First In, First Out Method (FIFO): A Food Handlers' Guide to Safe Stock Rotation

Discover the key to proper FIFO food safety and learn the 5-point checklist to do it right with ease and consistency.

Ever watched food spoil in the back of your fridge while the newer items get used first? That simple oversight is the same mistake costing restaurants and food businesses thousands of dollars and putting customers at risk. Yes, First In, First Out (FIFO) is an inventory method, but it's also the difference between safety and liability in food service.

One of the most well-known food storage systems is the First-In, First-Out food storage system or FIFO for food. This storage system was designed for food businesses only to serve customers the freshest and safest dishes. As part of every food handler's food safety training, they must know what FIFO means and how to implement it properly.

That's why proper food storage is an essential undertaking for every food business. A comprehensive food storage management system such as FIFO can lead your food business to more efficient food service and protect your consumers from foodborne illnesses.

What does FIFO stand for?

FIFO stands for First-In, First-Out, a food storage system designed to use foods that have been in your kitchen the longest. The FIFO method helps food service and production companies improve stock rotation to reduce the likelihood of serving or selling food that's beyond the best before or use-by dates, and prevent unnecessary food waste.

• First-In refers to the product that has been inside the storage system the longest. Inventory items that have been delivered and accounted for are labeled and arranged according to when they entered the kitchen.
• First-Out refers to the products that kitchen teams must use at the first opportunity before new items.

FIFO focuses more on foods' shelf life and ensures that all ingredients are optimized before they even go bad and become unusable. The process also promotes a faster system for locating which foods to use next and ensures that there will be no accidents in terms of using expired ingredients.

Food storage systems such as FIFO are most useful in businesses that deal with common food items and perishable food items such as time and temperature control for safety or TCS food. These inventory items require a stricter monitoring process to ensure food safety. A comprehensive food safety management system would combine the principles of FIFO and monitoring procedures to prolong the shelf life and maximize the potential use of food ingredients.

Why is FIFO important?

Proper food storage is part of the four major food safety practices always highlighted in the food industry. When food storage is implemented correctly, the product quality, nutrition, and safety of foods are preserved for superior food service. In terms of food safety, proper storage includes the proper arrangement of products such as in a fridge, containers used, the grouping of products, and keeping foods out of the temperature danger zone.

Problems such as cross-contamination can easily be prevented with proper food storage. Additionally, food storage systems such as FIFO help secure a healthy amount of stock in your inventory and improve the natural flow of food ingredients into the kitchen and service area. The FIFO system can also help your team integrate other food safety systems such as food inventory tracking, accounting, and other back-of-house systems.

What are the advantages of FIFO?

Specifically, FIFO offers several advantages in food storage more than just organization. It is a multi-faceted system that can affect other food service areas and improve the overall efficiency of your food business. FIFO does improve not only food safety but also the quality and inventory accounting side of your food business.

• Less food waste: One of the main advantages of using the FIFO storage system is that it helps ensure no food goes to waste. This is assured by creating a system that trains food handlers to prioritize using foods with shorter shelf life or those registered earlier to your kitchen inventory. In using such a system, foods will be used even before they expire.
• Cost-saving: When food ingredients are optimized, and no to minimal waste is generated due to expired and unused ingredients, your food business can save up on food costs. Additionally, using only the freshest ingredients can significantly reduce the risk of causing foodborne illnesses. The FIFO method can also help protect your food business from food safety complaints, leading to more significant problems such as lawsuits and loss of customer satisfaction and confidence.
• Food security and a more stable inventory: The FIFO method can help food businesses create a stable system in terms of stocks and handle ingredient cost fluctuations. Better management of food stocks can prolong their use and help your team withstand abrupt price increases. FIFO is also a vital tool when it comes to integrating with inventory costing methods.
• More efficient workflow: Using the FIFO system helps improve the kitchen workflow and flow of inventory. As part of the system company plan, foods are organized in groups such as TCS food, ready-to-eat food, highly perishable ones, and other categories. Additionally, the system requires food handlers to put products with the nearest expiration dates at places that are nearest within reach for easier access.
• Always serve fresh foods: When your team implements the FIFO system constantly, you can rest easy that all foods served in your food business are fresh and safe from contamination. This advantage promotes the quality of your food products and can attract customers to dine in your food restaurant more frequently.
• Better inventory management: The FIFO system includes proper documentation of foods and raw materials that enter your food business. This includes monitoring the number of batches and collective use-by dates as well as the number of products. The food storage system can help you track your inventory balance and determine when a particular raw material is almost out of stock and can signal food handlers to replenish ingredients.
• Compliance with food safety laws: The implementation of FIFO in your food business helps in ensuring that food safety laws and regulations in terms of food storage are always followed. Regulations such as proper organization of foods, disposal of expired ingredients, and hygienic handling of raw foods can be satisfied when using FIFO.

What are the disadvantages of FIFO?

Despite the many advantages of using FIFO, early implementation stages can be difficult for some. At this stage, food safety teams may find it hard to start in terms of monitoring, consistency, and expertise of the system. Specifically, the FIFO system can show disadvantages such as the following:

• Can sometimes be time-consuming: The implementation of the FIFO system in the food business can consume a lot of your employees' time. Use-by dates must always be accurately recorded in addition to monitoring. This means that every product must be inspected prior to grouping. After which, every individual unit is stacked and organized based on expiration. Newly assigned food handlers may require a lot of time just to find and record every piece of information.
• Risk of errors: The initial lack of a system when implementing FIFO can lead to a lot of errors. FIFO requires precision and accuracy. All food handlers must be oriented in using the system as mistakes can cause your team a lot of setbacks. For example, failure to properly record use-by dates can lead to products being forgotten and expired even before use. Additionally, improperly stacking foods can lead to the same problem and can even reduce productivity when food handlers need to remove all materials in front just to access foods at the back.
• The system requires training: While the FIFO system is a simple and intuitive program, its implementation and consistent use must be properly communicated through a series of food safety training programs. Such training programs will include the significance of the system, how to use it, corrective actions involved and monitoring procedures.

The FIFO system is an integral part of a food safety management system (FSMS). It can help reduce the burden of managing your inventory and complying with food safety regulations. Despite this, the transition that it takes for implementation can become a challenge. You can help your food employees understand the system more and use an intuitive monitoring system by using a digital Food Safety Management System solution.

How do you use the FIFO method to restock food?

To use the FIFO method to restock food, place newly received items behind those with earlier dates to ensure the oldest items are used first to minimize spoilage and waste.

Here are 5 simple steps food handlers can take to maintain FIFO compliance:

FIFO checklist

1. Record all food materials as part of the inventory
2. Group similar products in terms of category and use-by dates.
3. Monitor existing materials and remove all food products past their use-by dates.
4. Organize foods placing those with the soonest expiration dates at the nearest access.
5. Place newer items at the back.

Making the FIFO system work requires food safety precautions. Remarks on the disposal and maintenance of expired foods must always be maintained for inspection purposes. This step also helps food handlers account for reasons why foods have gone past their use-by dates without being used and improve operations.

What is the FIFO procedure?

The FIFO procedure is a very useful system that can help food establishments optimize food ingredients and gain maximum benefits and increase restaurant profit margin. It uses a system that prioritizes using foods with the soonest expiration or use-by dates to reduce the likelihood of food waste and spoilage that can lead to foodborne illnesses.

This food storage system is concerned with both the accounting section and food safety section of your food business. Under the FIFO system, the following procedures are highlighted and implemented:

• Organize foods in groups: Organization in the context of FIFO involves grouping multiple products of the same category. It also includes grouping foods based on the storage conditions such as temperature and time. In implementing FIFO, food handlers must be aware of how to properly group foods based on shelf-life and storage requirements.
• Always put older foods in front: The main FIFO principle is to put foods that have been produced or acquired earliest in the most accessible spot of the storage area which may either be the top-most shelf or in front of the bunch of foods.
• Recognize expiration dates and mark foods accordingly: A very important factor in implementing FIFO is recording use-by dates or date-marking foods that are loose or produced in-house. These dates are your guides for deciding which one to use or if raw materials are still safe for use.

The mentioned three procedures make up the whole FIFO method. Although simple, food handlers must understand the importance of each procedure to accomplish FIFO implementation. The task of implementing the FIFO method does not stop on day 1. It must be consistently maintained to become effective and prevent any food safety and quality problems.

What's a good food industry FIFO example?

Although other systems such as the LIFO method (Last-in, First-Out), which is a reverse approach exist, the advantage of FIFO is still more appreciated in the food industry, especially in managing company stock.

A good FIFO method example can be found in a restaurant setup. In such a food establishment, it's very normal to stock items in bulk to reduce the average cost of deliveries, transportation, and even the cost per unit of the food ingredients.

As such, most food businesses build comprehensive inventory management systems to track the flow of food. These food ingredients may be of the same categories such as being very perishable, ready-to-eat, or raw ingredients. The process of procuring these products is a cycle and is done routinely.

Using the First-In, First-Out method, the items in inventory are regularly restocked even before they are completely consumed. Once new stocks arrive, the old batches may be forgotten.

While it is very tempting to use newer, higher-quality ingredient stocks to achieve superior quality, the older batches that are still wholesome must first be used. This is why outsourcing is done on time to ensure that the remaining stock is still safe to be used.

To prevent mistakenly using newer stocks first, the manufacturing information of the newer batches is recorded and used for organization. All new food ingredients are placed at the back of the storage area (e.g., walk-in cooler, freezer, or refrigerator), whereas the older ones are placed in front where food handlers can easily see and use them.

At this point, the organization of foods in a refrigerator must still follow minimum food safety standards to avoid cross-contamination. This is also the case for additional inventory purchases. When a restaurant business makes emergency purchases, older stocks are still placed in front.

With a food inventory management such as the FIFO system, you reduce food wastage by ensuring that the older stocks are used without the risk of food poisoning.

How should a food worker store food using FIFO?

Let's use the following example of how a food worker should store food using FIFO and assume they're restocking cheese in the walk-in refrigerator:

1. Locate the cheese products with the soonest before or use-by dates.
2. Remove the cheese products that are damaged or past these dates.
3. Place cheese products with the nearest dates at the front of the fridge.
4. Stock new cheese products behind the older ones making sure the latest dates are farthest back.
5. Use or sell the cheese products at the front of the fridge first.

3 Tips for mastering FIFO implementation in food storage

1. Assess Your Storage Needs

Evaluating your storage needs is crucial for effective FIFO implementation. Start by reviewing your current stock. Take inventory of all food items and check their expiration dates. Ask yourself which items spoil fastest. Perishable goods like dairy products, fruits, and vegetables often need prompt attention.

Next, consider any limitations your storage space might have. Is there enough room for proper rotation? You'll want to redesign your storage layout to allow easy access to older stock. A well-planned warehouse layout is another foundational aspect. Place older stock in the front and new stock at the back. This layout will also make audits more efficient. Monitor how easy it is for staff to use the space effectively.

2. Develop a FIFO Plan

Once the storage assessment is complete, it's time to bring the FIFO plan to life. Start by organizing your inventory. Place older stock in a way that ensures staff use it first. A straightforward mapping system or clearly drawn layout helps illustrate this.

Following this, establish a tagging or labeling system. Use clear date labels to mark all incoming stock. An easy-to-read label on each item should display the receive date prominently. You might consider using color-coded tags to help staff see at a glance which items need priority. Jane Doe, a Food Safety Consultant, stresses the importance of clear labels. They allow quick identification of items needing use first.

Weekly checks are a must. Audits help ensure compliance. According to Dr. Michael Johnson, regular audits catch inconsistencies early. Monitoring and adjusting your system can prevent errors and correct inefficiencies quickly.

3. Train Your Team

Training your team is pivotal in implementing FIFO. Kick things off with workshops to teach FIFO practices. Make these hands-on sessions. Let team members rotate stocks during the training to understand the system's nuances.

Real-world scenarios solidify understanding. Show examples of potential waste if FIFO isn’t followed. Stress how it impacts both the bottom line and food safety. This approach forms a base for ongoing adherence to FIFO rules.

Following the training, monitor staff practices. Note any deviations from FIFO protocols. Provide feedback regularly to help reinforce training concepts. Active engagement and feedback ensure improvements in adherence over time.

Learning and Feedback Process

Training shouldn’t just be a one-time event. Follow up with feedback sessions. Make improvements based on staff input. Encourage them to share their perspectives and any challenges they encounter.

• An effective FIFO system relies on teamwork and understanding.
• Adapt your training according to the feedback received.
• Continuous improvement is the goal for lasting success.

By focusing on storage needs, planning, and team training, you will set the foundation for a successful FIFO system. With these steps, you'll prepare for a safer, more efficient, and cost-effective food management process.

How to easily monitor food safety storage and FIFO tasks with FoodDocs

To help every food business reduce the burden of monitoring food safety operations and maintain food safety compliance, our team at FoodDocs has built a digital Food Safety Management System powered by artificial intelligence. With very simple steps such as answering a few basic questions, you can get a comprehensive digital FSMS in just an average of 15 minutes.

While there are several inventory stock management software programs available, our system can act as complementary software for monitoring food safety. With easy integration features, your food safety team will be able to easily monitor food storage conditions.

Specifically, our system can automatically generate a digital FSMS with the following features:

• Digital monitoring forms: These monitoring forms are automatically built specifically based on your operation's nature. They are equipped with an auto-fill feature that relieves the repetitive process of inputting information on forms from your food employees and saves them time. The information inserted into the monitoring forms is based on previous data entries and would only require to be verified.
• Smart notification system: Using our mobile application, our system sends out notifications to your food workers when a food safety task is due to be done. This notification feature can also be used to remind your employees of any use-by date for specific stocks and prevent them from going bad.
  

• A real-time dashboard: Use our system's food safety dashboard that reflects your operation's progress and can give you an overview of your daily food safety practices. You can easily identify areas that need improvement using the real-time dashboard and save at least 20% of your time from supervising.
• Cloud storage: When you sign up with us, you automatically get cloud storage where you can store and organize your digital documents. Save up on space and reduce using paper for a more sustainable food business using our digital FSMS.

In addition to these features, our system can also accommodate improvements by making the major components of your digital FSMS customizable. The edit feature can also be used to create new monitoring forms that are unique to your food business.

While our product features a traceability system, our highlighted feature is in helping you create digital and automatic checklists and monitoring forms to control and ensure that FIFO is always followed. Our traceability system can be used to track and alert your employees on the maximum shelf-life of your products.

Food storage management is undeniably tied to the success of food safety compliance. Using our system, you can effortlessly create a digital FSMS that is built specifically on your food operations without spending too much time on conceptualization and revisions. You do not even have to be a food safety expert to use our digital solution.

Whether you are a newcomer to the food industry or a long-time player who is unsure in switching to a digital platform, our system can make your life easier. At FoodDocs, one of our main objectives is to make food safety compliance an easy job for everyone. We've taken out the tedious process of building every monitoring form from scratch and we've even improved it by making functions automated.

Start your food safety journey with us now and experience every feature that our system has to offer for free! Use our 14-day trial program and explore how our system can help you.

Frequently asked questions about the FIFO method