Skip to content

A Beginner’s Guide to Warehouse Putaway: Optimizing Inventory Management

Optimizing Inventory Management

Inventory management is a critical component of any business, regardless of its size or industry. However, holding inventory ties up a lot of cash. That’s why good inventory management is crucial for growing a company. Just like cash flow, it can make or break your business.

Efficient inventory management can lead to cost savings, improved customer satisfaction, and increased profitability. In inventory management, warehouse putaway is something that you can’t get rid of. It’s a crucial part to optimize your inventory.

In this article, we’ll talk about using warehouse putaway and optimizing inventory management.

What Is Warehouse Putaway?

Warehouse putaway is a key part of managing inventory in a warehouse. It’s all about putting new stuff in the right place. This involves steps to use the space well, make things easy to find, and keep track of what’s in stock. Let’s learn more about warehouse putaway and why it’s important for managing goods.

In business, you need to make effective use of warehouse space and implement efficient storage processes, which contribute to an efficient supply chain. This, in turn, will influence the future development of your business.

Of course, to execute a successful warehouse putaway, you also require effective warehouse management. Fortunately, numerous warehousing services are available to assist you in organizing your products efficiently.

Before we go too far and learn how to do warehouse putaway, first get to know its types.

3 Types of Warehouse Putaway

In warehousing, there are three common ways to put away items: dynamic putaway, direct putaway, and fixed-location putaway. Each method has its own benefits and considerations.

Dynamic Putaway

This flexible method optimizes storage space and efficiency. It decides where to put items based on real-time factors like available space and product type, making it adaptable to changing inventory needs. However, it relies on robust inventory systems for accuracy.

Direct Putaway

Direct putaway assigns specific storage spots to items as they arrive based on set rules like product type or size. This method is organized and efficient for locating items, but it’s less flexible when inventory changes.

Fixed-Location Putaway

In this method, each item gets a unique storage spot based on its specific characteristics. This maximizes traceability but can be more time-consuming, especially when dealing with changes in inventory.

The choice between dynamic, direct, and fixed-location putaway methods depends on a business’s specific needs. Dynamic is flexible and good for changing inventory, direct is organized but less adaptable, and fixed-location is precise but can be time-consuming. The best method depends on the products and how a business manages its inventory.

You’ve learned about the different types within it. So, where should you begin?

6 Steps to Implementing Warehouse Putaway

Let’s break it down into 6 steps. Here’s the lowdown on each step to help businesses smooth out their warehouse putaway process:

Receiving goods

It all kicks off when you get deliveries. Check the e-commerce goodies for quality, quantity, and any bumps and bruises. Good record-keeping and labeling are the key to keeping your inventory in the clear.

Planning not to waste

Before stuff finds its home in your warehouse, you need a game plan. Think about the products, how much you’ll need, when they expire, and how much space you’ve got. The goal is to get it right and avoid unnecessary product shuffling later.

Assigning specific storage locations

This is like playing matchmaker for your products and storage spaces. Match items with the right storage spots based on their size, weight, and other characteristics. The goal? Maximize space and speed up order filling.

Place it properly and correctly

With the plan in place, it’s time to move things around. Carefully put items where they belong, following a logical path. You might need some cool equipment like forklifts or jacks to get the job done.

Track your goods

Keeping an eye on things is essential. Use Warehouse Management Systems (WMS) or fancy software to track what goes where. This real-time info helps keep orders flowing and errors to a minimum.

Continuous Improvement

Putaway isn’t a one-and-done deal. It’s an ongoing thing. Regularly fine-tune your approach to match your changing needs, make the most of your space, and work more efficiently. Data and performance numbers are your best friends here to spot areas for improvement and make tweaks.

Advantages Benefit of Optimizing Inventory Management

Making Your Warehouse Work Better

Efficient warehouse putaway keeps your storage area organized and optimized. By putting items where they belong, it saves time and effort. This organized setup improves productivity, reduces mistakes, and speeds up access to popular products, making customers happier.

Real-time Data Insights

An efficient putaway process, especially when using technology like warehouse management systems (WMS), gives e-commerce businesses live information. This data helps with smart decision-making and better inventory management. You can track what’s coming in, check stock levels, and see how products are moving. This helps you see trends, predict changes in demand, and decide when to restock or where to store things.

Tracking Your Inventory

Keeping a close eye on your stock is important for smooth warehouse management. An efficient putaway process makes sure every item has a place and is correctly recorded in the system. This precision lets you track what’s moving and how much you have at any time. This helps avoid running out of stock, reduces excess inventory, and makes order filling more accurate, which keeps customers happy.

Using Space Wisely

Efficient putaway makes the best use of your storage space. By putting items in the right places based on what they are and how much you need, you can use your warehouse space better. This means less wasted space, no overcrowding, and a balance between capacity and access. It also means you won’t need extra storage elsewhere, saving you money.

Pro Tip: Simplify the Process with a Warehouse Management System

For your e-commerce business, getting a robust Warehouse Management System (WMS) is a big deal when it comes to improving your putaway process. A WMS automates and brings together various warehouse tasks, like putaway, tracking inventory, and handling orders. It gives you a real-time view of how much stock you have, helps you use your storage space better, and makes everything run smoother.

A WMS helps you manage the putaway process efficiently by creating tasks based on specific rules and priorities. It makes sure items get the right storage spots, taking things like product features, demand, and how easy they are to reach into account. And, it can work seamlessly with other systems, like barcode scanners or RFID tech, to track items accurately and speed things up.

In summary, getting the hang of warehouse organization is a big deal for businesses. It makes your work flow better and keeps customers satisfied. When you receive items, plan where to store them, watch over your inventory, and keep improving.
This keeps your storage tidy, your information up-to-date, your stock in good shape, and makes the most of your space. It’s a win-win for both your business and your customers!

Are you interested in ensuring customer satisfaction? Utilize our comprehensive warehousing platform, where we expertly manage all your goods. Explore our advanced warehousing management system and our top-tier fulfillment service to take advantage of exclusive offers.

Shipper Indonesia

Shipper Indonesia menjemput paket Anda dan mencarikan harga pengirim terbaik dari agen pengiriman ternama. Cukup siapkan pesanan, jadwalkan waktu penjemputan, dan kami akan mengurus sisanya, pengiriman jadi mudah.

Kontak Sales

Student Webinar Class

Seller Webinar Class

Shipper Bootcamp Freshgraduate & Undergraduate

Seller Knowledge