When we talk about how stock moves through a warehouse, you’ll often hear the terms LIFO and FIFO. These describe the flow of goods, how they’re loaded, stored, and retrieved, and each suits a different type of racking system. To explore more on this topic we caught up with Mennolt from Queensland Storage Systems to talk about LIFO and FIFO.
“These are simple concepts once you understand them,” Mennolt explained. “They describe how goods move through a warehouse; how stock is loaded, stored, and retrieved. Each one suits a different type of racking system and operation.”
What Is LIFO (Last In, First Out)
“LIFO stands for Last In, First Out,” Mennolt said. “It means the last pallet that goes into storage is the first one to come back out.”
LIFO systems are most commonly used in Drive-In Racking and Double Deep Racking setups. “With drive-in racking, you have a series of lanes where pallets sit on rails, often four or five high and anywhere from three to eight deep,” Mennolt explained. “The forklift drives directly into the lane, places the pallet, and reverses out. Because there’s only one access point, the last pallet loaded in is the first one retrieved.”
This type of setup works best for large volumes of the same or similar stock. “A good example would be frozen foods like Christmas turkeys or chickens,” Mennolt said. “You’re storing a big batch of identical stock and you don’t need to rotate it. That’s why you’ll often see drive-in racking in cold stores, freezer rooms, and large distribution centres where space is tight and high density is the goal.”
Double Deep Racking operates in a similar way. “It’s basically two rows of selective racking set back-to-back so you can store two pallets deep instead of one,” Mennolt explained. “It still runs on a LIFO principle but gives you a bit more flexibility. You get better density without losing too much accessibility. The only thing is, you’ll need a specialised forklift with a longer reach to pick from the back position.”
“The big advantage of LIFO,” he said, “is density. You can fit a lot of stock into a smaller footprint. The trade-off is you lose a bit of selectivity because you can’t reach every pallet straight away. But for bulk stock, it’s ideal.”
Drive In Pallet Racking
Double Deep Pallet Racking
What Is FIFO (First In, First Out)
“FIFO stands for First In, First Out,” Mennolt explained. “That simply means the first pallet or product to go in is the first one to come out.”
FIFO systems are used when stock rotation is important, such as with perishable or date-sensitive products. “You’ll usually see FIFO systems in Live Carton Racking or Selective Pallet Racking setups,” he said.
In Selective Pallet Racking, each pallet can be accessed directly, which makes stock rotation straightforward. “Because every pallet is immediately accessible, it’s easy to maintain a FIFO operation if you need it,” Mennolt said. “It’s the most flexible system overall and works well for warehouses with mixed stock or frequent picking.”
Live Carton Racking is another example of a FIFO system but for picking. “It’s a roller system set on a slight angle,” Mennolt said. “Products are loaded from the back and roll forward to the picking face. As one item is picked, the next one slides forward into place. It’s perfect for anything with a shelf life, like food, coffee, or pharmaceuticals.”
Selective Pallet Racking
Live Carton Racking
Which System Works Best
“The right choice depends on the type of stock you’re storing and how your warehouse operates,” Mennolt said.
“If you’re handling large quantities of identical goods, LIFO systems like Drive-In or Double Deep Racking make sense. They’re simple, dense, and efficient.”
“If you need consistent stock rotation where the oldest items need to move first, FIFO systems like Live Carton or Selective Pallet Racking are the way to go. They keep product flowing and make picking faster and more accurate.”
He added, “Both systems have their place. It’s just a matter of matching the racking to the job and making sure the flow of stock suits how you operate day to day.”
Ready To Maximise Space in Your Workplace?
If you’re not sure which storage system best suits your warehouse operation, Queensland Storage Systems can help. Call 07 5537 5999 or submit an online enquiry to speak with Mennolt and the team. We can help you design a LIFO or FIFO racking system that fits your product range, warehouse layout, and stock movement requirements.
About Mennolt Regtien
Mennolt Regtien brings more than 20 years of hands-on experience in the storage and pallet racking industry in Australia, backed by a broader career spent helping businesses grow, improve productivity and solve operational challenges. Before moving into pallet racking and storage systems, he spent around 10 years consulting to small and medium businesses on growth and development, and earlier worked in venture capital and startups, including helping Australasian companies expand into Asian and US markets.
His experience helps him look beyond the racking itself to understand each client’s wider business goals, identify operational issues quickly, and recommend storage solutions that support both efficiency and future growth.
