FIFO or LIFO: Which rack system to choose for your products?

The classic duel? FIFO against LIFO. Behind these acronyms are two storage philosophies that determine your supply chain efficiency. Here is how to choose the camp that will make money for your company.

1. The FIFO (First-In, First-Out): Freshness above all

The principle is simple: the first product to enter is the first one to leave. It is the preferred method for everything that has an expiration date or risks becoming obsolete quickly.
Why choose FIFO?

• Waste reduction: Ideal for food, pharmacy or cosmetics.
• Perfect rotation: You avoid that products end up "forgotten" at the bottom of an aisle.
• Easy traceability: Easier to manage batch numbers in case of a product recall.

Which rack systems for FIFO?
To apply the FIFO efficiently, we usually use dynamic racks (Pallet Flow). The pallets are loaded on one side and slide by gravity to the other side to be retrieved. Dynamic accumulation shelving is also an option of choice.

2. The LIFO (Last-In, First-Out): The art of density

Here, it’s the opposite: the last product arrived is first served. Imagine a stack of plates: you always take the one on top, so the last one laid.
Why choose LIFO?

• Maximum storage density: Since the same aisle is often used for entry and exit, many traffic lanes are eliminated.
• Homogeneous products: Perfect for building materials (bricks, sand), stable chemicals or goods with no expiration date.
• Infrastructure cost: Often less complex to implement than sophisticated gravity systems.

Which rack systems for LIFO?
The champion of LIFO is the Push-back. We push the existing pallets with the new pallet. The drive-in system (static accumulation) is also very common: the forklift literally enters the structure to deposit the goods.

The Match: Quick Comparison

Characteristic	FIFO (First in, First out)	LIFO (Last in, First out)
Type of products	Perishable, fashion, electronic	Homogeneous, non-perishable
Density	Medium to high	Very high
Stock rotation	Excellent	Low for the first units
Flagship system	Dynamic rack (gravity)	Push-back or Drive-in
Access to the pallets	Individual access facilitated	Limited access (mass storage)

How to decide? 3 questions to ask yourself

To not make a mistake with the structure, do this quick audit of your inventory:

1. Do my products have a DLC/DLUO? If so, the FIFO is mandatory.
2. Do I have many different references (SKUs)? FIFO often offers better selectivity. If you only have 3 references but in massive quantities, the LIFO will save you a lot of space.
3. What is my cost per square meter? If space costs a fortune (cold room, urban warehouse), the density of LIFO or high-density dynamic FIFO is your best ally.

The expert’s advice: Do not necessarily choose only one side. Many modern warehouses mix the two systems according to the preparation areas.