FIFO stands for “First In, First Out.” It’s a standard inventory management practice in the pharmaceutical and healthcare industries that ensures the oldest stock of medications is used first.
First In: The first stock of medicines received is given priority for distribution or administration.
First Out: Medicines are distributed in the order in which they were received, to ensure that the old medicine is used before a new one is put into circulation.
Importance of FIFO
Preventing drug expiration
- The primary goal of using FIFO is to prevent medications from expiring on the shelf. By constantly rotating stock, pharmacies and healthcare facilities can reduce the risk of having outdated medications that can no longer be used.
- Expired medications may lose their efficacy or become unsafe for consumption, so using FIFO helps ensure that patients receive effective and safe medications.
Reducing Financial Losses
- Wastage of medicines due to expiration date can cause huge financial losses to pharmacies, hospitals, and other healthcare providers.
- By following FIFO procedures, organizations can reduce the costs associated with the disposal of expired medications and improve their overall profitability.
Ensuring Medication Safety
- FIFO helps maintain patient safety by ensuring they are receiving medications within their effective date range.
- Proper stock rotation can prevent the distribution of out-of-date or ineffective medications, thereby increasing the quality of care provided to patients.
How FIFO is Implemented
Organize stocks by expiry date
- Medicines should be arranged on shelves according to their expiry date, with the oldest stock placed at the front and the newest stock at the back.
- Clearly labeling expiration dates on packaging makes it easier for pharmacists to identify which product to use first.
Receiving New Inventory
- When new medicine stock arrives, it needs to be stored behind the existing stock to maintain FIFO flow.
- This method ensures that current stock is used first, thereby avoiding the inadvertent use of new medicines when old ones run out.
Regular Stock Audits
- Regularly auditing medication inventory helps identify medications that are nearing their expiry date.
- These audits also ensure that the FIFO process is being followed correctly and that any issues in stock rotation are resolved promptly.
Use of technology and inventory management systems
- Modern pharmacies and hospitals use computerized inventory management systems to monitor expiration dates of medicines and manage stock according to FIFO principles.
- Barcode scanning technology can also assist in verifying the date of receipt of medications, helping to automate the FIFO process and minimize human error.
Challenges in Implementing FIFO
Human Error
- Mistakes in arranging or stocking shelves can disrupt the FIFO process, resulting in new stock being used before older stock.
- In a fast-paced environment, there is a risk of medications being misplaced, which can result in medication loss.
Complex Inventory Needs
- Some drugs require specific storage conditions or have special handling requirements that can complicate the implementation of FIFO.
- Managing medications with a high turnover can be challenging, particularly when large quantities of medications are acquired and dispensed in a short period of time.
Space Limitations
- Limited storage space can make it difficult to effectively organize medications according to their expiration dates.
- Pharmacies with limited space may need to invest in storage solutions that ensure easy access to all stock while optimizing the FIFO process.
Best Practices
Provide regular training to staff
- Regular training programs for employees can help reinforce the importance of the FIFO method and ensure that everyone is familiar with the correct procedures.
- Educating employees about the risks of not following FIFO can increase compliance and minimize errors.
Clear and consistent labeling
- All medicine packets must have a clear and visible label indicating their expiry date.
- Colour-coded labels or tags can be used to highlight products that are nearing expiration, encouraging employees to priorities their use.
Leveraging technology
- Use advanced inventory management software that can alert employees when a stock’s expiration date is approaching or when the FIFO process is not being followed.
- Automated systems can help streamline the inventory process, reduce manual errors, and maintain accurate records of stock levels and expiration dates.
Benefits of FIFO in Medication Management
- Reduced medicine waste: Reducing the number of expired medicines saves money and also reduces environmental impact.
- Improved patient safety: This ensures that patients receive effective and safe medicines.
- Increased efficiency: Streamlined inventory management saves pharmacy staff time, allowing them to focus on patient care.
- Compliance with Regulations: Helps pharmacies meet industry standards and regulatory requirements for medication storage and handling.
