Using an optimized putaway (storage) strategy will make shipping steps easier for warehouse staff. Come join us in a discussion about the basic concepts of warehouse storage along with the best methods to increase the efficiency of the process. Get to know more in this TransTRACK article!
Putaway, what does that mean?
The putaway process is a crucial element in running warehouse operations. This function ensures that goods arrive at the appropriate location for easy picking and optimal inventory management. Optimizing this stage can be a test in itself, even for warehouse managers who have extensive experience.
How important is Putaway to warehousing?
Carrying out putaway procedures in warehouses with a level of optimization can bring a number of valuable benefits to e-commerce businesses. Let’s explore some of the main advantages gained from implementing a putaway strategy in warehouse management:
Optimizing Warehouse Layout
Implementing efficient goods placement practices plays an important role in establishing an orderly and optimal warehouse layout. By strategically positioning products according to their characteristics and needs, e-commerce businesses can reduce unnecessary movement of goods and time in the warehouse.
This simpler layout increases operational efficiency, reduces picking errors and improves overall productivity. This approach also facilitates navigation and faster access to products in high demand, ultimately resulting in faster order fulfillment and increased customer satisfaction levels.
Supports Regular Stock Monitoring
The next benefit of putaway is tracking stock precisely in an effort to manage the warehouse efficiently. An optimal inventory management process ensures that each product is placed in its assigned location and recorded accurately in the inventory management system. This level of accuracy allows companies to monitor stock movements and keep an eye on inventory levels whenever necessary. By maintaining proper stock information, online businesses are able to avoid stock-outs, reduce the risk of excess inventory, and plan inventory replenishment efficiently. More than that, this also supports accuracy in fulfilling orders, reduces the potential for delivery errors, and increases customer satisfaction levels.
Optimize Effective Use of Storage Space
Efficient warehouse placement practices result in maximum utilization of available storage space. By strategically placing products into suitable storage locations based on their characteristics and demand patterns, companies can maximize vertical and horizontal use of space within the warehouse.
This approach helps reduce space waste, avoid crowding or underutilization of certain areas, and ensures an optimal balance between storage capacity and accessibility. Efficient use of space also reduces the need for off-site storage, thereby reducing costs associated with adding facilities or expanding warehouses.
Types of Putaway Warehouse (Based on Space)
There are a variety of putaway strategies that e-commerce companies can implement, depending on their specific needs and operational characteristics. Three types of warehouse arrangement methods that are commonly used are dynamic arrangement, direct arrangement, and arrangement at a fixed location. Each of these approaches provides different benefits and considerations, which we will examine in more detail.
Dynamic release of goods is a flexible and versatile approach applied in many warehouses to maximize the use of storage space and increase efficiency.
In dynamic withdrawal, the position of goods is not fixed in the warehouse. Instead, item locations are determined based on real-time factors such as space availability, proximity to the pickup area, and product characteristics.
One of the main advantages of a dynamic recall approach is its ability to adapt to changes in inventory levels and storage requirements.
Direct Putaway, also known as conventional storage or placement at a fixed location, adopts a predetermined system of assigning specific locations to store incoming goods. Each product is assigned a fixed location within the warehouse based on predefined rules, such as product type, size, or movement rate. When new inventory arrives, the items are immediately placed in the designated storage location.
This method provides clear advantages in terms of organization and ease of searching for items. Because products have predetermined locations, warehouse staff can easily find and retrieve items, making the picking process easier.
This putaway approach is appropriate for warehouses that continuously receive identical quantities and types of products.
Although at first glance it may not seem that important, implementing putaway in the warehouse is the only way to ensure faster order fulfillment and more efficient warehouse management. Through putaway management in the warehouse, you can form an allocation system that is more responsive to all types of products that may be received in the future. This approach also reduces the risk of misplacement or inventory loss, and ensures the safety of your entire staff.
Additionally, you have the option to adopt a Warehouse Management System (WMS) to ensure that all processes in your ecommerce business are centralized and executed automatically. This can help you achieve greater efficiency, accuracy and speed. This approach optimizes warehouse layout, provides real-time data insights, facilitates accurate stock tracking, and optimizes storage space utilization.
In carrying out warehouse operations, selecting appropriate technology has an important role in ensuring optimal efficiency and safety. One technology that can support warehouse management is the Fleet Management System (FMS) offered by TransTRACK. This FMS is a fleet management system that helps warehouse managers monitor and manage delivery fleets more efficiently.
In operating a warehouse, the right technology selection policy is the key to increasing efficiency and maintaining the required level of security. Through the use of the Fleet Management System from TransTRACK, warehouse managers can carry out real-time monitoring of the delivery fleet, increase the efficiency of the delivery process, and reduce potential risks such as loss or theft of goods.