What is putaway in a warehouse?

What is Putaway in a Warehouse?

Putaway in a warehouse is a crucial and comprehensive process that involves moving newly received goods from the receiving area to their designated storage locations within the facility. This encompasses all the warehouse operations that occur between the moment a supply of goods arrives from a vendor and when it is fully stored away in racks and shelves. The putaway sequence often begins even before the goods arrive, typically initiating with the placement of a purchase order with the vendor.

The Importance of Efficient Putaway

Efficient putaway is fundamental to effective warehouse management and the overall health of a supply chain. Its direct impacts include:

• Inventory Accuracy: Proper putaway ensures that inventory records precisely reflect the actual physical location of goods, minimizing discrepancies and improving the reliability of stock counts.
• Space Utilization: Strategically placing items optimizes warehouse space, preventing clutter, avoiding bottlenecks, and maximizing storage capacity.
• Order Fulfillment Speed: When items are stored logically and accessibly, subsequent picking operations become faster and more accurate, directly contributing to quicker order fulfillment and improved customer satisfaction.
• Damage Prevention: Correct handling and appropriate storage methods during putaway significantly reduce the risk of product damage, preserving product quality and value.
• Operational Efficiency: A streamlined putaway process reduces labor costs, minimizes unnecessary movements, and improves the overall flow of goods within the warehouse.

Key Steps in the Putaway Process

While the specific steps can vary based on the warehouse's size, layout, and type of goods, a general putaway process often includes:

1. Receiving and Unloading: Goods arrive at the warehouse's dock and are unloaded from delivery vehicles. This initial stage typically involves verifying the delivery against the purchase order and checking for any visible damage.
2. Inspection and Quality Control: Items are inspected to ensure they meet quality standards, match the order specifications, and are in good condition.
3. Identification and Sorting: Goods are identified, often via barcodes or SKUs, and then sorted based on their final storage location, product type, size, weight, or other relevant criteria.
4. Transportation to Storage Location: Using appropriate material handling equipment such as forklifts, pallet jacks, or automated conveyors, items are moved from the receiving area to their pre-determined storage slots.
5. Placement and Storage: Goods are carefully placed into their final storage positions—whether on shelves, racks, bins, or other designated areas. This crucial step includes immediately updating the warehouse management system (WMS) with the exact location and quantity of the stored items.

Strategies for Optimized Putaway

To enhance the putaway process and maximize warehouse efficiency, various strategies can be implemented:

• Slotting Optimization: This involves assigning storage locations based on factors such as product velocity (how frequently an item is picked), size, weight, and special handling requirements.
  • High-velocity items should be stored in easily accessible locations near shipping or picking zones.
  • Bulky or heavy items are often best stored at ground level or near the receiving dock to minimize handling.
• Cross-Docking: For items that are received and immediately required for outbound shipments, cross-docking bypasses storage entirely. Goods move directly from inbound to outbound docks, significantly reducing handling, storage time, and labor.
• Automated Systems: Utilizing automated guided vehicles (AGVs), robotic systems, or advanced conveyor belts can streamline the transport and placement of goods, reducing manual labor and increasing throughput.
• Batch Putaway: Grouping similar items or items destined for the same storage zone allows for more efficient movement, reducing travel time and optimizing routes for putaway personnel.
• Real-time Tracking: Implementing a robust WMS allows for real-time tracking of inventory from the moment it arrives until it's stored. This provides accurate visibility, prevents misplacements, and enhances overall inventory control.

Benefits of an Optimized Putaway Process

By meticulously managing and continuously optimizing the putaway process, warehouses can significantly enhance their operational efficiency, reduce costs, and improve overall customer satisfaction.