Putaway: What It Is and Why It Matters

Putaway is the step in warehouse operations where items received from suppliers, production lines, or returns are moved from the receiving or staging area into designated storage locations within the facility. For beginners, think of putaway as the act of putting groceries away on the right shelf when you get home — except it happens at scale, with pallets, racks, bins and software guiding the process.

Putaway may seem straightforward, but it is a foundational warehouse activity that influences efficiency across the supply chain. When done well, it reduces travel time for warehouse staff, minimizes product damage, improves inventory accuracy, and speeds up order fulfillment. When done poorly, goods can be stored in inefficient locations, increasing picker travel distances, raising labor costs, and causing stock discrepancies.

Key components of the putaway process

• Staging and verification: Items are unloaded and staged in a receiving area. Documentation (packing lists, purchase orders) and physical checks confirm quantities and product condition.
• Identification and labeling: Products are identified using barcodes, RFID tags, or labels so they can be tracked. Correct labeling is critical for automated systems and manual checks.
• Destination assignment: A storage location is selected based on rules (e.g., item size, velocity, storage requirements). This can be done manually by staff or automatically by a Warehouse Management System (WMS).
• Physical move: Goods are transported to their assigned location using forklifts, pallet jacks, conveyors, or automated guided vehicles (AGVs).
• Confirmation: The move is recorded in inventory systems to update stock levels and location data, completing the putaway loop.

Why putaway matters

• Operational efficiency: Smart putaway reduces the distance workers travel during picking, which is often the largest component of labor cost in a warehouse.
• Inventory accuracy: Accurate location records make it faster to find items and reduce errors during picking and replenishment.
• Space utilization: Optimal placement uses cubic and floor space more effectively, delaying or avoiding costly expansions.
• Product protection: Properly storing items according to size, weight and fragility minimizes damage and returns.
• Customer service: Faster, more accurate order fulfillment improves on-time delivery and customer satisfaction.

Common putaway environments and considerations

• Cold storage: Putaway must be fast and coordinated to limit exposure of temperature-sensitive goods, and locations are often segregated by temperature zones.
• High-volume distribution: Fast-moving SKUs are typically assigned to locations near picking areas to support high throughput.
• Bonded or regulated goods: Customs or regulatory rules may require specific storage controls and documentation during putaway.

Role of technology

A WMS is central to modern putaway. It can recommend locations based on rules such as SKU velocity, cube utilization, weight limits, and storage compatibility. Barcode scanners, RFID, voice-directed systems and real-time location systems (RTLS) reduce errors and speed confirmation. Automation like conveyors, pallet shuttles and AGVs further reduces manual touches and transit time.

Example

Imagine a mid-sized e-commerce warehouse receiving a mixed pallet of consumer electronics and accessories. After verification, the WMS identifies high-velocity smartphone units and places them in pick-face locations near packing stations. Bulky accessories are routed to bulk racks in a different aisle. The WMS issues location assignments via handheld scanners; staff move items accordingly and confirm the putaway, updating the inventory in real time. The result: pickers spend less time traveling, orders ship faster, and inventory data stays accurate.

Beginner tips

1. Start with simple location rules: segregate fast movers from slow movers and keep high-demand items near packing areas.
2. Use clear labeling and basic barcode scanning even before full automation — it dramatically cuts errors.
3. Train staff on safe handling and on the logic behind location choices so they understand why items go where they do.
4. Measure basic KPIs like putaway time, touches per movement, and location accuracy to identify improvement opportunities.

Putaway is more than just putting goods on a shelf. It is a strategic activity that affects labor cost, throughput, and customer satisfaction. For anyone starting in warehouse operations, mastering the principles of putaway is one of the fastest ways to improve overall performance and create a more organized, responsive supply chain.