Exploring Putaway Strategies and its Advantages for Warehouse

When the crucial putaway process in warehouse management is executed properly, it efficiently organizes inventory, ensuring easy access to products and reducing picking time. However, a poorly managed putaway can disrupt operations, waste time, and create safety risks for your team.

Inefficiencies in the putaway process can have a major impact on overall warehouse productivity. To prevent backorders, stock shortages, and ensure employee safety, having an efficient putaway process is essential. This is particularly vital for business success in Singapore’s competitive landscape.

In this article, we’ll discuss putaway methods and benefits, examine different approaches, and reveal how WMS (warehouse management software) can enhance your warehouse putaway system.

Read on to boost warehouse efficiency, streamline picking, packing, and shipping, and reinforce the core of your business operations!

What is Putaway?

In warehouse management, putaway is a critical process that ensures efficient, organized, and smooth operations. But what exactly is putaway meaning? Putaway meaning refers to the supply chain practice of moving products from the receiving area to their designated storage locations within the warehouse, marking the start of the inventory management cycle.

This process involves moving goods from the receiving dock and strategically placing them in assigned storage spots based on product characteristics and demand patterns, all governed by specific putaway rules. Putaway rules optimize product placement by considering factors such as category, weight, volume, and storage needs.

A well-executed putaway process maximizes storage space, safeguards the quality of goods, and enhances warehouse efficiency. Effective putaway strategies streamline operations, speed up retrieval times, reduce damage risks, and improve overall inventory management.

The Key Advantages of Utilizing Putaway Systems in Your Warehouse

Implementing an efficient warehous putaway process in your warehouse offers numerous benefits that can turn inventory management from a major hurdle into a strategic advantage. These benefits include:

• Optimized space usage: Effective warehouse putaway methods ensure that warehouse space is fully utilized. By systematically organizing inventory, you can maximize storage capacity and reduce clutter. 
• Better inventory accuracy: Correctly put-away goods lead to more precise inventory tracking and management. This helps prevent both overstocking and stockouts, maintaining optimal inventory levels. 
• Improved operational efficiency: A well-structured warehouse putaway process streamlines warehouse workflows, resulting in faster retrieval, quicker order fulfillment, and overall operational efficiency. 
• Decreased risk of damage and loss: Properly storing goods minimizes the chance of damage during storage and handling, lowering related costs. 
• Increased worker safety: Efficient putaway systems contribute to a safer workplace by preventing accidents and injuries, ensuring a secure environment for employees.

Types of Putaway Methods

Different putaway methods are employed depending on the warehouse’s operations, the types of products being stored, and the specific strategies in place. Below is a detailed look at some of the most common warehouse putaway methods:

Purchase order-based putaway

In this method, items are stored according to their purchase order information. This approach is ideal for warehouses that deal with large shipments arriving infrequently. It simplifies the process of cross-referencing items with purchase orders and facilitates easier auditing. This method ensures that items from a specific order remain together, streamlining both storage and retrieval based on order details.

SKU-based putaway

This method organizes items by Stock Keeping Unit (SKU), a highly effective approach for warehouses managing a large and diverse inventory. Storing goods by SKU allows for precise tracking, simplified inventory management, and quick retrieval, especially when handling many variations of products. This method is particularly useful for improving accuracy and efficiency in picking and replenishment processes.

Product type-based putaway

 Organizing items by their product type enhances storage and retrieval efficiency. In this method, items are grouped based on their categories or characteristics, making it easier to find and retrieve similar items. This approach works best for warehouses that deal with a wide range of products, ensuring that each category is stored in a dedicated space, which simplifies sorting and picking.

Directed putaway

Directed warehouse putaway is a highly efficient method where goods are moved directly from the receiving area to their final storage location. This minimizes handling and the time it takes for products to reach their storage spot. To implement this method successfully, accurate, real-time data is essential to ensure that items are placed in optimal locations based on demand and space availability. Directed putaway enhances operational efficiency and reduces human errors during storage.

Common Difficulties when Managing Putaways

The following is a more in-depth explanation of the four difficulties often faced in managing unused goods in a warehouse:

Lack of standardized system

One of the biggest problems that often occur in storage management is the absence of clear standard procedures. When there are no clear guidelines for storing goods, each worker may use a different way, causing uncertainty and inconsistency in the placement of goods. 

Without specific SOPs (Standard Operating Procedures) for different types of products and storage areas, items can be placed haphazardly, leading to difficulties in finding items when needed. This disorganization also makes it difficult to audit and manage inventory efficiently, and increases the risk of human error, such as misplaced or misrecorded items.

Non-optimal space utilization

Non-optimal utilization of storage space is a common challenge in many warehouses. When items are not stored based on their characteristics such as size, weight, or product type, space in the warehouse often becomes inefficient. 

Larger items may be placed in areas that should be filled by smaller items, or low-volume items are placed in premium locations that are easily accessible, while more frequently needed products are placed in harder-to-reach locations. 

This not only limits storage capacity but also slows down workflow, as staff need to find additional space or manually rearrange items. Poor space utilization also increases the risk of excessive stacking, which can affect safety and productivity in the warehouse.

Lack of real-time monitoring

The absence of technology such as Warehouse Management System (WMS), RFID, or barcode tracking can lead to inaccuracies in tracking the location and status of goods. Without real-time monitoring, warehouse managers may have difficulty in knowing exactly where a product is or how much stock is available. This can lead to serious problems such as overstocking, stockouts, and delays in the picking process. 

Furthermore, without real-time data, it becomes difficult to adjust to changes in demand or distribution of goods. Lack of inventory visibility also makes auditing and reporting more complicated.

Placement of goods that are not in line with demand

Errors in placing items in the warehouse often occur when high-demand items or frequently picked products are instead stored in hard-to-reach places. This slows down the picking process, especially in situations where orders need to be fulfilled quickly. 

Without proper analysis of demand patterns, high-rotation items may be placed in parts of the warehouse that are far from the picking area, resulting in longer picking times and increased operational costs. 

How to Optimize Putaway Process in Your Warehouse

Optimizing the putaway process is a critical aspect of improving efficiency and productivity in warehouse operations. By refining this process, warehouses can enhance overall operational flow, reduce errors, and improve inventory management. Here are several strategies to optimize the putaway process in your warehouse:

Utilize advanced technology

Incorporating a Warehouse Management System (WMS) is one of the most effective ways to optimize putaway operations. WMS tools can automate and streamline various aspects of the process, such as assigning the best storage locations based on real-time data, product characteristics, and demand. 

One example of a good quality WMS that you can use is HashMicro. This system is equipped with various comprehensive features, such as product dimension tracking, putaway strategy settings, warehouse pallet racking, and many more. 

Curious to try the HashMicro system? You can try the free demo provided by clicking here.

If you are curious about other warehouse systems, you can read our previous article that discusses warehouse management system philippines recommendations.

Standardize putaway procedures

Establishing standardized operating procedures (SOPs) for the putaway process ensures that all warehouse staff follow consistent, optimized methods when handling and storing inventory. These SOPs should include clear, detailed guidelines on how to handle different product types, the best storage techniques for maximizing space, and specific safety protocols to prevent damage or accidents. 

By providing staff with structured workflows, you can create a more organized and efficient warehouse environment, where tasks are carried out in a uniform manner.

Invest in staff training

A well-trained workforce is essential for executing an optimized putaway process. Employees should be regularly trained on the latest warehousing techniques, technologies, and safety measures. Continuous training not only improves their skills in handling the putaway process but also enhances their ability to adapt to new technologies and systems, such as WMS. By keeping staff up to date with the best practices and tools available, you can ensure that the putaway process is executed with maximum efficiency and minimal errors.

Leverage cross-docking when possible 

Cross-docking is a powerful strategy for improving warehouse efficiency, especially for time-sensitive or high-demand products. This method involves transferring products directly from the receiving dock to the shipping dock, bypassing the traditional storage phase. 

Cross-docking significantly reduces handling time, labor, and storage costs, making it ideal for goods that need to be shipped out quickly. Implementing cross-docking when applicable can free up warehouse space and expedite the entire supply chain process.

Regularly analyze and refine the process

Continuous improvement is key to maintaining an optimized putaway process. Regularly reviewing the efficiency of the current process allows you to identify any bottlenecks or areas where improvements can be made. 

Utilizing key performance indicators (KPIs), such as putaway speed, accuracy, and storage utilization, provides valuable insights into how well the process is working. Data-driven decisions can then be made to refine and adjust the putaway process, ensuring ongoing optimization and alignment with business goals.

Implementation of HashMicro Warehouse System for More Efficient Putaway Management

HashMicro Warehouse Management Software (WMS) offers a powerful solution that simplifies and optimizes the complexity of the putaway process. Apart from having specific features that help with putaway management, the system also has the advantage of a user-friendly interface. This will have an impact on the implementation process which will not take a long time. 

Furthermore, this system can also be easily integrated with other systems, such as accounting, procurement, HRIS, and others. With easy integration, you will be one step closer to managing data from various departments in one platform. 

Here’s how HashMicro WMS can improve your warehouse’s putaway operations:

1. Automated Data Entry: Equipped with barcode scanning and RFID technology, HashMicro WMS automates data capture, minimizing the time and errors that often occur with manual entry processes.
2. Real-Time Inventory Tracking: HashMicro WMS provides real-time visibility into inventory levels and storage locations, offering up-to-date information that enhances the efficiency of the putaway process by ensuring goods are stored in the best possible locations.
3. Optimized Storage Recommendations: The system automatically suggests optimal storage spots by considering factors such as product type, size, and access frequency. This feature ensures better utilization of warehouse space and faster retrieval times.
4. Seamless Integration with Other Systems: HashMicro WMS integrates effortlessly with purchasing and supply chain systems, enabling a cohesive approach to inventory management. This ensures that the putaway process aligns smoothly with broader warehouse and supply chain operations, driving greater overall efficiency.

Conclusion

In summary, integrating an efficient putaway process with the advanced features of HashMicro WMS is a game-changer for businesses aiming to achieve top performance in Singapore.This combination enhances warehouse operations by maximizing efficiency, minimizing errors, and optimizing space usage, ensuring you stay ahead in a competitive market. 

Implementing a well-planned putaway system, whether based on purchase orders, SKU, product type, or direct putaway, is essential for maintaining an organized and efficient warehouse. When paired with HashMicro WMS, these processes become even more streamlined, offering real-time tracking, reducing manual errors, and boosting overall productivity. 

For more details about this system, you can click the banner below!