How to Train Your Staff on FIFO vs LIFO inventory strategies for construction supply

How to Train Your Staff on FIFO vs. LIFO Inventory Strategies for Construction Supply

In construction supply distribution, getting inventory out the door fast is important—but getting the right stock out in the right order is critical.

Whether you’re using FIFO (First-In, First-Out) to protect product quality or LIFO (Last-In, First-Out) for cost or space efficiency, your strategy is only as good as the people executing it.

Unfortunately, inventory mistakes often don’t come from your ERP—they come from the yard or warehouse floor, where unclear SOPs, outdated training, or high turnover lead to:

Mis-picks

Expired materials going out

Stock inconsistencies

Rework or returns from job sites

Here’s a clear and actionable guide on how to train your team to follow FIFO or LIFO strategies—and make sure your tech supports them.

🏗️ Step 1: Start With the “Why”

Before you get into process, explain why this matters to your staff.

For FIFO:

Older materials (adhesives, bagged cement, insulation) can degrade

Customers expect shelf-life-sensitive products to be fresh

Mistakes lead to warranty claims and rework

For LIFO:

Used for bulk items where freshness isn’t a concern

Common for back-stocked, commoditized SKUs

Supports pricing strategies during cost fluctuations

✅ When the team understands the why, they’re more likely to follow the how.

🧱 Step 2: Define the Strategy by SKU or Product Category

Your team needs to know which strategy applies to which material.

Use clear visual aids:

Post charts in staging areas (e.g., “FIFO ZONE – Adhesives / Sealants”)

Use color-coded bin labels

Add SKU tags with “FIFO” or “LIFO” icons

Highlight strategy rules in your ERP’s mobile picking app

✅ Consistency starts with clear classification and signage.

📲 Step 3: Leverage Your ERP and Scanning Tools

Your ERP can enforce rotation strategy through:

Location-based pick rules (e.g., pull oldest lot first)

Batch tracking or expiry-based FEFO for FIFO logic

Auto-blocking expired or aging stock

Picking sequence enforcement in mobile apps

✅ Train staff to always scan, even when materials “look the same.” That scan determines the right lot or order.

📦 Step 4: Train Using Real-Life Examples and Roleplay

Don’t just hand out PDFs. Get your team hands-on with real products and real scenarios.

Examples:

Pull two pallets of sealant—one received 90 days ago, one last week

Ask the trainee which one to ship for FIFO

Walk through what happens if it goes wrong at the job site

✅ Reinforce training with quick quizzes or refreshers during toolbox talks or team meetings.

🚛 Step 5: Include Staging and Loading Staff in Training

Mistakes don’t only happen during picking—they happen during staging and loading too.

Make sure loaders know:

The order in which products need to come off the truck (especially for LIFO logic)

How to double-check FIFO-pulled lots

What to do if something looks damaged or too old

✅ Your entire team—from picker to driver—should understand the full flow.

📊 Step 6: Track and Reinforce With KPIs

Your ERP should show you:

% of orders fulfilled correctly by FIFO or LIFO rules

Aging inventory trends

Number of expired products shipped

Return reasons tied to material condition

✅ Use this data to reward accuracy, retrain when needed, and keep your process sharp.

Final Thoughts

Inventory strategies like FIFO and LIFO aren’t just accounting terms—they’re operational realities that impact your margins, your reputation, and your job-site performance.

The key to execution? Simple, clear, hands-on training, backed by ERP automation and process visibility.

📦 Need help aligning your ERP logic, barcode tools, and training programs to enforce FIFO or LIFO properly? Let’s build a rotation strategy your team can follow—and trust.