FIFO refers to the “First In, First Out” inventory management method, where the oldest stock is sold or shipped first before newer items. In practice, first-in, first-out means that the first goods received are the first to be shipped, preventing outdated products from accumulating on the shelves. Defining the FIFO method is crucial in the beverage industry and other fast-moving consumer goods (FMCG) sectors where products are perishable. This warehouse logistics strategy improves traceability, reduces waste, maintains freshness, and ensures better quality control, ultimately helping avoid financial losses from expired stock.