Putaway: A Beginner's Guide to What It Is and Why It Matters

What is putaway?

Putaway is the set of activities that occur after goods arrive at a warehouse and are unloaded from inbound transportation. The goal is to transfer items from the receiving or staging area into storage locations where they can be safely kept and later retrieved for picking, packing, or shipping.

Why putaway matters

Good putaway practices reduce the time it takes to find and pick items, improve inventory accuracy, lower handling costs, and make better use of the available space. Poor putaway increases travel time for warehouse workers, raises the risk of errors, creates congestion at receiving docks, and can lead to stockouts or misplaced goods.

Basic steps in a typical putaway process

1. Receive and inspect goods: Verify quantities, check documentation, and inspect for damage.
2. Label and record: Apply barcodes or RFID tags if needed and record the arrival in the warehouse management system (WMS) or inventory ledger.
3. Stage items: Place goods temporarily in a staging area for consolidation or quality checks.
4. Determine storage location: Choose the most appropriate slot based on product attributes, demand, and storage rules.
5. Transport to location: Move items using forklifts, pallet jacks, conveyors, or manual carts.
6. Confirm and update system: Scan or record the final storage location to update inventory records.

Common putaway strategies

Beginners should know there are several strategies warehouses use to decide where goods should be stored

• Fixed location putaway assigns a dedicated slot to a specific SKU. This is simple and predictable but can waste space for slow-moving items.
• Random or floating putaway places items in any available suitable slot. It optimizes space utilization but relies heavily on an accurate WMS to locate items quickly.
• Zone-based putaway stores items within a specific zone (by product type, size, or handling requirement). It strikes a balance between predictability and space efficiency.
• Class-based or ABC putaway places fast-moving (A) items in the most accessible locations, medium-moving (B) items in nearby zones, and slow-moving (C) items in less accessible spaces.

Role of technologyRole of technology

For beginners, the most important tech to know about is the warehouse management system. A WMS guides putaway decisions, directs workers with optimized routes, enforces storage rules, and updates inventory in real time. Barcode scanners and RFID readers speed up confirmation and reduce human error. In larger operations, conveyors, automated guided vehicles (AGVs), and robotics help move items from receiving to storage without manual lifting.

Key performance indicators (KPIs) to track

Monitoring KPIs helps you know if putaway is working well. Useful KPIs include:

• Putaway time – average time from receiving to storage confirmation.
• Putaway accuracy – percentage of items placed in the correct location on first attempt.
• Travel distance – average distance staff travel during putaway tasks.
• Space utilization – how efficiently the warehouse footprint is used.

Everyday example for beginners

Imagine a small e-commerce warehouse receiving a pallet of t-shirts. The receiving clerk checks quantities, applies barcode labels, and scans each carton into the WMS. The WMS recommends putting best-selling sizes in a front rack near the packing stations and slower-moving sizes on a higher shelf. A warehouse associate moves cartons to the recommended slots, scans to confirm the locations, and the WMS updates inventory. Later, when a customer order for a popular size is received, the picker quickly finds the item in the front rack, reducing picking time and shipping the order faster.

Beginner tips

Start with a simple putaway rule set and gradually refine it as you collect data. Use ABC classification to prioritize where the fastest-selling SKUs go. Maintain clear labeling and keep staging areas organized to avoid bottlenecks. Even in a small operation, a basic WMS or inventory app can dramatically reduce errors compared with manual spreadsheets.

Common challenges

New operations often struggle with inconsistent labeling, incomplete system updates, and selecting storage strategies without usage data. Frequent inventory counts, simple naming conventions for locations, and routine training help address these issues. As your operation grows, consider investing in better software and automated equipment to maintain speed and accuracy.

Bottom line

Putaway is a foundational warehouse activity that directly affects almost every downstream process. For beginners, focusing on clear procedures, consistent recording, and simple slotting strategies will yield immediate benefits in productivity and accuracy. Over time, measure performance, refine rules, and introduce technology to scale putaway efficiently.