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In warehouse operations, the putaway process ensures that items get to the right location for easy access and efficient inventory management. Optimizing this process can be challenging, but doing so can put you a step ahead of your competition in the marketplace.
Key Takeaways
With so many variables at play, streamlining the putaway process can be difficult. Before discussing best practices and optimization, let’s review some basic terms.
The putaway process plays a crucial role in creating a clean and organized warehouse. A warehouse that’s disorganized, or not taking certain details into consideration, is going to suffer. Understanding the terms and benefits of this practice can help streamline warehousing.
Examining the fundamentals of this process will help you in the process of optimization.
Putaway in a warehouse refers to placing received goods into designated storage areas. Having such areas makes things like fulfillment easier because there is a logical layout.
The areas where good are stored are chosen based on several factors, including:
Efficient putaway methods facilitate an organized inventory and optimal order fulfillment. For warehouses that also use pick and pack or kitting, this is very useful. The less time your workers need to spend running back and forth, the faster your fulfillment process.
Optimizing your putaway process contributes to accurate inventory tracking, fewer employee errors, and increased order fulfillment speed. Before deciding how best to optimize this process, let’s look at the three most common types of putaway in warehouses.
Take the time to fully analyze your business practices before choosing the best putaway method for your warehousing needs. If you’re still unsure, consider consulting or contracting with a 3PL service like Fulfillment and Distribution. We have years of experience with the warehouse putaway process.
To optimize this process, it’s important to follow some best practices for putaway. These will ensure efficient inventory management and streamlined operations.
Some of the best practices for warehouse putaway include:
These best practices will lead to more efficient warehousing and, by extension, increased profits. At the end, you and your customers reap the benefits.
Related: 5 Warehousing Strategies That Can Increase Business Profits
When determining how your putaway process should be executed, there are three main elements to consider:
Let’s take a closer look at these and the way they can impact your warehouse operations as a whole.
Receiving and putaway processes go hand in hand in warehouse operations. As goods arrive, they must reach the receiving area and promptly move into their designated storage locations. Organization during this stage is vital to ensure products reach the right areas.
The relationship between receiving and putaway mostly comes down to accurate labeling of goods as they enter the warehouse. The labels should contain information such as:
Comprehensive labeling makes receiving a faster and more accurate process, which makes the handoff to putaway workers in the warehouse a smooth transaction free of complications.
Related: 10 Reasons You Need to Outsource Inventory Management to a 3PL
Strategies like ABC analysis can determine the best storage locations for different products. This type of analysis separates inventory into three separate categories that are largely defined by a particular product’s importance to your business. These categories are:
After using this assessment, you may find that a blend of the three methods mentioned earlier in the article (dynamic, directed, and fixed) could be advantageous. For instance, products in the C column could be stored in fixed locations farther from the assembly/packaging, line, leaving premium space free to be used dynamically for faster-moving A and B tier items.
Technology and automation also improve warehouse putaway strategies. They can have a positive impact on factors such as:
One piece of technology that contributes to both of these factors and being able to make data-driven decisions is a warehouse management system (WMS).
Integrating a WMS brings many benefits, and helping you put together a smart putaway strategy is just one of them. In fact, if you do find that dynamic warehousing is right for you, a WMS is mandatory to track inventory in real time.
Warehouse management software improves inventory visibility and data capture. In addition, barcode scanning and inventory tracking can improve accuracy and efficiency in warehouses.
If you own a growing business, you may find that trying to address logistics needs on your own simply isn’t feasible. The warehousing and distribution process is a skill set all on its own, and outsourcing those services could give you the time and bandwidth you need to address other business needs, like improving your product and meeting fluctuating consumer demands.
That’s where we come in.
Fulfillment and Distribution can handle your business’s logistics in part or in whole. Whether you’re looking for expert consultations to develop your own strategy or full 3PL warehousing, our team stands ready to make your inventory control process efficient and trouble-free.
Our full list of services includes:
Give us a call at (866) 989-3082 or submit a quote through our website. We’re ready to help you meet your logistics and transport needs today!
