximizes storage space and is beneficial for operations that handle large volumes of similar products.

Applications in FIFO Storage

Drive-through racking is perfect for storing large quantities of similar products with long shelf lives, where selectivity is less critical. This type of racking is commonly used in industries such as beverage production and cold storage, where products need to be moved in large, one-time batches. The drive-through system ensures that the oldest pallets are accessed first, adhering to the FIFO principle.

Gravity Flow Systems

Description and Advantages

Gravity flow systems, including carton flow and pallet flow racks, use inclined rollers or wheels to allow products to move from the loading aisle to the picking aisle. These systems offer excellent volume utilization and can be configured in various ways, such as stand-alone systems or integrated with other racking types. Gravity flow systems provide a continuous flow of products, reducing handling time and increasing efficiency.

Applications in FIFO Storage

Gravity flow racks are ideal for materials with expiration dates and high-volume case-pick applications. They are commonly used in the food and beverage industry, pharmaceuticals, and retail distribution centers. Gravity flow systems ensure that products are always available at the picking face, minimizing the time spent replenishing stock and ensuring older products are picked first.

Advantages of FIFO Racking Systems

• High Selectivity: FIFO systems enhance warehouse productivity by allowing easy access to stored items. This selectivity is particularly beneficial for warehouses with a wide variety of SKUs, as it reduces the time needed to locate and retrieve products.
• Space Optimization: These systems improve warehouse space utilization, accommodating more inventory in a smaller area. High-density racking solutions like drive-through and gravity flow systems maximize the use of available space, reducing the need for additional storage facilities.
• Inventory Management: FIFO racking prevents inventory from becoming outdated or declining in value, ensuring quality and compliance with warranties. This is particularly important for industries dealing with perishable goods or products with expiration dates.
• Easier Tracking: Each lane is generally its own SKU, making stock tracking more efficient and visible. This organization helps warehouse staff quickly identify and access the required products, improving overall operational efficiency.

Integrating FIFO Racking with Other Systems

FIFO racking can be combined with other storage solutions, such as pallet racking and automated systems, to maximize storage space and efficiency. For instance, a combination of pallet flow and carton flow racks can create a multi-level pick module, enhancing storage density and selectivity.

Examples of Integrated Systems

In a multi-level pick module, two-deep pallet flow can be used on the ground level for faster-moving products. Two levels of carton flow can be integrated with the pallet flow for case picking of items that need replenishment closer to the 1-month range. Five levels of selective rack can be included on top for the immediate product replenishment of the carton and pallet flow. This integrated approach ensures that all products are stored efficiently and accessed according to the FIFO principle.

Factors to Consider for FIFO Storage

Product Type and Expiration Dates

Understanding the shelf life of products is crucial for FIFO storage. Items with short expiration dates require higher selectivity to ensure they are used or sold before they expire. For instance, perishable goods like dairy products and fresh produce need to be rotated regularly to maintain freshness and prevent spoilage.

Warehouse Space and Layout

The available space and layout determine the suitable FIFO system. High-density systems like drive-through and gravity flow racks are ideal for large warehouses, while selective racking suits smaller spaces. The layout should be designed to facilitate easy access to all products, minimizing the distance warehouse staff need to travel to retrieve items.

Required Selectivity and Density

Balancing selectivity and density is essential. High-density systems offer more storage but less selectivity, whereas selective systems provide immediate access but require more space. The choice of system depends on the specific needs of the operation. For example, a warehouse handling a high volume of SKUs may prioritize selectivity, while a facility storing large quantities of a few products might focus on density.

Tailoring System For Your Warehouse Excellency

Tailoring the system to specific product and throughput needs ensures optimal performance. For example, a warehouse handling a mix of high-turnover and slow-moving items might use selective pallet racks for frequently accessed products and drive-through racks for bulk storage of less frequently accessed items. This combination allows for efficient storage and retrieval, reducing handling times and improving overall productivity.

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FAQ

Q: What is FIFO storage?

A: FIFO (First-In, First-Out) storage is a method where the first items placed into storage are the first to be removed, ensuring older inventory is used before newer stock. This method helps maintain product quality and reduces waste by ensuring that older items are used or sold first.

Q: What industries benefit from FIFO systems?

A: Industries such as food and beverage, pharmaceuticals, and cosmetics benefit from FIFO systems due to the perishable nature of their products. These industries require strict inventory rotation to prevent spoilage and maintain product quality.

Q: What are the main types of FIFO racking systems?

A: The main types of FIFO racking systems are selective pallet rack, drive-through rack, and gravity flow systems. Each type offers different advantages in terms of selectivity, storage density, and ease of access.

Q: What are the advantages of FIFO racking systems?

A: FIFO racking systems offer high selectivity, improved space optimization, better inventory management, and easier stock tracking. These advantages help businesses maintain product quality, reduce waste, and improve overall operational efficiency.

Q: How can FIFO racking be integrated with other storage solutions?

A: FIFO racking can be combined with pallet racking, semi-automated, or fully automated systems to maximize storage space and efficiency. Integrated systems can be tailored to specific product and throughput needs, ensuring optimal performance and ease of access.

Q: What factors should be considered for FIFO storage?

A: Key factors to consider include product type and expiration dates, warehouse space and layout, and the required selectivity and density of the storage system. These factors help determine the most suitable FIFO racking solution for a given operation.