Warehouse strategies at a glance - which system suits your company?

An efficient warehouse strategy is important for smooth warehouse processes, short access times and economical inventory management. Modern technology and intelligent warehouse organization are only half the battle. Only clearly defined warehouse principles create a structure that can cut costs, reduce errors and optimize the flow of goods. Especially in dynamic logistics processes, whether in online retail or industrial production, the choice of the right warehouse strategy has a significant impact on a company's performance.

Why storage strategies are so important

Whether pallet racking, shelving, flow racking or an automated system, every warehouse environment requires clear rules for the storage and retrieval of goods. The storage strategy determines the order in which goods may and must be stored and retrieved. This allows optimum control of shelf life, turnover rate and space requirements. Companies that rely on defined storage principles benefit from greater stock accuracy, less spoilage and significantly improved warehouse performance.

The best-known methods include the FiFo principle, variants such as FeFo and special strategies for automated systems. Each of these storage principles has its own objective and is suitable for different goods structures.

The FiFo principle - a classic for fresh, fast and sensitive goods

The "First In - First Out" strategy is known as the FiFo principle and is one of the most common storage strategies. The goods stored first are also removed first. The FiFo principle is the standard, especially for perishable goods or products with a limited shelf life. It prevents goods from remaining on the shelf for too long, reduces write-offs and increases product safety.

In pallet racking, the FiFo principle is often supported by flow racks in which the goods automatically slide down. FiFo also ensures a clear structure and well-organized stocks in order picking areas.

LiFo and FiFo - a comparison of two warehouse strategies

LiFo works in the opposite way to FiFo, which relies on chronology. LiFo is used in companies that cannot use FiFo consistently for production-related reasons. It means: last in - first out. The last goods to be stored are the first to be removed.

LiFo is particularly suitable in warehouses where the goods are physically difficult to access or can only be stored and retrieved from one side. In block warehouses, bulk goods or stacked pallets, for example, where it is almost impossible to move older goods, this procedure is practically self-evident. At the same time, LiFo is ideal for products that have neither shelf life problems nor quality losses due to longer storage times. These include, for example, building materials, metals, assembly materials or robust spare parts whose age is irrelevant for later use and which can therefore be easily removed according to the last-in-first-out principle.

FeFo - when the expiry date is decisive

The FeFo principle (First expired - First out) is a further development of the FiFo principle. Here, the best-before date is used as a priority rather than the time of storage. This storage principle is primarily used in areas such as food production, pharmaceuticals and cosmetics.

FeFo ensures that products with the earliest expiration date are preferentially removed from storage, which contributes to product safety and the avoidance of losses.

Other storage strategies and their strengths

In addition to LiFo, FiFo and FeFo, there are other storage principles that offer advantages in certain processes:

HiFo (Highest in - First out): Expensive goods are used or removed from storage first.
LoFo (Lowest in - First out): Inexpensive goods are moved first - for example to streamline inventory.
ABC-XYZ analysis: Goods are classified according to value (ABC) and consumption regularity (XYZ) in order to optimally allocate storage space and access times.
Fast-moving/slow-moving principle: Items with a high turnover rate are placed close at hand, slow-moving items in more distant areas.
Chaotic storage: Ideal for automated systems or flexible logistics centers. Goods are stored where space is available. IT systems control the overview.

These variants supplement classic warehouse strategies if there are special requirements or the warehouse technology demands particular flexibility.

Which warehouse strategy is the right one?

The right storage strategy always depends on your products, processes and existing storage facilities. Companies that handle goods requiring refrigeration or sensitive goods can hardly avoid the FiFo principle. On the other hand, those who work with bulk goods or want to manage different batches economically may benefit from supplementary storage principles such as FeFo or HiFo.

A professional racking and storage system supports each of these strategies - from simple pallet storage to complex flow-through or automated racking systems.

If you would like to find out which storage strategy will make your company more efficient, TOPREGAL will be happy to provide you with individual and practical advice. Get in touch with us!

Warehouse Logistics