Putaway Strategies: Types and How to Choose

Choosing a putaway strategy is a critical decision for warehouse managers because it shapes daily workflows, labor needs, and space utilization. A putaway strategy is the set of rules and methods used to decide where items are stored after they arrive. Simple rules can work in small operations; larger or more complex facilities use a combination of strategies guided by a Warehouse Management System (WMS).

Common putaway strategies

• Dedicated putaway: Each SKU has a fixed, reserved location. This makes replenishment and picking predictable and simple, useful for fast-moving or fragile items. It, however, can lead to poor space utilization when SKUs fluctuate.
• Random (or floating) putaway: Items are stored in any appropriate available location. The system tracks locations, allowing better space utilization and flexibility, especially for operations with fluctuating SKUs and volumes.
• Zone-based putaway: The facility is divided into zones (by temperature, product type, or function), and items are assigned to a zone rather than a specific slot. This simplifies handling for specialized areas like cold storage or hazardous materials.
• Class-based (velocity) putaway: SKUs are classified by sales velocity (fast, medium, slow) and stored accordingly. Fast movers go close to packing areas; slow movers go to back or higher racks. This reduces picker travel and improves throughput.
• Size/weight-based putaway: Assign locations based on product dimensions and weight to ensure safety and efficient use of cubic space.
• Batch or pallet-based putaway: Entire pallets or batches are put away in bulk locations when replenishment frequency is low, and picking is pallet-based.
• Hybrid strategies: Combining strategies often yields the best results. For example, a hybrid approach might reserve dedicated slots for top SKUs, use class-based logic for the next tier, and random locations for long-tail items.

How to choose the right strategy

Choice depends on several factors:

• Order profile: High-order volumes with many SKUs picked frequently benefit from class-based and dedicated pick-face strategies. Low SKU turnover favors bulk or random strategies.
• Facility layout: Narrow aisles, multi-level racking, or specialized zones (cold, bonded) influence which strategies work best.
• Space constraints: If space is scarce, random or dynamic slotting improves utilization. If space is abundant, dedicated slots may reduce complexity.
• Labor model: If labor is scarce or costly, strategies that reduce travel (class-based, dedicated) provide cost savings. Automation investments also push toward strategies that optimize flow to machines.
• Product characteristics: Fragile, hazardous or temperature-sensitive goods need zone-based putaway or strict location rules for safety and compliance.
• Technology maturity: A WMS makes random, hybrid, and dynamic strategies feasible. Manual operations favor dedicated or simple class-based approaches.

Implementing putaway rules

A WMS makes implementation manageable by codifying rules. Typical rule logic might consider:

• SKU velocity and forecasted demand
• Item size, weight and stacking limits
• Compatibility constraints (e.g., do not store chemicals near food)
• Available cube and pallet positions
• Proximity to packing and shipping areas

When an inbound pallet is scanned, the WMS evaluates these rules and assigns the optimal location. For manual setups, a simple flowchart or set of written rules drives decisions.

Transitioning between strategies

Operations evolve, and so should putaway. Start with a simple method, then iterate. A common evolution path is:

1. Use dedicated locations for top SKUs and bulk storage for others.
2. Introduce class-based slotting to bring fast movers closer to pick areas.
3. Invest in a WMS to enable random and hybrid strategies and dynamic slotting based on real demand.

Examples

Example 1: A grocery distributor with many temperature-sensitive goods implements zone-based putaway for ambient, chilled and frozen goods. Within each zone, class-based slotting places high-turn dairy products near packing stations for rapid fulfillment.

Example 2: A third-party logistics (3PL) provider with many small clients uses random putaway with strong barcode scanning and a WMS to maximize space and handle SKU churn efficiently.

Measures of success

Track KPIs to evaluate strategy effectiveness: putaway time per pallet, travel distance reduction, space utilization, inventory accuracy, and impact on picking productivity. Small, consistent improvements in putaway performance compound into meaningful labor and cost savings.

Final advice



There is no one-size-fits-all putaway strategy. Evaluate your product mix, order patterns, facility layout and technology stack. Start simple, measure, and evolve. A thoughtful combination of strategies, supported by a WMS and clear operational rules, typically delivers the best balance of speed, cost and space utilization.