benefits of fifo

benefits of fifo refers to the advantages of using the First In, First Out (FIFO) method in inventory management. FIFO ensures that the oldest inventory is used first, reducing the risk of obsolescence and product expiry. This system is particularly beneficial in industries dealing with perishable goods or items with expiration dates. In retail and e-commerce, FIFO helps maintain a streamlined inventory process, improves stock turnover, and supports better financial forecasting and decision-making. By minimizing waste, FIFO also contributes to cost savings and improved operational efficiency.