A perfectly functioning warehouse must focus on the smooth receipt and delivery of goods, as the efficiency of the supply chain depends on it. Therefore, methods are introduced that improve warehouse operations, and in particular are used in large warehouses, where the daily number of loading and unloading is high.

Picking is a warehouse operation, which consists in taking inventories in accordance with the assortment and quantity specification, from stacks or storage devices. The purpose of this operation is to create an inventory collection, and this can be done on-site or off-site. When picking, the three most known and basic techniques related to the order of goods release from the warehouse are used. Their task is to reduce the risk associated with unnecessary detention of products.

The first method is LIFO (Last In First Out), i.e. last came first out. One of the least frequently used techniques characterized by the fact that loading units of the same goods that arrived at the warehouse at the latest are issued first. It is mainly used for goods that do not lose their value over long periods of storage.

Another method is FIFO (First In First Out), i.e. first came first out. The most common technique is that loading units of the same good arriving at the warehouse earliest are issued first. A positive effect of using the above method is certainly minimizing the risk associated with unnecessary keeping of goods in the warehouse.

The third method is FEFO (First Expired First Out), i.e. the first one expires first out. The technique is applicable to goods with a specific use-by date, whereby the loading units with the shortest use-by date are issued first. The above principle is mainly applied by enterprises in the food industry and prevents the expiry of products and the related losses.

The selection of the appropriate method must take into account the specificity of the industry and the possibilities as well as the warehouse infrastructure. It should be borne in mind that this is a key aspect of its functioning affecting its efficiency, which translates into the company’s financial result.