The putaway process is often overlooked when warehouse managers optimize operations, yet it plays a crucial role in increasing overall efficiency. The initial placement of goods impacts every subsequent warehouse process, especially the picking process. If goods are stored in non-optimal locations, travel time during picking increases, delaying order fulfillment. Furthermore, improperly stored cargo can compromise the security of the products and pose safety risks for employees.
According to warehouse managers, putaway and replenishment are among the most inefficient processes, with 45% identifying them as areas needing improvement. Other inefficient processes include inventory control (53%) and picking (47%).
In this article, we’ll explore the best practices and technologies warehouse managers can implement to optimize the putaway process and significantly boost efficiency.
Putaway Process Objective
The primary objective of the putaway process is to efficiently move goods from the receiving dock to their most optimal storage location within the warehouse. This seemingly simple step has a profound impact on overall warehouse efficiency.
Key goals of the putaway in warehouse process include:
- Storing cargo quickly and efficiently
- Minimizing travel distance within the warehouse
- Ensuring the security of goods and the safety of employees
- Maximizing warehouse space utilization
- Making cargo easy to locate and track
- Storing goods in locations that allow for quick and easy retrieval during the picking process
When the putaway process is not properly optimized, it can negatively affect the productivity of the entire warehouse operation.
Best Practices to Optimize the Putaway Process
Collect Data & Introduce Real-Time Analytics
Data collection and analysis are fundamental to improving putaway in warehouse operations. To optimize this process effectively, gathering accurate data on various factors such as cargo size, weight, height, receiving and shipping frequency, cargo type (e.g., hazardous materials, perishable items, or high-value goods), order volume, and available storage space is essential. The more precise and comprehensive your data, the more efficient your warehouse will be.
A robust warehouse management software (WMS) system is central to this effort. To support putaway strategies, the WMS must have two critical capabilities:
- Flexible Data Collection: The WMS should allow for seamless integration of multiple data points, such as weight, dimensions, and cargo type, ensuring it can handle a variety of goods and warehouse requirements.
- Ongoing Data Analysis: Continuous real-time analysis helps determine the most optimal storage locations, taking into account factors like warehouse traffic, picking frequency, and available space.
Automating data collection is the next step toward efficiency. By minimizing manual data entry, warehouses can reduce errors and lower operational costs. For instance, using integrated digital scales to capture weight or a pallet or parcel dimensioning system to gather cargo dimensions ensures that data is collected accurately and efficiently without the risk of human error.
Additionally, real-time analytics allow warehouse managers to make on-the-spot decisions regarding space allocation, helping to fine-tune the putaway method and further improve warehouse efficiency.
By leveraging advanced technologies and integrating real-time data into the putaway process, managers can ensure that inventory is placed in the most suitable locations, improving accessibility and reducing overall labor time.
Monitor Storage Capacity & Space Availability
Effectively monitoring storage capacity and space availability is essential to maintaining an optimized putaway process. By ensuring that space is efficiently utilized, warehouse managers can reduce unnecessary travel time and eliminate delays caused by a lack of storage availability in certain areas of the warehouse.
To keep track of storage space, many warehouses rely on warehouse management software (WMS) equipped with barcode scanners and bin location systems. These systems help track the usage of space across various zones, providing a real-time overview of available capacity. However, this method can be prone to human error, as it requires warehouse staff to manually scan each bin location and the cargo during every putaway or pick task. Mistakes, missed scans, or delays in updating the system can result in inaccurate inventory tracking and inefficient use of storage space.
To overcome these challenges, forward-thinking warehouses are increasingly adopting more advanced solutions, such as RFID technology. RFIDs automatically record putaway and retrieval tasks without requiring human intervention, significantly reducing errors. This technology, when combined with sensors and real-time data analytics, creates a robust system that can track warehouse capacity and space usage with high precision.
By incorporating these advanced technologies, warehouse managers can implement more dynamic and flexible putaway strategies, allowing them to adjust storage locations on the fly and avoid bottlenecks. This dynamic approach is particularly useful when managing seasonal inventory shifts or high-volume goods that require temporary storage closer to picking areas. As this ecosystem of technologies evolves, warehouses will have access to increasingly sophisticated tools that deliver real-time tracking and optimization of space across the facility.
Keeping close tabs on storage capacity and availability not only reduces travel time within the warehouse but also ensures that warehouse space is used to its full potential. The integration of dynamic putaway methods and automated tracking solutions is key to achieving an efficient putaway in warehouse process.
Reduce Traveling Time
Reducing travel time is a critical element in optimizing the putaway in warehouse process and overall warehouse operations. Since travel distance accounts for 60% to 70% of labor costs in a warehouse, minimizing the time it takes for goods to move from the receiving area to their storage location can lead to significant cost savings and improved operational efficiency.
Travel distance in a warehouse is 60% to 70% of labor cost.
One of the most effective ways to reduce travel time is by conducting an ABC analysis. This analysis helps warehouse managers categorize inventory based on order frequency and volume. High-frequency items (A-class) can then be stored closer to picking and shipping areas, while less frequently moved items (C-class) are placed in less accessible locations. By adjusting the warehouse layout according to this analysis, managers can drastically cut down on unnecessary travel, leading to faster putaway and picking processes.
It is important to continuously monitor order volume and shipping frequency to ensure that the warehouse layout remains optimized. Sudden shifts in demand or seasonal changes in inventory can require immediate adjustments to prevent inefficiencies from creeping back into the system.
Another method to reduce travel time is by defining optimal routes within the warehouse. Using warehouse management software (WMS), managers can map out the shortest paths from receiving areas to storage locations, considering factors like warehouse traffic, potential congestion points, and other simultaneous processes that could lead to conflicts or delays.
Additionally, advanced putaway strategies, such as dynamic putaway, can further streamline the process. Dynamic putaway allows goods to be stored in the first available location that meets certain criteria, minimizing unnecessary travel and reducing the time goods spend in transit within the warehouse. This method provides flexibility, especially when dealing with fluctuating inventory volumes.
By focusing on reducing travel time and implementing these strategies, warehouse managers can significantly improve labor efficiency and cut operational costs, leading to a smoother and faster putaway process.
Use Direct Putaway When Possible
A key best practice for optimizing the putaway in warehouse process is to implement direct putaway whenever possible. This method involves moving cargo directly from the receiving area to its final storage location, bypassing any staging areas. By eliminating the need for temporary staging, direct putaway not only speeds up the overall process but also reduces handling, freeing up valuable space and reducing labor costs.
In addition to saving time, direct putaway minimizes the risk of errors or delays that can occur when goods are moved through multiple stages. Fewer touchpoints mean less risk of misplacement or damage, ensuring that inventory is safely and efficiently stored. This method is particularly beneficial in high-velocity warehouses where rapid movement of goods is essential to maintaining operational efficiency.
To successfully implement direct putaway, it is crucial that the warehouse management software (WMS) can assign final storage locations as soon as cargo arrives. This requires integration with systems like advance shipment notices (ASN), or at minimum, the ability to designate a location at the point of delivery at the receiving dock. Without this capability, it becomes challenging to run an effective direct putaway system, as cargo may end up waiting for an assigned location, which defeats the purpose of the process.
Moreover, using direct putaway contributes to overall space optimization within the warehouse. Since goods are immediately placed in their final locations, warehouse space can be better utilized, and the need for temporary holding areas is greatly reduced. This method, combined with strategic use of putaway strategies, can have a significant impact on warehouse efficiency, especially when dealing with large volumes of incoming goods.
Direct putaway is a powerful tool for reducing the time and space required to store inventory. With the right technology and planning, warehouses can streamline their processes, cut down on unnecessary handling, and increase efficiency across the board.
Use Fixed & Dynamic Locations
To optimize the putaway in warehouse process, warehouse managers can leverage a combination of fixed and dynamic locations when conditions allow. This flexible approach enables warehouses to efficiently manage both predictable and fluctuating inventory levels while maintaining order and accessibility.
Fixed Locations
A fixed location is a pre-assigned storage space within the warehouse, such as a specific zone, aisle, or bin, determined by set criteria. This assignment might be based on factors like product category, customer, or even the item’s final destination. Fixed locations simplify the putaway process by allowing warehouse clerks to memorize where certain types of goods are stored, reducing search time during both the putaway and picking processes.
For instance, high-demand products or regularly picked items might be consistently stored in designated areas to ensure quick access. This predictable storage arrangement is particularly useful in warehouses that handle stable or repetitive product lines, as it minimizes decision-making and streamlines operations. By utilizing fixed location putaway, warehouses can significantly enhance efficiency and reduce labor costs associated with searching for specific products.
Dynamic Locations
In contrast, dynamic locations offer greater flexibility by allowing goods to be placed in the first available space that meets storage criteria. This method is especially beneficial in high-turnover environments or warehouses dealing with variable or seasonal inventory levels. With dynamic locations, goods can be stored closer to picking areas during periods of high demand, and then repositioned or replaced with other items when volumes shift.
The success of dynamic putaway depends on the warehouse’s ability to accurately track inventory and storage locations in real-time. A warehouse management software (WMS) system is essential for managing dynamic locations, as it ensures that goods are properly logged and can be easily located when needed. Without reliable tracking, dynamic locations could lead to misplaced inventory or delays in the picking process.
By using a mix of fixed and dynamic putaway strategies, warehouses can achieve a balance between order and flexibility. Fixed locations provide predictability and speed for frequently accessed goods, while dynamic locations offer adaptability for high-volume or temporary stock. Together, these approaches allow warehouse managers to optimize space, reduce travel time, and maintain operational efficiency, regardless of fluctuating inventory needs.
Keep the Warehouse Clean & Organized
Lastly, maintaining a clean and organized warehouse or distribution center is fundamental to ensuring an efficient putaway in warehouse process. A cluttered environment can drastically slow down operations, as clerks may struggle to find available storage locations, waste time moving goods to clear space, or navigate around obstacles. This not only reduces the speed of putaway but also raises safety concerns for employees and increases the risk of damaging inventory.
A disorganized warehouse environment can negate even the most advanced putaway strategies or cutting-edge technology. Without proper organization, the benefits of real-time data analytics, optimized routes, and warehouse management software (WMS) are diminished. In contrast, a well-organized, clean facility enhances workflow, reduces labor time, and minimizes errors—leading to safer, faster, and more accurate putaway processes.
Conclusion
Optimizing the putaway process is a crucial yet often overlooked aspect of warehouse operations. By implementing best practices such as collecting data with real-time analytics, monitoring storage capacity, reducing travel time, utilizing direct putaway methods, and effectively combining fixed and dynamic storage locations, warehouse managers can significantly improve overall efficiency.
However, even the most efficient systems rely on the foundation of a clean and well-organized warehouse. Without it, time-saving technologies and strategic putaway methods will be undermined by clutter, inefficiency, and safety risks. In short, attention to detail, careful planning, and the mindful execution of these strategies are the keys to unlocking the full potential of your warehouse operations.
By optimizing the putaway in warehouse process, you not only streamline daily operations but also enhance the overall performance of your warehouse—leading to faster order fulfillment, reduced labor costs, and a safer working environment. If you’re ready to take the next step in optimizing your warehouse, explore additional best practices for improving storage utilization to maximize your space and efficiency.
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