How.Old.Do You Have To Be To Leave Home In Maryland FIFO – First In First Out for Vending Machines

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FIFO – First In First Out for Vending Machines

If you’ve ever dealt with anyone in the vending machine industry, you’ve probably heard them use the term FIFO (fee-foh) a lot. FIFO is first in first out The reason you often hear it used is that proper understanding and use of the FIFO principle is critical to the profitability of your vending business. But the correct way and importance of using FIFOs is often misunderstood. With this in mind, we will clearly define how FIFO should be used and why it is important.

What is first in first out?

Broadly speaking, FIFO means making sure your oldest fresh product is the first to be delivered when someone uses your vending machine. In practice, it’s not as simple as always restocking from the back, but it’s a good place to start. When restocking your machine, add new products to sell after the product has been placed in the machine. In a standard cooler, it’s a simple matter of adding a new drink to the column above the drinks already in the machine. In a glass-front snack maker, add the new product to a deeper spiral behind the existing product. The method may vary from machine to machine, but the basic principles remain. Usually that’s all you need to think about, but there are exceptions.

  • Sometimes the product in the less active machine will be older than the product remaining in the active machine. Keep track of the age of all your products, and when it’s close to expiry, you may have to move products from one machine to another to attract more customers. It’s better to spend a little extra time moving products than to end up having to throw out expired products.
  • FIFO begins as soon as you purchase the product. This means you also need to rotate the product you store before going to the machine to restock. When loading up your vehicle, make sure you’re using the product you’ll be using the longest. Otherwise, you’ll end up throwing away a box of product that’s been sitting in your warehouse, even though you’ve sold multiple boxes of that product since you bought it.

Why are FIFOs important?

  • Rotating your produce properly can save you money by reducing the amount of product you have to throw away.
  • Properly rotating your product can reduce the number of times you have to refund customers who deliver obsolete product from your machine. Refunds cost money and time.
  • Rotating your products properly can reduce the number of unhappy customers. Even if they don’t ask for a refund, they may stop using your machine. When you consider that some people use the same vending machine multiple times a week, the potential lost revenue over time can be substantial.

The goal is to always provide fresh products to maintain customers and limit losses due to food spoilage. Proper use of FIFOs is the most reliable way to achieve this goal.

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