Live in KSA Live in UAE Live in Oman 90 Days Free Trial

Why Does Inventory-First Matter and How is it Different from POS-First?

Share the jalebi bites

First In First Out inventory method

Managing inventory is one of the most important tasks that a business can undertake.

It’s essential to ensure that the right amount of stock is available to meet customer demand, while also protecting against stock-outs and ensuring that products are stored safely and in a manner that complies with regulatory requirements.

FIFO and POS-first are the most commonly used inventory management methods. 

Do you know the difference between the First In First Out inventory method and POS-First?

If not, you might want to start paying more attention to the stock market – these terms are becoming increasingly important as companies strive to optimize their inventory management. 

In this article, we will explain what the First In First Out inventory method is, and then go on to discuss the benefits of using this inventory management method.

We’ll also compare it with POS-First, and explain why it’s becoming more and more common in today’s business world.

What is Inventory Management?

Inventory management is the process of organizing, maintaining, and controlling inventory. It includes the identification, counting, storage, and accessibility of inventory.

An important goal of inventory management is to ensure that the right inventory is in the right place at the right time.

Inventory management is a critical part of any business that deals with physical goods. Without proper inventory management, businesses can suffer from stockouts, lost sales, and decreased customer satisfaction.

What is the First in First Out Inventory Method?

What is the FIFO inventory method?

The First In First Out inventory method is a system for managing inventory that ensures that the first items to enter the inventory are also the first to leave.

Now that you know what the FIFO inventory method is, it is important to know that this method is used in many businesses, particularly those that deal with perishable goods, to ensure that older items are used before they expire.

What is the POS-First Inventory Method?

The POS-first inventory method involves tracking inventory levels at the point of sale (POS), rather than relying on estimates or physical counts.

This ensures that businesses always have an accurate picture of their inventory levels, as well as what needs to be reordered.

Additionally, the POS-first inventory method can help businesses avoid stock-outs and overordering, both of which can negatively impact the bottom line.

The Key Difference Between FIFO and POS-First Method

There are two main methods that businesses use when it comes to managing inventory: FIFO and POS-First.

Both of these methods have their advantages and disadvantages, so it’s important to understand the differences before deciding which one is right for your business.

FIFO, or First In First Out inventory method, is the most common method used by businesses.

This method simply means that the first items to come into your inventory are the first ones to be sold whereas POS-First, or Point of Sale First, is a newer method that is becoming more popular with businesses.

This method involves selling the items in your inventory that have been selling the best first, regardless of when they were received. 

One of the main advantages of the First In First Out inventory method is that it helps to ensure that your products are always fresh and new.

However, the disadvantage is that it can sometimes lead to shortages of certain items if they sell quickly.

Whereas the advantage of POS-first is that you’re more likely to sell all of your products rather than having some go out of date.

However, the disadvantage is that you might end up selling some older items before newer ones, which could lead to customer dissatisfaction.

The Importance of the First In First Out Inventory Method

The First In First Out (FIFO) is one of the most common inventory management methods used in businesses today. It is simple to implement and easy to understand, which makes it a popular choice for small businesses and start-ups. Here are five reasons why FIFO is such an important inventory method.

1- Ensures Timely Selling of Products

FIFO, or First In First Out, is an inventory management technique that is used to ensure that products are sold promptly.

This system is based on the principle that the first item to be stored in an area is also the first item to be sold from that same area. 

By using this method, businesses can avoid having outdated products sitting on their shelves and instead sell items while they are still fresh and relevant. Additionally, FIFO can help to prevent the spoilage of perishable items.

jalebi.io’s restaurant management system is designed to streamline inventory management for restaurants.

We follow the inventory-first approach to ensure that all of your restaurant’s inventory is accounted for and up-to-date. This allows restaurants to sell their menu items promptly.

Save at least 5% on every order you serve with:

  • Intuitive Inventory Managment
  • Simpler Kitchen Operations
  • Dynamic Customer Orders
  • Integrated Supplier Managment
...& MORE.

2- Easier to Track Inventory

First in, first out (FIFO) is a method used to manage inventory levels. When new items are added to inventory, they are typically added to the back of the line.

This means that businesses always know which items have been in stock the longest and which need to be sold first. This can make it easier to plan for future sales and manage overall inventory levels.

One of the biggest advantages of the First In First Out Inventory method is that it can help businesses keep track of their inventory more easily.

By knowing which items have been in stock the longest, businesses can more effectively plan sales and manage overall inventory levels.

At Jalebi.io, we follow the FIFO method and track inventory in real time. This ensures that food is always fresh and doesn’t run out quickly.

Additionally, it helps staff know what needs to be replenished. This system can be used for any type of restaurant, from small cafes to large chains.

3- Better Customer Service

FIFO, or first in, first out, can be a helpful way for restaurants to provide a better customer experience. By ensuring that customers always receive fresh food, businesses can avoid disappointing them with low-quality servings. This can build customer loyalty and repeat business over time.

When food is stored using the FIFO method, the oldest items are used first.

This means that customers will always receive the freshest possible food. As a result, they are less likely to be disappointed with their meals and more likely to return to the restaurant in the future.

FIFO can be especially important for businesses that serve perishable items like seafood or salad.

These items can quickly become stale or go bad if they are not used promptly. By implementing FIFO, restaurants can ensure that their customers always enjoy fresh, high-quality food.

To enhance the customer experience further, Along with following the FIFO approach, jalebi.io’s restaurant management platform offers reporting and analytics so that restaurants can improve their services based on customer behavior.

4- Keep Food Cost Low

FIFO, or first in first out, is a system that enables restaurants to reduce waste and keep food costs down. By following the FIFO system, restaurants can ensure that the oldest food items are used first before they have a chance to go bad.

This allows restaurants to save money on food costs, as well as reduce the amount of food waste they produce.

To follow the FIFO system, restaurants need to keep track of the age of all their food items.

This can be done by using a date-tracking system, such as color-coded labels or stickers. Once an item reaches its expiration date, it needs to be used immediately or thrown away. However, Jalebi.io automates inventory management for you through its platform.

jalebi.io’s reporting feature makes it easy to track and manage your restaurant’s inventory, so you can always know exactly how much food you have on hand and what it costs.

This way, you can make sure you’re using your ingredients before they go bad, and not overspending on new ingredients when you don’t need to. 

Restaurant Inventory Management With jalebi.io

If you’re in the business of food, then you know that managing your inventory is a top priority. After all, if you run out of food, your customers will be very unhappy. That’s why a restaurant management system is extremely important.

jalebi.io is an online restaurant management platform that leverages the inventory-first approach.

This means that restaurants can manage their inventory and track their sales in real-time, so they can make informed decisions about what to order, when to order, and how much to order. 

It also provides restaurants with a suite of tools to help them streamline their operations, including a POS system, synchronized menus, and reporting tools.

With jalebi.io, you can keep track of everything from your suppliers to your transactions, making it easy to run your business smoothly. Not only that, but our platform is also very affordable, so you can get started without breaking the bank. 
So what are you waiting for?

Contact us today and see how Jalebi.io can help you take your restaurant to the next level!

Try jalebi.io FREE For 90 days

Get your demo booked now to get onboarded

Join our waitlist