Putaway

Putaway is the warehouse process of moving received goods from the receiving dock to their designated storage locations. Efficient putaway ensures inventory is stored in optimal locations for quick retrieval, reduces warehouse congestion, improves labor efficiency, and supports inventory accuracy throughout the fulfillment process.

Putaway is a critical step in warehouse operations because it directly impacts picking speed, inventory visibility, storage utilization, and overall warehouse productivity.

How the Putaway Process Works

Putaway begins immediately after inbound inventory is received, inspected, and entered into the Warehouse Management System (WMS).

Typical putaway workflow:

1. Receiving Inventory – Products arrive at the warehouse and are unloaded at the dock.
2. Inspection & Verification – Warehouse staff verify quantities, SKUs, and product condition.
3. WMS Assignment – The Warehouse Management System assigns storage locations based on inventory rules and warehouse layout.
4. Transport to Storage Location – Workers move inventory using forklifts, pallet jacks, conveyors, or automated systems.
5. Inventory Confirmation – The inventory is scanned into its final storage location to maintain accurate inventory records.

Why Putaway Is Important

An effective putaway process helps warehouses:

• Improve inventory accuracy
• Reduce picking and travel time
• Maximize warehouse space utilization
• Minimize misplaced inventory
• Improve order fulfillment speed
• Reduce dock congestion and inbound bottlenecks

Poor putaway practices can lead to inventory discrepancies, slower fulfillment, and increased labor costs.

Common Putaway Strategies

Putaway Strategy	Description
Fixed Location Putaway	Products are always stored in the same designated location
Dynamic Putaway	Inventory is assigned to the best available storage location based on space and demand
Directed Putaway	The WMS determines optimal storage locations automatically
Random Putaway	Inventory is stored wherever space is available
Zone-Based Putaway	Products are assigned to specific warehouse zones based on category or velocity

Factors That Influence Putaway Decisions

Warehouse systems may determine storage locations based on:

• SKU velocity (fast-moving vs slow-moving items)
• Product size and weight
• Temperature requirements
• Hazardous material classifications
• FIFO or FEFO inventory rotation rules
• Product compatibility and storage restrictions

For example, fast-moving SKUs are often placed closer to picking and shipping areas to improve fulfillment speed.

Putaway vs. Receiving

Putaway	Receiving
Moves inventory into storage locations	Accepts and unloads inbound inventory
Focuses on warehouse organization	Focuses on shipment verification
Occurs after receiving inspection	First step in inbound warehouse operations
Updates final inventory location	Confirms inbound inventory arrival

Technology Used in Putaway Operations

Modern warehouses use several technologies to improve putaway efficiency:

• Warehouse Management Systems (WMS)
• Barcode scanning
• RFID tracking
• Mobile warehouse devices
• Forklift-mounted scanners
• Automated storage and retrieval systems (AS/RS)

These systems improve inventory visibility and reduce manual errors during storage operations.

Example of Putaway in Action

A 3PL warehouse receives a shipment of consumer packaged goods at its receiving dock. After inspection and barcode scanning, the WMS directs warehouse staff to place fast-moving products in forward picking locations while reserve inventory is stored in pallet racking. Once stored, inventory locations are updated in real time within the system.

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