Understanding Putaway Methods and Benefits for Effective Warehouse Management

When the important putaway process in warehouse management is executed correctly, putaway seamlessly organizes your inventory, making products easily accessible and minimizing retrieval time. However, the stakes are high, as a poorly executed putaway can plunge your operations into confusion, wasting valuable time and posing safety hazards for your team.

A recent survey revealed that nearly half of warehouse managers acknowledge the inefficiencies in their putaway processes, emphasizing its significant impact on overall warehouse efficiency. Thus, to safeguard against back-orders and stockouts, and also to ensure employee safety, a streamlined putaway process is non-negotiable. It is extremely crucial for your business success, especially in the dynamic business landscape of Singapore.

In this article, we will explore the methods and benefits of putaway, exploring different methods and unveiling how the WMS (warehouse management software) tool can optimize your warehouse putaway process. Read this article and take charge of your warehouse efficiency, enhance the pick/pack/ship process, and fortify the foundation of your business operations!

What is Putaway?

In the realm of warehouse management, putaway stands as a pivotal process, crucial for maintaining an efficient, organized, and effective operational flow. But what exactly is putaway?

At its core, putaway is the supply chain practice that guides the movement of products from the point of receipt to their designated storage locations within the warehouse, marking the beginning of the inventory management cycle. This process involves transporting goods from the receiving dock and strategically placing them in their designated storage space within the warehouse.

The chosen putaway areas are determined by product characteristics and demand patterns, guided by specific putaway rules. What are the putaway rules? These rules optimize the placement of incoming products based on criteria such as product category, weight, volume, or storage requirements.

The significance of a well-executed putaway process cannot be overstated. It ensures not only the optimal utilization of storage space but also plays a vital role in preserving the integrity and quality of the stored goods. Overall, effective putaway strategies lead to streamlined warehouse operations, enabling quicker retrieval times, reducing the risk of damage, and enhancing overall inventory management.

Advantages of Implementing Putaway in Your Warehouse

Implementing an effective putaway process in your warehouse brings a multitude of benefits that can transform your inventory management from a major challenge during putaway to a strategic advantage. Some of the benefits include:

1. Enhanced space utilization: Proper putaway techniques ensure that every inch of your warehouse space is used efficiently. By organizing inventory systematically, you can maximize storage capacity and avoid clutter.
2. Improved inventory accuracy: When goods are correctly put away, tracking and managing inventory becomes more accurate. This reduces the chances of overstocking or stockouts, ensuring that inventory levels are just right.
3. Increased operational efficiency: A well-organized putaway process streamlines workflows in the warehouse. This leads to quicker retrieval times, faster order fulfillment, and overall operational efficiency.
4. Reduced risk of damage and loss: Proper storage of goods minimizes the risk of damage during storage and handling, thereby reducing the associated costs.
5. Enhanced worker safety: Effective putaway strategies also contribute to a safer working environment. Organized storage prevents accidents and injuries, creating a safer workspace for employees.

It is also important to note that you can get a higher ROI by choosing the best software. One of them is HashMicro, partnered with Singapore government’s EDG up to 50% and NTUC CTC Grant up to 70%. For more details about its pricing, click the image below!

Types of Putaway Methods

Putaway methods can vary based on the nature of the warehouse operations, the types of goods stored, and the specific operational strategies of a business. Here’s a look at some common putaway methods:

1. Based on purchase order: This method involves storing items based on their purchase order information. It is particularly useful for warehouses that handle goods arriving in large, infrequent shipments. This method simplifies cross-referencing with purchase orders and makes it easier to conduct audits.
2. Based on SKU: Storing items based on Stock Keeping Unit (SKU) is another effective method. It facilitates easier tracking and management of items, especially in warehouses with a vast and varied inventory.
3. Based on product type: Organizing items by product type is a method that enhances the efficiency of both storing and retrieving items. It is highly effective in warehouses where items are categorized into distinct types or categories.
4. Direct putaway: What is a directed putaway? It is a streamlined approach where goods are moved directly from the receiving area to their final storage location. This method is time-efficient and reduces handling, but it requires accurate, real-time data to be effective.

How to Optimize Putaway Process in Your Warehouse

Optimizing the putaway process is crucial for warehouses aiming to enhance efficiency and productivity. Here are some strategies to fine-tune this essential operation:

1. Leverage technology: Implementing a Warehouse Management System (WMS) can significantly improve putaway processes. Technologies like RFID tracking, barcoding, and automated data capture streamline the process, reducing errors and saving time.
2. Standardize procedures: Establishing standard operating procedures for putaway activities ensures consistency and efficiency. Clear guidelines help staff to understand the best practices for storing different types of goods, leading to a more organized warehouse.
3. Train your staff: Well-trained personnel are key to an efficient putaway process. Regular training sessions keep the staff updated on the latest techniques and technologies, enabling them to handle the putaway process effectively.
4. Implement cross-docking when applicable: Cross-docking allows for direct transfer of goods from the receiving to the shipping dock, bypassing storage. This method is ideal for time-sensitive products, reducing handling and storage time.
5. Continuously analyze and improve: Regularly reviewing the putaway process helps identify bottlenecks and areas for improvement. Use key performance indicators (KPIs) to measure efficiency and make data-driven decisions for ongoing optimization.

How HashMicro Warehouse Management Software Can Help Ease Putaway Methods

HashMicro Warehouse Management Software (WMS) stands as a robust solution, transforming the complexity of putaway into a streamlined and efficient operation. Let’s explore how HashMicro WMS can enhance your warehouse’s putaway process:

1. Automated data capture: With features like barcode scanning and RFID technology, HashMicro WMS automates data entry, significantly reducing the time and errors associated with manual processes.
2. Real-time inventory visibility: HashMicro WMS offers real-time inventory tracking, providing up-to-date information on stock levels and locations. This visibility is crucial for efficient putaway, ensuring that goods are stored in the optimal locations.
3. Optimized storage allocation: The system intelligently suggests the best storage locations based on various factors such as product type, size, and frequency of access. This optimized allocation ensures the best use of warehouse space and efficient retrieval.
4. Integration with purchasing and supply chain: HashMicro WMS integrates seamlessly with other systems, allowing for a coordinated approach to inventory management. This integration ensures that putaway processes are aligned with purchasing and supply chain operations, enhancing overall efficiency.

Embracing Warehouse Management Efficiency with HashMicro WMS

In conclusion, the integration of an effective putaway process in your warehouse operations together with the advanced capabilities of HashMicro WMS, is a game-changer for businesses striving for peak performance in Singapore. This not only streamlines warehouse operations but also ensures that you stay ahead in the competitive landscape by maximizing efficiency, reducing errors, and optimizing space utilization.

Implementing a strategic putaway system, whether based on purchase orders, SKU, product type, or direct putaway methods, is pivotal in achieving an organized and efficient warehouse. When combined with HashMicro WMS, these processes become more manageable, allowing for real-time tracking, reduced manual errors, and enhanced overall productivity. For more information on this system, click the image below, or you can try out a free demo by applying here.

By choosing HashMicro WMS, you are not just adopting a software solution; you are going to be in a partnership that understands the complexities of warehouse management and offers tailored solutions to meet your unique business needs. The decision to integrate HashMicro WMS into your warehouse operations is a step towards a more streamlined, efficient, and profitable business model.

Frequently Asked Questions About Putaway

• What is putaway in warehouse management? 

  Putaway is a critical warehouse process that involves moving goods from the receiving area to the most appropriate storage space. It is crucial for maintaining order and maximizing space utilization in a warehouse.

• How does putaway improve warehouse operations? 

  Putaway enhances warehouse operations by organizing inventory, reducing retrieval time, and minimizing the risk of damage or loss. It also contributes to better space utilization and overall warehouse efficiency.

• Can HashMicro WMS be customized for different putaway methods? 

  Yes, HashMicro WMS is highly customizable and supports various putaway methods, including purchase order-based, SKU-based, and direct putaway, ensuring it aligns with your specific warehouse needs.

• What are the benefits of integrating HashMicro WMS? 

  Integrating HashMicro WMS streamlines warehouse operations, improves inventory accuracy, reduces manual errors, and provides real-time data for better decision-making.

• Is HashMicro WMS suitable for small to medium-sized warehouses? 

  Absolutely, HashMicro WMS is designed to cater to warehouses of all sizes. Its scalability and customizable features make it an ideal choice for small to medium-sized businesses looking to optimize their warehouse operations.