FIFO, FEFO and LIFO: the golden acronyms of healthcare logistics

Have you heard of FIFO, FEFO and LIFO? They almost sound like cartoon characters or lines from a poem. In fact, they are how hospitals, clinics and materials centers manage to organize their inventories, avoiding waste, protecting patients and gaining speed in different processes of the hospital routine.

What do FIFO, FEFO and LIFO mean?

See what lies behind the four letters of each acronym:

FIFO — “First In, First Out”

In plain words: “first in, first out” (known in Portuguese as PEPS). It means the items that arrive in inventory first are the first to leave.

If you use FIFO, you make sure older materials (such as syringes, gloves, packaging) do not sit idle for ages. This helps maintain turnover and keeps the inventory from filling up with “forgotten” items that may become useless.

It also simplifies accounting, because the oldest assets are always used first — which can help with cost control.

FEFO — “First Expired, First Out”

This acronym has a somewhat more dramatic tone: “first to expire, first out.” Here, the priority criterion is not the order of entry into inventory but the expiration date.

In hospitals, this is especially critical for medications, vaccines, pharmaceutical supplies and sterilized materials. If you do not use FEFO, you risk losses due to expiration, which means spending money on something that ends up in the trash — or worse, using something expired.

Hospital studies and manuals recommend this method especially in the Central Sterile Services Department (CME), precisely to avoid unnecessary resterilization or disposal. It also helps ensure safety and regulatory compliance: using first what will expire first avoids quality problems.

LIFO — “Last In, First Out”

The most counterintuitive of the three acronyms, it means “last in, first out” (or UEPS, in Portuguese). Here, you prioritize the newest items to leave first. When does this make sense in healthcare? It is less common, but it can be useful for stock that has no significant expiration date or for items whose turnover does not require using the oldest ones right away.

It can also serve as a “safety” strategy: keeping older items in storage while the new ones turn over first, with a good understanding of the inventory’s risks and needs.

One drawback: if used without criteria, it can lead to a buildup of old items, or even create accounting cost problems, depending on how the inventory is valued.

Why these acronyms make such a difference

See the positive impacts of these methodologies on healthcare management:

• Less waste and clinical risk: in a hospital, waste is not just a financial loss — it can mean expired supplies or, worse, the use of out-of-date materials. FEFO helps mitigate this risk.

• Operational efficiency: with FIFO, it is easier to rotate items, avoiding gaps in inventory or excess buildup.

• Cost control: these methods help organize inventory so that managers know exactly what is available, what needs to be replenished and what should go out first, helping reduce operating costs.

• Regulatory safety: in the healthcare industry, regulatory requirements (especially for medications and sterile materials) are high. A good inventory management method helps meet standards, avoid losses and ensure quality for the patient.

The connection with Rivio’s vision

Rivio believes that optimizing resources and time is the key to keeping hospitals and clinics financially healthy and, at the same time, focused on care. If your organization wants to know how we can help implement smart management tools, contact our service teams right now. Rivio is passionate about turning good theories into practical impact.