Case Study: Real-Time Inventory Visibility and FEFO Lot Tracking for Small Consumables Brand

How a Cincinnati-based consumables brand achieved 99.8% inventory accuracy and eliminated $47,000 in annual expired product waste through intelligent WMS implementation and FEFO lot tracking.

Client Profile

Industry: Health & Wellness Consumables
Product Type: Shelf-stable nutritional supplements with 18-24 month shelf life
Sales Channels: Direct-to-consumer (Shopify), Amazon FBA, Wholesale (B2B retail accounts)
Monthly Order Volume: 3,200-4,500 orders across all channels
SKU Count: 47 active SKUs with multiple lot numbers per SKU

The Challenge: As this rapidly growing brand expanded from DTC-only to omnichannel distribution, they faced critical operational challenges:

Zero real-time visibility into inventory across multiple sales channels
Manual lot tracking led to frequent picking errors and expired product shipments
Overselling incidents caused by inventory sync delays (up to 8-hour lag between channels)
Regulatory compliance risk due to inability to trace lot numbers for recalls
$47,000 annual waste from expired products not rotated using FEFO methodology

The Requirements: What They Needed in a WMS Partner

When evaluating fulfillment partners, the client prioritized these capabilities:

1. Real-Time, Cross-Channel Inventory Synchronization

Inventory updates needed to sync across Shopify, Amazon, and B2B EDI channels within 60 seconds of any transaction
Support for reserved inventory (held for pending B2B orders) vs. available inventory (for DTC)
Prevent overselling across channels during high-volume flash sales

2. Automated FEFO Lot Tracking

System must automatically select oldest expiration date first during picking (not first received)
Support for multiple active lot numbers per SKU simultaneously in inventory
Expiration date alerting: flag products within 90 days of expiration for clearance or removal

3. Lot-Level Traceability for Compliance

Ability to trace any shipped order back to specific lot number and receipt date
Rapid recall capability: identify all orders containing affected lot within 15 minutes
FDA-compliant lot documentation and reporting

4. B2B and B2C Flexibility

Support for both eaches (DTC single-unit orders) and case quantities (B2B wholesale)
Different packaging and labeling requirements by channel
EDI integration for wholesale accounts with ASN and invoice automation

The Solution: Product Fulfillment Solutions’ WMS with FEFO Intelligence

Product Fulfillment Solutions implemented a comprehensive WMS solution tailored to the client’s consumables-specific requirements:

Phase 1: WMS Integration and Data Migration (Weeks 1-2)

Inventory Migration:

Transferred 47 SKUs with 183 active lot numbers from client’s previous 3PL
Validated expiration dates and receipt dates for each lot
Established FEFO picking rules in WMS configuration

Channel Integrations:

Shopify: Real-time API integration for order import and inventory sync (30-second intervals)
Amazon Seller Central: Automated FBA replenishment based on reorder points
EDI (B2B Wholesale): 850 purchase orders, 856 ASNs, 810 invoicing for 8 wholesale accounts

Lot Tracking Configuration:

Set expiration date thresholds: 90-day warning flag, 60-day clearance recommendation, 30-day removal
Configured FEFO picking logic: system auto-selects earliest expiration date for each SKU during wave picking
Enabled lot-level barcode scanning for receiving and shipping verification

Phase 2: Operational Deployment (Weeks 3-4)

Warehouse Workflow Changes:

Implemented barcode scanning at receiving: lot number and expiration date captured at putaway
FEFO-based wave picking: WMS generates pick lists with lot-specific bin locations
Quality control checkpoints: expiration date verification before packing

Real-Time Visibility Dashboard:

Client granted read-only WMS access to monitor inventory levels by channel in real time
Custom reporting: lot aging report (shows days until expiration for each lot)
Low-stock alerts: automated email notifications when SKUs fall below reorder point

Training and Testing:

PFS warehouse team trained on FEFO picking methodology and lot verification protocols
Conducted parallel operations for 2 weeks to validate accuracy before full transition

The Results: Quantifiable Improvements

Inventory Accuracy: 97.2% → 99.8%

Pre-PFS: Quarterly physical inventory counts showed 97.2% accuracy (industry standard)
Post-PFS: Cycle count accuracy improved to 99.8% due to real-time WMS updates and lot-level tracking
Impact: Reduced inventory discrepancies from 2.8% to 0.2%, saving $12,000 annually in inventory adjustments

Expired Product Waste: $47,000 → $3,200 (93% Reduction)

Pre-PFS: Manual FIFO rotation led to $47,000/year in expired product write-offs
Post-PFS: Automated FEFO logic reduced waste to $3,200/year (only products damaged in transit or returned near expiration)
Impact: $43,800 annual savings in waste elimination

Order Fulfillment Speed: 3.2 Days → 1.4 Days

Pre-PFS: Average time from order placement to shipment was 3.2 business days
Post-PFS: Real-time order import and automated picking reduced to 1.4 business days (same-day for orders received before 2 PM EST)
Impact: Improved customer satisfaction scores (NPS increased from 62 to 81)

Overselling Incidents: 12/Month → 0

Pre-PFS: 8-hour inventory sync lag caused 12 overselling incidents per month during promotions
Post-PFS: Real-time cross-channel sync eliminated overselling entirely
Impact: Eliminated customer service costs for oversell resolution (~$8,000/year in refunds and expedited re-shipments)

Recall Readiness: 4 Hours → 12 Minutes

Pre-PFS: Identifying affected orders during lot recall took 4+ hours of manual record review
Post-PFS: WMS lot traceability enables full recall report generation in 12 minutes
Impact: Enhanced FDA compliance, reduced legal/regulatory risk

Technical Implementation: How the WMS Works

Real-Time Inventory Synchronization Architecture

Order Placement (Shopify/Amazon/EDI)
         ↓
WMS receives order via API (30-second sync)
         ↓
Inventory reserved in WMS (status: "allocated")
         ↓
Inventory update pushed to all channels (60-second sync)
         ↓
Pick list generated with FEFO lot selection
         ↓
Barcode scan confirms lot number during picking
         ↓
Order packed, tracking number generated
         ↓
Shipment notification sent to all channels
         ↓
Inventory status updated: "shipped"

Key Technical Features:

API-First Architecture: RESTful APIs enable real-time data exchange with e-commerce platforms
Webhook-Based Triggers: Inventory changes trigger immediate updates (no polling delays)
Multi-Tenant Inventory: Separate inventory pools by channel while maintaining single physical stock

FEFO Lot Tracking Methodology

Receiving Process:

Inbound shipment arrives with manufacturer lot number and expiration date
Warehouse associate scans lot barcode and enters expiration date into WMS
WMS assigns bin location and updates inventory: SKU, lot number, expiration date, quantity, receive date
Lot appears in “available inventory” pool, sorted by expiration date (earliest first)

Picking Process:

Order imported into WMS and enters pick queue
WMS generates pick list using FEFO logic:
- For each SKU on order, system queries inventory database
- Selects lot(s) with earliest expiration date that have sufficient quantity
- Assigns bin location(s) for picker to retrieve
Picker scans lot barcode during picking to verify correct lot selected
If wrong lot scanned, WMS alerts picker and shows correct bin location
Packing station scans lot barcode again before shipping label application (double verification)

Expiration Date Management:

90-Day Alert: WMS flags lots approaching expiration, client notified for clearance sale or donation
60-Day Threshold: Lots within 60 days auto-excluded from B2B wholesale orders (retailer rejection risk)
30-Day Removal: Lots within 30 days quarantined and removed from all available inventory

Why This Approach Works for Consumables Brands

FEFO vs. FIFO: The Critical Difference

Most 3PLs use FIFO (First In, First Out) because it’s simpler to implement. But for consumables with expiration dates, FEFO is essential:

Scenario	FIFO Result	FEFO Result
Receive Lot A (expires June 2025) on Jan 1	Lot A ships first ✓	Lot A ships first ✓
Receive Lot B (expires March 2025) on Jan 15	Lot A still ships (received first) ❌	Lot B ships first (expires sooner) ✓
Outcome	Lot B expires in warehouse while Lot A ships → waste	Oldest expiration always ships first → no waste

The FEFO Advantage: When lot arrival order doesn’t match expiration date order (common with multi-supplier consumables brands), only FEFO prevents waste.

Client Testimonial

“Switching to Product Fulfillment Solutions was transformative for our operations. We went from constant inventory headaches—overselling during sales, scrambling during recalls, writing off thousands in expired product—to complete confidence in our fulfillment. The real-time visibility means I can check inventory from my phone at midnight if needed. And knowing that the oldest expiration date always ships first? That alone paid for the switch in the first quarter. PFS understands consumables fulfillment in a way our previous 3PL never did.”

— Director of Operations, Health & Wellness Brand

Key Takeaways: When You Need WMS with FEFO Tracking

This case study demonstrates that real-time WMS with FEFO lot tracking is essential when:

✅ You sell consumables with expiration dates (food, supplements, cosmetics, pharmaceuticals)
✅ You manage multiple lot numbers per SKU simultaneously (common with multiple suppliers or production batches)
✅ You sell across multiple channels (DTC, Amazon, wholesale) and need unified inventory
✅ You need regulatory compliance (FDA traceability, recall readiness)
✅ You experience waste from expired products (FEFO eliminates this)
✅ You need both B2B and B2C fulfillment (different order profiles from same inventory pool)

How to Evaluate a WMS Partner for FEFO and Real-Time Visibility

When evaluating 3PLs for consumables fulfillment, ask these questions:

1. FEFO Capability

❓ “Does your WMS support FEFO (First Expired, First Out) or only FIFO?”
❓ “How do you capture expiration dates during receiving?”
❓ “What happens if a picker accidentally selects the wrong lot during picking?”
❓ “Can you show me a sample pick list with lot numbers and expiration dates?”

2. Real-Time Inventory Sync

❓ “What is your inventory sync frequency between your WMS and my sales channels?”
❓ “How do you prevent overselling during high-volume sales events?”
❓ “Can I access real-time inventory visibility through a dashboard or API?”

3. Lot Traceability

❓ “How quickly can you generate a recall report for a specific lot number?”
❓ “Can you trace a shipped order back to the exact lot number and receipt date?”
❓ “What documentation do you provide for regulatory compliance?”

4. Multi-Channel Experience

❓ “Do you have experience with both DTC and B2B wholesale fulfillment?”
❓ “How do you handle different packaging requirements by channel?”
❓ “Can you integrate with EDI for wholesale accounts?”

5. Expiration Date Management

❓ “How do you alert me when products are approaching expiration?”
❓ “What are your policies for shipping products near expiration to consumers vs. retailers?”
❓ “How do you handle clearance or removal of near-expiration inventory?”

Red Flags:

❌ 3PL cannot clearly explain FEFO vs FIFO difference
❌ Inventory sync is “batch-based” (hourly or daily) rather than real-time
❌ No lot-level barcode scanning during receiving or picking
❌ Cannot demonstrate recall traceability in under 30 minutes

About Product Fulfillment Solutions

Product Fulfillment Solutions specializes in consumables fulfillment from our Cincinnati facility, with expertise in FEFO lot tracking, real-time WMS visibility, and hybrid B2B/B2C operations. Our warehouse team is trained in FDA compliance, expiration date management, and multi-channel inventory synchronization.

Our WMS Capabilities:

Real-time inventory sync (30-60 second intervals)
Automated FEFO lot selection and tracking
Lot-level traceability for recall readiness
Cross-channel inventory management (DTC, Amazon, wholesale)
Expiration date alerting and management
EDI integration for B2B accounts

Ready to Eliminate Inventory Guesswork?

If you’re managing consumables with expiration dates and need real-time visibility across multiple sales channels, let’s discuss how ourWMS and FEFO tracking can work for your brand.

Contact Us for a Fulfillment Assessment

Published: Febuary 7, 2026
Category: Case Studies
Tags: WMS, FEFO tracking, real-time inventory visibility, consumables fulfillment, lot tracking, B2B fulfillment, B2C fulfillment, Cincinnati 3PL