Putaway Best Practices and Common Mistakes

Effective putaway practices help warehouses operate safely, efficiently and economically. Beginners often assume putaway is a simple physical task, but it is a strategic process with measurable impact on labor, space and customer service. Below are practical best practices and the common mistakes to avoid.

Putaway best practices

• Define clear location rules: Use explicit rules for where items should go — by size, weight, SKU velocity, temperature or compatibility. Clear rules reduce guesswork and errors.
• Leverage a WMS or digital tools: Even basic barcode scanning reduces errors and provides visibility. A WMS automates location assignments, enforces rules, and captures confirmations in real time.
• Prioritize slotting by velocity: Place high-turn SKUs closer to pick and packing areas to minimize picker travel. Regularly review slotting as demand patterns change.
• Use proper labeling and identification: Barcodes or RFID tags must be visible, scannable and consistent. Label both the product and the storage location for easier scanning and verification.
• Minimize touches: Design flows to reduce handling — the fewer times a pallet or case is moved, the lower the labor and damage risk.
• Train staff and create standard work: Teach putaway logic, safe handling and equipment use. Standardized procedures increase consistency and safety.
• Plan for special handling: Identify fragile, hazardous, and temperature-sensitive items and route them to appropriate zones immediately after receiving.
• Implement quality checks: Perform spot checks and cycle counts to validate location accuracy and inventory quantities.
• Measure and iterate: Track KPIs such as putaway time per unit, number of touches, location accuracy, and space utilization; use these to drive improvements.
• Design efficient layouts: Group similar products and plan aisles, racking and pick paths to reduce congestion and travel time.

Common putaway mistakes and how to avoid them

• Poor labeling and documentation: Missing or illegible labels cause misplacements. Avoid this by standardizing labels, enforcing scanning on receipt and training staff to report label issues.
• Ignoring SKU velocity changes: A static layout that does not reflect changing demand forces excessive travel. Schedule regular slotting reviews and use recent sales data to reassign locations.
• Over-reliance on manual processes: Manual entries and paper records are error-prone. Even small warehouses benefit from barcode scanners and a basic inventory system to improve accuracy.
• Storing incompatible items together: Mixing hazardous materials with food or putting heavy goods on weak shelving leads to safety and compliance problems. Enforce zone rules and compatibility checks in software.
• Poor space planning: Leaving too much or too little room around pallets and racks reduces usable storage or causes safety hazards. Use dimension data and plan for proper aisle widths and clearances.
• Lack of consistent verification: Not verifying putaway hits inventory accuracy. Require scan confirmations and periodic audits to catch and correct errors early.
• Failing to measure outcomes: Without KPIs you won’t know if changes help. Start tracking a few metrics and review them regularly with operations staff.

KPIs to monitor

• Putaway time: Average time from receipt to location confirmation.
• Touches per unit: How many times a pallet or case is handled before being stored or shipped.
• Location accuracy: Percentage of inventory that is in the recorded location.
• Space utilization: Percentage of usable storage capacity in use.
• Damage rate: Incidents of product damage during putaway or storage.

Simple improvement plan for beginners

1. Start tracking one or two KPIs (e.g., putaway time and location accuracy).
2. Standardize labels and require scanning at receipt and putaway confirmation.
3. Group top 10–20% of SKUs by volume and create dedicated or nearby locations for them.
4. Train staff on the new rules and monitor compliance for a short pilot period.
5. Review results, adjust slotting and rules, and expand improvements gradually.

Real-world example

A regional retail warehouse was experiencing long lead times between receiving and stock availability. Receipts were scattered across the floor, with inconsistent labeling and no location rules. The team introduced basic barcode scanning, assigned dedicated zones for fast movers, and enforced scanning at putaway. Within weeks, putaway time dropped significantly, pickers found items faster, and inventory discrepancies declined.

Final thoughts

Putaway may be behind-the-scenes work, but it has front-line consequences for fulfillment speed and cost. By following clear rules, using the right technology, training staff, and monitoring KPIs, even beginners can make meaningful improvements. Avoid common mistakes like poor labeling, static slotting, and lack of verification, and you will see compound benefits across the entire warehouse operation.