{"id":1050,"date":"2018-11-20T14:45:17","date_gmt":"2018-11-20T22:45:17","guid":{"rendered":"https:\/\/www.logiwa.com\/?p=1050"},"modified":"2025-05-02T04:21:36","modified_gmt":"2025-05-02T11:21:36","slug":"directed-putaway-algorithm-warehouse","status":"publish","type":"post","link":"https:\/\/www.logiwa.com\/blog\/directed-putaway-algorithm-warehouse","title":{"rendered":"Putaway"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;section&#8221; _builder_version=&#8221;4.16&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_row admin_label=&#8221;row&#8221; _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width=&#8221;auto&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text ul_item_indent=&#8221;30px&#8221; admin_label=&#8221;Text&#8221; _builder_version=&#8221;4.22.2&#8243; header_2_font_size=&#8221;26px&#8221; header_3_font_size=&#8221;20px&#8221; header_4_font_size=&#8221;16px&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h2>The Beginner\u2019s Guide to Directed Putaway Algorithms<\/h2>\n<p>Directed putaway algorithms introduce efficiency to a notoriously inefficient, and often-overlooked, warehouse process. When goods arrive, workers transport them to shelves so when an order comes in the right goods can be easily located and shipped off. Where exactly a good winds up when it enters a warehouse impacts how efficient the warehouse <a href=\"\/blog\/pick-and-pack-process\" rel=\" noopener\">picking and shipping processes<\/a> will be.<\/p>\n<p><!--more--><\/p>\n<p>If configured correctly, your\u00a0system collects data on your inventory management, order picking, order packing, and shipping activities. Consequently, it knows how long it takes for workers to pick an item\u2014from the moment an order comes in to the moment an order leaves. It knows which products are most popular and, therefore, which products move most frequently. It\u2019s a treasure trove of information just waiting to be mined by your directed putaway algorithm.<\/p>\n<p>A well defined putaway algorithm helps workers to put right product into the right shelves so that <a href=\"\/blog\/warehousing\">warehousing<\/a> processes can be improved such as <a href=\"\/blog\/warehouse-cross-docking\" rel=\" noopener\">cross-docking<\/a>, <a href=\"\/blog\/warehouse-wave-picking\" rel=\" noopener\">wave picking<\/a>,<a href=\"\/blog\/zone-picking-pick-and-pass\" rel=\" noopener\"> zone picking<\/a>. Putaway is the first step of having an optimized picking process.<\/p>\n<p><!-- Table of Contents --><\/p>\n<div class=\"blog-toc\">\n<p>Contents:<\/p>\n<ol>\n<li><a href=\"#1\" rel=\"noopener\">The putaway process in warehouses and why directed putaway is a must<\/a><\/li>\n<li><a href=\"#2\" rel=\"noopener\">The kind of information you should be collecting with your warehouse management system (WMS)<\/a><\/li>\n<li><a href=\"#3\" rel=\"noopener\">How to leverage this data to automate key operational decisions<\/a><\/li>\n<li><a href=\"#4\" rel=\"noopener\">How to set up your directed putaway algorithm<\/a><\/li>\n<li><a href=\"#5\" rel=\"noopener\">What technology you can use to enhance your directed putaway algorithm\u2019s efforts<\/a><\/li>\n<\/ol>\n<\/div>\n<p><!-- In-Page Optin Box --><\/p>\n<p class=\"in-content-optin\">BONUS: Before you read further, download our Warehouse Management Software Whitepaper to see <a href=\"\/resources\/whitepapers\/warehouse-management-software-whitepaper\" target=\"_blank\" rel=\"noopener\">how Logiwa uses real-time data to help you get up to 100% inventory accuracy and execute advanced fulfillment strategies like wave planning.<\/a><\/p>\n<h2 id=\"1\">What Is The Putaway Process and Why Is Directed Putaway Such A Big Deal?<\/h2>\n<h3>What Is The Putaway Process?<\/h3>\n<p>As the name implies, the putaway process is the process of moving incoming goods from the dock to their permanent location within a warehouse. This permanent location could be anywhere, including the pick area, the <a href=\"\/blog\/stock-and-inventory-replenishment\" rel=\"noopener\">replenishment <\/a>area, or the storage area.<\/p>\n<p>Warehouse managers use a mixture of math and intuition to determine which spot to send goods. For instance, if the previous month\u2019s orders indicate that a specific good is quite popular, they may send more of that good to the pick area, while allocating other items to the storage area.<\/p>\n<p>The thing is, <a href=\"https:\/\/multichannelmerchant.com\/operations\/best-practices-in-material-handling-and-put-away\/\" target=\"_blank\" rel=\"noopener\">putaway often takes a backseat to other warehouse tasks<\/a>. When orders are coming in and the warehouse is super busy, managers prioritize tasks like picking and packing. As a result, incoming goods pile up in the staging area.<\/p>\n<p>Of course, it\u2019s understandable. Customers expect timely delivery of their orders and those orders must be picked. But a quick glance at the big picture shows that <a href=\"https:\/\/multichannelmerchant.com\/operations\/best-practices-in-material-handling-and-put-away\/\" target=\"_blank\" rel=\"noopener\">putting off putaway negatively impacts your warehouse<\/a> in many ways:<\/p>\n<ul>\n<li>Takes up space: In the warehouse world, space is money. Rent, heating, and insurance are all the price to pay for storing goods. A disorganized pile of goods is an inefficient use of space.<\/li>\n<li>Creates congestion: When another shipment of goods arrives, they must wait for the previous pile of unstored goods to be put away before they can be placed in the staging area. If the new goods are simply added to an existing pile, they add to the space issue and extend the time it takes to get caught up.<\/li>\n<li>Transaction errors: Goods tracked in an <a href=\"https:\/\/www.logiwa.com\/industries\/ecommerce-inventory-management-software\" rel=\" noopener\">inventory management system<\/a> may be entered incorrectly or not at all when they build up at the dock or staging area. This can impact your warehouse and inventory management efforts downstream by throwing off your stock numbers.<\/li>\n<li>Higher chance of damages: When goods are piled up, workers must move them around constantly to find the products they need. The more goods are handled, the higher the chances of damage or theft.<\/li>\n<\/ul>\n<p>It benefits your bottom line to put away your goods &#8211; and you\u2019ll pay dearly if you don\u2019t. While the costs may not be immediately noticeable, over the long term they\u2019ll add up to become an insidious form of <a href=\"\/blog\/eliminate-warehouse-waste\" rel=\" noopener\">warehouse waste<\/a>.[\/et_pb_text][et_pb_code _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<div class=\"wistia_responsive_padding\" style=\"padding:56.25% 0 0 0;position:relative;\">\n<div class=\"wistia_responsive_wrapper\" style=\"height:100%;left:0;position:absolute;top:0;width:100%;\"><iframe loading=\"lazy\" src=\"https:\/\/fast.wistia.net\/embed\/iframe\/nao4rvevcn?seo=false&#038;videoFoam=true\" title=\"Putaway Algorithms | Logiwa IO Video\" allow=\"autoplay; fullscreen\" allowtransparency=\"true\" frameborder=\"0\" scrolling=\"no\" class=\"wistia_embed\" name=\"wistia_embed\" msallowfullscreen width=\"100%\" height=\"100%\"><\/iframe><\/div>\n<\/div>\n<p><!-- [et_pb_line_break_holder] --><script src=\"https:\/\/fast.wistia.net\/assets\/external\/E-v1.js\" async><\/script>[\/et_pb_code][et_pb_text ul_item_indent=&#8221;30px&#8221; _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<p><span>Watch the video above to see Logiwa IO&#8217;s innovative putaway algorithm.<\/span><\/p>\n<h3>What Is Directed Putaway?<\/h3>\n<p>When you\u2019re in a rush or you\u2019ve had a long day, you likely fling your keys in the first decent spot, only to struggle to remember where you put them the next day.<\/p>\n<p>Now, imagine if the moment you opened the door, a household PA system instructed you to place your keys in a tray in the kitchen. The speaker system would refuse to shut off until it sensed that the keys had been placed in the tray. In the morning, the speaker system would calmly remind you where they were, saving you 10 minutes of frantically flipping over couch cushions.<\/p>\n<p>Conceptually, directed putaway is similar. When you\u2019ve got a million things going on in your warehouse, you plop incoming goods wherever there\u2019s open floor space. When an order comes in, you\u2019re now frantically looking for that <a href=\"\/blog\/manage-inventory-with-sku\" rel=\" noopener\">SKU<\/a>.<\/p>\n<p>Even though you know you received a shipment, it\u2019s not on the proper shelf, so you have to dig through a stack of goods, increasing the chances of damage and adding delays to the picking process.<\/p>\n<p>With a directed putaway algorithm, the warehouse management system tells you <i>exactly <\/i>where to store your goods the moment they enter the warehouse. No thinking necessary. This direction relies\u00a0 on a number of variables that the system computes based on instructions from your warehouse manager.<\/p>\n<p>In other words: A directed putaway algorithm saves warehouses time, money, and reduces all kinds of unfortunate scenarios involving damaged, lost, or stolen goods.<\/p>\n<p>Of course, benefiting from a directed putaway algorithm is not as simple as acknowledging its helpfulness. You have to do a little upfront work &#8211; or at least someone on your team does.<\/p>\n<h2 id=\"2\">What Kind of Information Does Your Directed Putaway Algorithm Need From Your Warehouse Management System?<\/h2>\n<p>Your algorithm is only as good as its data. It doesn\u2019t matter if you have the most perfectly proportioned chocolate cake recipe in the world. If you use dirt instead of cocoa, you\u2019re in for one lousy dessert.<\/p>\n<p>The cake is a beautifully optimized putaway process; the cake recipe is your algorithm. And the ingredients are the <a href=\"https:\/\/balloonone.com\/blog\/2018\/04\/04\/directed-putaway-boost-warehouse-productivity\/\" target=\"_blank\" rel=\"noopener\">data your warehouse management system collects<\/a> such as:<\/p>\n<ul>\n<li>Projected sales volume<\/li>\n<li>Size (height, length, weight)<\/li>\n<li>Price<\/li>\n<li>Receiving frequency<\/li>\n<li>Shipping frequency<\/li>\n<li>Special <a href=\"\/blog\/warehouse-material-handling\" rel=\"noopener\">material handling<\/a> requirements (hazardous materials, temperature-controlled goods)<\/li>\n<li>Cross-sold items (items that are typically sold together)<\/li>\n<li>Storage (space) availability<\/li>\n<\/ul>\n<p>All of these factors can help you more effectively put away your goods.<\/p>\n<h2>How To Leverage Directed Putaway Algorithms to Increase Operational Efficiency<\/h2>\n<p>It\u2019s up to you what information you collect, how you prioritize it, and how it optimizes your warehouse.<\/p>\n<p>For instance, if you<a href=\"\/blog\/demand-forecasting-retail\" rel=\" noopener\"> forecast a high sales volume<\/a> for certain SKUs, you can place them closer to the staging area or place a higher proportion of them in the pick area. Conversely, if the projected sales volume for a specific <a href=\"\/blog\/why-skus-essential-amazon\" rel=\"noopener\">SKU <\/a>is low, you can store them further back in the warehouse. This approach will <a href=\"\/blog\/calculate-inventory-turnover-ratio\" rel=\" noopener\">improve the inventory turnover<\/a> in your entire supply chain.<\/p>\n<p>The same goes for collecting data on the size of your goods.Assessing whether a package fits in a certain area takes up unnecessary time. Moreover, if a worker only realizes the space limitation after walking to the location, they\u2019ve wasted labor hours on this task.<\/p>\n<p>The same goes for storage availability. Instead of dispatching a worker to store goods in one location only to realize there\u2019s no more space, a warehouse management system would detect this and the directed putaway algorithm would assign a new location.<\/p>\n<p>Data on cross-selling is also an interesting way to further refine your putaway algorithm. Your warehouse management system, in conjunction with your <a href=\"\/blog\/what-is-order-management-system\" rel=\" noopener\">order management system<\/a>, will identify items that are often sold together. The directed putaway algorithm will instruct warehouse workers to store these items close to each other, shortening the overall pick time.<\/p>\n<p>Similarly, your smart putaway algorithm can place all popular items together. That way, fast-moving items are easily replenished because they are located closer to the dock. Down the road, this makes the pick process easier as well, since pickers can quickly grab popular items to fulfill orders.<\/p>\n<p><!-- In-Page Optin Box --><\/p>\n<p class=\"in-content-optin\">Better Warehouse Performance = Higher Profit Margins: Logiwa syncs accurate data across your entire interface so the inventory numbers you see on your dashboard are what your employees see on their devices. <a href=\"\/resources\/whitepapers\/warehouse-management-software-whitepaper\" target=\"_blank\" rel=\"noopener\"> Learn how Logiwa uses real-time data to help you get up to 100% inventory accuracy and 2.5x shipments.<\/a><\/p>\n<h2 id=\"4\">How To Set Up Your Directed Putaway Algorithm<\/h2>\n<p>The first step in creating a putaway algorithm is to set priorities. For instance, if it isn\u2019t possible to conduct one putaway action (e.g., putting away an item based on its sales frequency) which rule should determine its location next?<\/p>\n<p>Technically, a warehouse can customize its putaway algorithm to all sorts of optimization objectives. That said, there is a <a href=\"https:\/\/kurthatlevik.com\/2011\/04\/07\/put-away-concepts-%E2%80%93-part-i\/\" target=\"_blank\" rel=\"noopener\">standard approach and priority order that warehouses can adopt<\/a>.<\/p>\n<ol>\n<li>Directing putaway location based on an item\u2019s velocity first<\/li>\n<li>Directing putaway location based on an item\u2019s package type and storage requirements second<\/li>\n<li>Directing putaway location based on an item\u2019s usage last<\/li>\n<\/ol>\n<h3>Directing Putaway Location Based On Velocity<\/h3>\n<p>What do we mean by \u201cvelocity?\u201d<\/p>\n<p>Velocity is how often an item moves, and the reason for that item\u2019s movement could be anything, including:<\/p>\n<ul>\n<li>Fulfilling a sales order<\/li>\n<li>Transferring to another location<\/li>\n<li>Pre-assembling items (also known as kitting)<\/li>\n<li>Fulfilling production orders<\/li>\n<\/ul>\n<p>Each item receives a velocity code that is based on ABC analysis. <a href=\"\/blog\/abc-analysis-inventory-control\" rel=\" noopener\">ABC analysis<\/a> is an inventory management technique that helps warehouses decide how to allocate their stock-keeping resources. Since it would be difficult to count all stock at once, different SKUs are assigned into different categories (A, B, and C) based on how important they are.<\/p>\n<p>Importance can be defined in many different ways. Importance may refer to the most valuable or profitable SKUs or the most frequently picked SKUs. In the context of directed putaway, importance is based on velocity.<\/p>\n<p>High-velocity items are \u201cA\u201d items, items with a medium velocity are \u201cB\u201d items, and items with a low velocity are \u201cC\u201d items.<\/p>\n<p>The directed putaway algorithm would instruct workers to put \u201cA\u201d items in the most convenient locations. This means shelves that are near the dock or staging area and are at knee-to-chest height. The \u201cC\u201d category items would be put in sections with the complete opposite characteristics: near the back of the warehouse on shelves that are harder to reach.<\/p>\n<h3>Directing Putaway Location Based On Package Type and Storage Requirements<\/h3>\n<p>Warehouses store items in different parts of the facility based on varying packaging and storage requirements.<\/p>\n<p>Pallets may be stored in one area while individual cartons are stored in another. You can create an algorithm or rule to direct packages to specific areas of the warehouse depending on whether they are heavy or light, large or small, require refrigeration or don\u2019t, and are hazardous or not.<\/p>\n<h3>Directing Putaway Location Based On Usage<\/h3>\n<p>After your directed putaway algorithm considers the item\u2019s velocity and the item\u2019s package type and storage requirements, then it would consider the item\u2019s usage &#8211; the reason it\u2019s being moved. Putaway workers would be directed to stock specific items together.<\/p>\n<p>For example, items needed for a certain production process would be stored together and items that are often kitted together would be stored in the same section.<\/p>\n<h3>How These Factors Work Together In The Putaway Algorithm<\/h3>\n<p>To make sense of the directed putaway algorithm\u2019s different variables, the <a href=\"https:\/\/kurthatlevik.com\/2011\/04\/07\/put-away-concepts-%E2%80%93-part-i\/\" target=\"_blank\" rel=\"noopener\">warehouse management system creates putaway zones<\/a>. This allows it to quickly decide where to send items based on each item\u2019s unique mixture of variables.<\/p>\n<h2 id=\"5\">Using Technology To Enhance Your Directed Putaway Efforts<\/h2>\n<p>A directed putaway algorithm can significantly optimize your putaway process. Once you\u2019ve established an algorithm to quickly tell you where to place items, you can take things further by investing in technology that makes the entire process faster.<\/p>\n<p>Of course, this depends on how much money you can, and want to, invest in technology. If you have the cash and can justify additional spend on technology enhancements (i.e., see a positive <a href=\"\/blog\/warehouse-management-software-roi\" rel=\" noopener\">ROI for your warehouse<\/a>), consider the following technologies:<\/p>\n<ul>\n<li>Automated conveyors<\/li>\n<li>Put-to-light storage system<\/li>\n<li><a href=\"\/blog\/warehouse-robotics\" target=\"_blank\" rel=\"noopener\">Automated storage and retrieval system<\/a><\/li>\n<\/ul>\n<p>While these are expensive and time-intensive to implement, all of these pieces of <a href=\"\/blog\/warehouse-technology-trends\" rel=\" noopener\">warehouse technology<\/a> can help further optimize your directed putaway efforts.<\/p>\n<h2>Directed Putaway Algorithms Help Optimize an Often-Overlooked Warehouse Management Process<\/h2>\n<p>The putaway process lays the foundation for the rest of your warehouse operations. It plays a role in\u00a0 how much damage your goods will sustain, the likelihood of theft or loss, how easy it will be for warehouse staff to locate goods, and how long the picking process will take. In a nutshell, an investment in the health of your putaway process is an investment in the overall health of your warehouse.<\/p>\n<p>Directed putaway algorithms enable warehouses to store their items in the most efficient way possible. A WMS or a 3PL warehouse management system equipped with a directed putaway algorithm presents game-changing possibilities for your distribution business.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; width=&#8221;auto&#8221; custom_margin=&#8221;15px|auto|15px|auto|false|false&#8221; custom_css_main_element=&#8221;.hbspt-form .legal-consent-container a {||    color: white !important;||}&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221; global_module=&#8221;26788&#8243; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; use_background_color_gradient=&#8221;on&#8221; background_color_gradient_stops=&#8221;#481a96 0%|#200741 100%&#8221; custom_padding=&#8221;15px|35px|15px|35px|true|true&#8221; border_radii=&#8221;on|10px|10px|10px|10px&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; header_3_text_color=&#8221;#ffffff&#8221; header_3_font_size=&#8221;30px&#8221; header_3_font_size_tablet=&#8221;30px&#8221; header_3_font_size_phone=&#8221;20px&#8221; header_3_font_size_last_edited=&#8221;on|phone&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h3 style=\"text-align: center;\">Request a free demo to learn more about Logiwa WMS.<\/h3>\n<p>[\/et_pb_text][et_pb_code _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; text_orientation=&#8221;center&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<script charset=\"utf-8\" type=\"text\/javascript\" src=\"\/\/js.hsforms.net\/forms\/embed\/v2.js\"><\/script><!-- [et_pb_line_break_holder] --><script><!-- [et_pb_line_break_holder] -->  hbspt.forms.create({<!-- [et_pb_line_break_holder] -->    portalId: \"3469233\",<!-- [et_pb_line_break_holder] -->    formId: \"350e3ad2-eb09-46b1-9079-3f728ec2c0ea\",<!-- [et_pb_line_break_holder] -->    region: \"na1\"<!-- [et_pb_line_break_holder] -->  });<!-- [et_pb_line_break_holder] --><\/script>[\/et_pb_code][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=&#8221;row&#8221; _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width=&#8221;auto&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; locked=&#8221;off&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<p><strong>Related Terms<\/strong><\/p>\n<p><a href=\"https:\/\/www.logiwa.com\/blog\/eco-friendly-packaging\"><strong>Eco-Friendly Packaging<\/strong><\/a><br \/>Eco-friendly packaging has become increasingly prevalent to the world, as well as consumers. Learn about sustainable methods and the benefits of green packaging in this article by Logiwa.<\/p>\n<p><a href=\"https:\/\/www.logiwa.com\/blog\/3pl-meaning\"><strong>3PL Meaning<\/strong><\/a><br \/>Wondering about the meaning of 3PL? We\u2019ve got answers! We define 3PL (third-party logistics) &amp; clarify its various components.<\/p>\n<p><a href=\"https:\/\/www.logiwa.com\/blog\/warehouse-management-system-kpis\"><strong>Warehouse Management System KPIs<\/strong><\/a><br \/>Explore six of the most important key performance indicators to track with your warehouse management system software.<\/p>\n<p><a href=\"https:\/\/www.logiwa.com\/blog\/the-benefits-of-3pl-software-for-your-facility\"><strong>Benefits of 3PL Software<\/strong><\/a><br \/>Discover the amazing benefits of 3PL Software! Build your business &amp; save money, without additional headcount.<\/p>\n<p><a href=\"https:\/\/www.logiwa.com\/blog\/wms-features-for-smbs\"><strong>WMS Features for SMBs<\/strong><\/a><br \/>In this post we tell you which WMS features for SMBs are needed most. As a SMB there are benefits of warehouse management system.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_code _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<script type=\"application\/ld+json\">{<!-- [et_pb_line_break_holder] -->  \"@context\": \"https:\/\/schema.org\/\",<!-- [et_pb_line_break_holder] -->  \"@type\": \"HowTo\",<!-- [et_pb_line_break_holder] -->  \"name\": \"How To Set Up Your Directed Putaway Algorithm\",<!-- [et_pb_line_break_holder] -->  \"description\": \"A guide to setting up a directed putaway algorithm for efficient warehouse management.\",<!-- [et_pb_line_break_holder] -->  \"step\": [<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"HowToStep\",<!-- [et_pb_line_break_holder] -->      \"position\": \"1\",<!-- [et_pb_line_break_holder] -->      \"name\": \"Directing Putaway Location Based On Velocity\",<!-- [et_pb_line_break_holder] -->      \"itemListElement\": [<!-- [et_pb_line_break_holder] -->        {<!-- [et_pb_line_break_holder] -->          \"@type\": \"HowToDirection\",<!-- [et_pb_line_break_holder] -->          \"text\": \"Assign each item a velocity code based on ABC analysis. High-velocity items ('A' items) are put in the most convenient locations, while low-velocity items ('C' items) are put in harder to reach places.\"<!-- [et_pb_line_break_holder] -->        }<!-- [et_pb_line_break_holder] -->      ]<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"HowToStep\",<!-- [et_pb_line_break_holder] -->      \"position\": \"2\",<!-- [et_pb_line_break_holder] -->      \"name\": \"Directing Putaway Location Based On Package Type and Storage Requirements\",<!-- [et_pb_line_break_holder] -->      \"itemListElement\": [<!-- [et_pb_line_break_holder] -->        {<!-- [et_pb_line_break_holder] -->          \"@type\": \"HowToDirection\",<!-- [et_pb_line_break_holder] -->          \"text\": \"Create rules to direct packages to specific areas of the warehouse depending on their physical and storage requirements.\"<!-- [et_pb_line_break_holder] -->        }<!-- [et_pb_line_break_holder] -->      ]<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"HowToStep\",<!-- [et_pb_line_break_holder] -->      \"position\": \"3\",<!-- [et_pb_line_break_holder] -->      \"name\": \"Directing Putaway Location Based On Usage\",<!-- [et_pb_line_break_holder] -->      \"itemListElement\": [<!-- [et_pb_line_break_holder] -->        {<!-- [et_pb_line_break_holder] -->          \"@type\": \"HowToDirection\",<!-- [et_pb_line_break_holder] -->          \"text\": \"After considering the item\u2019s velocity and package type and storage requirements, consider the item\u2019s usage \u2013 the reason it\u2019s being moved. Putaway workers would be directed to stock specific items together.\"<!-- [et_pb_line_break_holder] -->        }<!-- [et_pb_line_break_holder] -->      ]<!-- [et_pb_line_break_holder] -->    },<!-- [et_pb_line_break_holder] -->    {<!-- [et_pb_line_break_holder] -->      \"@type\": \"HowToStep\",<!-- [et_pb_line_break_holder] -->      \"position\": \"4\",<!-- [et_pb_line_break_holder] -->      \"name\": \"Integration of Factors in The Putaway Algorithm\",<!-- [et_pb_line_break_holder] -->      \"itemListElement\": [<!-- [et_pb_line_break_holder] -->        {<!-- [et_pb_line_break_holder] -->          \"@type\": \"HowToDirection\",<!-- [et_pb_line_break_holder] -->          \"text\": \"To make sense of the directed putaway algorithm\u2019s different variables, the warehouse management system creates putaway zones. This allows it to quickly decide where to send items based on each item\u2019s unique mixture of variables.\"<!-- [et_pb_line_break_holder] -->        }<!-- [et_pb_line_break_holder] -->      ]<!-- [et_pb_line_break_holder] -->    }<!-- [et_pb_line_break_holder] -->  ]<!-- [et_pb_line_break_holder] -->}<\/script>[\/et_pb_code][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; disabled_on=&#8221;off|off|off&#8221; module_class=&#8221;recommended-content-callout&#8221; _builder_version=&#8221;4.22.2&#8243; _module_preset=&#8221;default&#8221; use_background_color_gradient=&#8221;on&#8221; background_color_gradient_stops=&#8221;#2d6ef9 0%|#6717cd 100%&#8221; background_color_gradient_start=&#8221;#63a2d9&#8243; background_color_gradient_end=&#8221;#3469b2&#8243; custom_margin=&#8221;0px||0px||false|false&#8221; custom_padding=&#8221;30px|30px|50px|30px|false|false&#8221; border_radii=&#8221;on|12px|12px|12px|12px&#8221; box_shadow_style=&#8221;preset1&#8243; box_shadow_vertical=&#8221;0px&#8221; box_shadow_blur=&#8221;10px&#8221; box_shadow_color=&#8221;rgba(74,75,109,0.09)&#8221; saved_tabs=&#8221;all&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; width=&#8221;100%&#8221; custom_margin=&#8221;||20px||false|false&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; header_2_text_align=&#8221;center&#8221; header_2_text_color=&#8221;#FFFFFF&#8221; header_2_line_height=&#8221;32px&#8221; custom_margin=&#8221;||0px||false|false&#8221; custom_padding=&#8221;||0px||false|false&#8221; custom_css_main_element=&#8221;text-align: center !important;&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h2 class=\"animated growIn slower go\" data-id=\"1\">The Leading Supply Chain Management Software for \u201cNew Age\u201d B2C\/B2B Fulfillment Businesses<\/h2>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;1_3,1_3,1_3&#8243; use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;2&#8243; make_equal=&#8221;on&#8221; module_class=&#8221;blog-callout-tiles&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; width=&#8221;100%&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;three-pl&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#FFFFFF&#8221; custom_padding=&#8221;30px|10px|60px|10px|false|false&#8221; box_shadow_style=&#8221;preset1&#8243; box_shadow_vertical=&#8221;13px&#8221; box_shadow_blur=&#8221;30px&#8221; box_shadow_color=&#8221;rgba(74,75,109,0.37)&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; header_3_text_align=&#8221;center&#8221; header_3_text_color=&#8221;#413885&#8243; text_orientation=&#8221;center&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h3 style=\"text-align: center;\">3PL<\/h3>\n<p>Cloud 3PL software for high-volume fulfillment excellence<\/p>\n<p>&nbsp;<\/p>\n<p class=\"more\"><a class=\"read-more\" href=\"https:\/\/www.logiwa.com\/industries\/cloud-3pl-software\">3PL WMS Solutions<\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;warehouse-management&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#FFFFFF&#8221; custom_padding=&#8221;30px|10px|60px|10px|false|false&#8221; box_shadow_style=&#8221;preset1&#8243; box_shadow_vertical=&#8221;13px&#8221; box_shadow_blur=&#8221;30px&#8221; box_shadow_color=&#8221;rgba(74,75,109,0.37)&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; header_3_text_align=&#8221;center&#8221; header_3_text_color=&#8221;#413885&#8243; text_orientation=&#8221;center&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h3 style=\"text-align: center;\">Warehouse Management<\/h3>\n<p>Modern digital WMS powers a modern fulfillment experience<\/p>\n<p>&nbsp;<\/p>\n<p class=\"more\"><a class=\"read-more\" href=\"https:\/\/www.logiwa.com\/solutions\/digital-warehouse-management-software\">WMS Solutions<\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;inventory-management&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#FFFFFF&#8221; custom_padding=&#8221;30px|10px|60px|10px|false|false&#8221; box_shadow_style=&#8221;preset1&#8243; box_shadow_vertical=&#8221;13px&#8221; box_shadow_blur=&#8221;30px&#8221; box_shadow_color=&#8221;rgba(74,75,109,0.37)&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.18.0&#8243; _module_preset=&#8221;default&#8221; header_3_text_align=&#8221;center&#8221; header_3_text_color=&#8221;#413885&#8243; text_orientation=&#8221;center&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<h3 style=\"text-align: center;\">Inventory Management<\/h3>\n<p>Improve your inventory across your supply chain.<\/p>\n<p>&nbsp;<\/p>\n<p class=\"more\"><a class=\"read-more\" href=\"https:\/\/www.logiwa.com\/industries\/ecommerce-inventory-management-software\">IMS Solutions<\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Beginner\u2019s Guide to Directed Putaway Algorithms Directed putaway algorithms introduce efficiency to a notoriously inefficient, and often-overlooked, warehouse process. When goods arrive, workers transport them to shelves so when an order comes in the right goods can be easily located and shipped off. Where exactly a good winds up when it enters a warehouse [&hellip;]<\/p>\n","protected":false},"author":29,"featured_media":9715,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"Directed putaway algorithms introduce efficiency to a notoriously inefficient, and often-overlooked, warehouse process. When goods arrive, workers transport them to shelves so when an order comes in the right goods can be easily located and shipped off. Where exactly a good winds up when it enters a warehouse impacts how efficient the warehouse <a href=\"\/blog\/pick-and-pack-process\" rel=\" noopener\">picking and shipping processes<\/a> will be.\r\n\r\n<!--more-->\r\n\r\nIf configured correctly, your\u00a0system collects data on your inventory management, order picking, order packing, and shipping activities. Consequently, it knows how long it takes for workers to pick an item\u2014from the moment an order comes in to the moment an order leaves. It knows which products are most popular and, therefore, which products move most frequently. It\u2019s a treasure trove of information just waiting to be mined by your directed putaway algorithm.\r\n\r\nA well defined putaway algorithm helps workers to put right product into the right shelves so that warehousing processes can be improved such as <a href=\"\/blog\/warehouse-cross-docking\" rel=\" noopener\">cross-docking<\/a>, <a href=\"\/blog\/warehouse-wave-picking\" rel=\" noopener\">wave picking<\/a>,<a href=\"\/blog\/zone-picking-pick-and-pass\" rel=\" noopener\"> zone picking<\/a>. Putaway is the first step of having an optimized picking process.\r\n\r\n<!-- Table of Contents -->\r\n<div class=\"blog-toc\">\r\n\r\nHow do you get started making the most of directed putaway algorithms? In this article, we\u2019ll break down:\r\n<ol>\r\n \t<li>The putaway process in warehouses and why directed putaway is a must<\/li>\r\n \t<li>The kind of information you should be collecting with your warehouse management system (WMS)<\/li>\r\n \t<li>How to leverage this data to automate key operational decisions<\/li>\r\n \t<li>How to set up your directed putaway algorithm<\/li>\r\n \t<li>What technology you can use to enhance your directed putaway algorithm\u2019s efforts<\/li>\r\n<\/ol>\r\n<\/div>\r\n<!-- In-Page Optin Box -->\r\n<p class=\"in-content-optin\"><strong>BONUS:<\/strong> Before you read further, download our Warehouse Management Software Whitepaper to see <a href=\"\/resources\/whitepapers\/warehouse-management-software\" target=\"_blank\" rel=\"noopener\">how Logiwa uses real-time data to help you get up to 100% inventory accuracy and execute advanced fulfillment strategies like wave planning.<\/a><\/p>\r\n\r\n<h2 id=\"1\">What Is The Putaway Process and Why Is Directed Putaway Such A Big Deal?<\/h2>\r\n<h4>What Is The Putaway Process?<\/h4>\r\nAs the name implies, the putaway process is the process of moving incoming goods from the dock to their permanent location within a warehouse. This permanent location could be anywhere, including the pick area, the <a href=\"\/blog\/stock-and-inventory-replenishment\" rel=\"noopener\">replenishment <\/a>area, or the storage area.\r\n\r\n<img style=\"width: 1600px;\" src=\"https:\/\/www.logiwa.com\/hubfs\/Website%20Assets\/Blog\/directed-putaway-algorithm-image-1.jpg\" alt=\"directed-putaway-algorithm-image-1\" width=\"1600\" \/>\r\n\r\nWarehouse managers use a mixture of math and intuition to determine which spot to send goods. For instance, if the previous month\u2019s orders indicate that a specific good is quite popular, they may send more of that good to the pick area, while allocating other items to the storage area.\r\n\r\nThe thing is, <a href=\"https:\/\/multichannelmerchant.com\/operations\/best-practices-in-material-handling-and-put-away\/\" target=\"_blank\" rel=\"noopener\">putaway often takes a backseat to other warehouse tasks<\/a>. When orders are coming in and the warehouse is super busy, managers prioritize tasks like picking and packing. As a result, incoming goods pile up in the staging area.\r\n\r\nOf course, it\u2019s understandable. Customers expect timely delivery of their orders and those orders must be picked. But a quick glance at the big picture shows that <a href=\"https:\/\/multichannelmerchant.com\/operations\/best-practices-in-material-handling-and-put-away\/\" target=\"_blank\" rel=\"noopener\">putting off putaway negatively impacts your warehouse<\/a> in many ways:\r\n<ul>\r\n \t<li><strong>Takes up space:<\/strong> In the warehouse world, space is money. Rent, heating, and insurance are all the price to pay for storing goods. A disorganized pile of goods is an inefficient use of space.<\/li>\r\n \t<li><strong>Creates congestion: <\/strong>When another shipment of goods arrives, they must wait for the previous pile of unstored goods to be put away before they can be placed in the staging area. If the new goods are simply added to an existing pile, they add to the space issue and extend the time it takes to get caught up.<\/li>\r\n \t<li><strong>Transaction errors: <\/strong>Goods tracked in an <a href=\"\/inventory-management-software\" rel=\" noopener\">inventory management system<\/a> may be entered incorrectly or not at all when they build up at the dock or staging area. This can impact your warehouse and inventory management efforts downstream by throwing off your stock numbers.<\/li>\r\n \t<li><strong>Higher chance of damages: <\/strong>When goods are piled up, workers must move them around constantly to find the products they need. The more goods are handled, the higher the chances of damage or theft.<\/li>\r\n<\/ul>\r\nIt benefits your bottom line to put away your goods - and you\u2019ll pay dearly if you don\u2019t. While the costs may not be immediately noticeable, over the long term they\u2019ll add up to become an insidious form of <a href=\"\/blog\/eliminate-warehouse-waste\" rel=\" noopener\">warehouse waste<\/a>.\r\n<h4>What Is Directed Putaway?<\/h4>\r\nWhen you\u2019re in a rush or you\u2019ve had a long day, you likely fling your keys in the first decent spot, only to struggle to remember where you put them the next day.\r\n\r\nNow, imagine if the moment you opened the door, a household PA system instructed you to place your keys in a tray in the kitchen. The speaker system would refuse to shut off until it sensed that the keys had been placed in the tray. In the morning, the speaker system would calmly remind you where they were, saving you 10 minutes of frantically flipping over couch cushions.\r\n\r\nConceptually, directed putaway is similar. When you\u2019ve got a million things going on in your warehouse, you plop incoming goods wherever there\u2019s open floor space. When an order comes in, you\u2019re now frantically looking for that <a href=\"\/blog\/manage-inventory-with-sku\" rel=\" noopener\">SKU<\/a>.\r\n\r\nEven though you know you received a shipment, it\u2019s not on the proper shelf, so you have to dig through a stack of goods, increasing the chances of damage and adding delays to the picking process.\r\n\r\nWith a directed putaway algorithm, the warehouse management system tells you <i>exactly <\/i>where to store your goods the moment they enter the warehouse. No thinking necessary. This direction relies\u00a0 on a number of variables that the system computes based on instructions from your warehouse manager.\r\n\r\nIn other words: A directed putaway algorithm saves warehouses time, money, and reduces all kinds of unfortunate scenarios involving damaged, lost, or stolen goods.\r\n\r\nOf course, benefiting from a directed putaway algorithm is not as simple as acknowledging its helpfulness. You have to do a little upfront work - or at least someone on your team does.\r\n<h3 id=\"2\">What Kind of Information Does Your Directed Putaway Algorithm Need From Your Warehouse Management System?<\/h3>\r\nYour algorithm is only as good as its data. It doesn\u2019t matter if you have the most perfectly proportioned chocolate cake recipe in the world. If you use dirt instead of cocoa, you\u2019re in for one lousy dessert.\r\n\r\nThe cake is a beautifully optimized putaway process; the cake recipe is your algorithm. And the ingredients are the <a href=\"https:\/\/balloonone.com\/directed-putaway-boost-warehouse-productivity\/\" target=\"_blank\" rel=\"noopener\">data your warehouse management system collects<\/a> such as:\r\n<ul>\r\n \t<li>Projected sales volume<\/li>\r\n \t<li>Size (height, length, weight)<\/li>\r\n \t<li>Price<\/li>\r\n \t<li>Receiving frequency<\/li>\r\n \t<li>Shipping frequency<\/li>\r\n \t<li>Special <a href=\"\/blog\/warehouse-material-handling\" rel=\"noopener\">material handling<\/a> requirements (hazardous materials, temperature-controlled goods)<\/li>\r\n \t<li>Cross-sold items (items that are typically sold together)<\/li>\r\n \t<li>Storage (space) availability<\/li>\r\n<\/ul>\r\nAll of these factors can help you more effectively put away your goods.\r\n<div id=\"integrations\" class=\"dark-blue-bg\">\r\n<div class=\"container\">\r\n<div class=\"row\">\r\n<div class=\"col-md-9 mx-auto\" align=\"center\">\r\n<div class=\"integrations-intro\">\r\n<div class=\"animatedParent\" data-sequence=\"500\"><\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"row\">\r\n<div class=\"col-lg-4 col-md-6\">\r\n<div class=\"animatedParent\">\r\n<div class=\"integration-box animated growIn go\"><\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"col-lg-4 col-md-6\">\r\n<div class=\"animatedParent\">\r\n<div class=\"integration-box animated growIn go\">\r\n\r\n<span style=\"color: #333333; font-size: 22px;\">How To Leverage Directed Putaway Algorithms to Increase Operational Efficiency\u00a0<\/span>\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\nIt\u2019s up to you what information you collect, how you prioritize it, and how it optimizes your warehouse.\r\n\r\nFor instance, if you<a href=\"\/blog\/demand-forecasting-retail\" rel=\" noopener\"> forecast a high sales volume<\/a> for certain SKUs, you can place them closer to the staging area or place a higher proportion of them in the pick area. Conversely, if the projected sales volume for a specific <a href=\"\/blog\/why-skus-essential-amazon-2\" rel=\"noopener\">SKU <\/a>is low, you can store them further back in the warehouse. This approach will <a href=\"\/blog\/calculate-inventory-turnover-ratio\" rel=\" noopener\">improve the inventory turnover<\/a> in your entire supply chain.\r\n\r\nThe same goes for collecting data on the size of your goods.Assessing whether a package fits in a certain area takes up unnecessary time. Moreover, if a worker only realizes the space limitation after walking to the location, they\u2019ve wasted labor hours on this task.\r\n\r\nThe same goes for storage availability. Instead of dispatching a worker to store goods in one location only to realize there\u2019s no more space, a warehouse management system would detect this and the directed putaway algorithm would assign a new location.\r\n\r\nData on cross-selling is also an interesting way to further refine your putaway algorithm. Your warehouse management system, in conjunction with your <a href=\"\/order-fulfillment-software\" rel=\" noopener\">order management system<\/a>, will identify items that are often sold together. The directed putaway algorithm will instruct warehouse workers to store these items close to each other, shortening the overall pick time.\r\n\r\nSimilarly, your smart putaway algorithm can place all popular items together. That way, fast-moving items are easily replenished because they are located closer to the dock. Down the road, this makes the pick process easier as well, since pickers can quickly grab popular items to fulfill orders.\r\n\r\n<!-- In-Page Optin Box -->\r\n<p class=\"in-content-optin\"><strong>Better Warehouse Performance = Higher Profit Margins:<\/strong> Logiwa syncs accurate data across your entire interface so the inventory numbers you see on your dashboard are what your employees see on their devices. <a href=\"\/resources\/whitepapers\/warehouse-management-software\" target=\"_blank\" rel=\"noopener\"> Learn how Logiwa uses real-time data to help you get up to 100% inventory accuracy and 2.5x shipments.<\/a><\/p>\r\n\r\n<h3 id=\"4\">How To Set Up Your Directed Putaway Algorithm<\/h3>\r\nThe first step in creating a putaway algorithm is to set priorities. For instance, if it isn\u2019t possible to conduct one putaway action (e.g., putting away an item based on its sales frequency) which rule should determine its location next?\r\n\r\nTechnically, a warehouse can customize its putaway algorithm to all sorts of optimization objectives. That said, there is a <a href=\"https:\/\/kurthatlevik.com\/2011\/04\/07\/put-away-concepts-%E2%80%93-part-i\/\" target=\"_blank\" rel=\"noopener\">standard approach and priority order that warehouses can adopt<\/a>.\r\n<ol>\r\n \t<li>Directing putaway location based on an item\u2019s velocity first<\/li>\r\n \t<li>Directing putaway location based on an item\u2019s package type and storage requirements second<\/li>\r\n \t<li>Directing putaway location based on an item\u2019s usage last<\/li>\r\n<\/ol>\r\n<h4>Directing Putaway Location Based On Velocity<\/h4>\r\nWhat do we mean by \u201cvelocity?\u201d\r\n\r\nVelocity is how often an item moves, and the reason for that item\u2019s movement could be anything, including:\r\n<ul>\r\n \t<li>Fulfilling a sales order<\/li>\r\n \t<li>Transferring to another location<\/li>\r\n \t<li>Pre-assembling items (also known as kitting)<\/li>\r\n \t<li>Fulfilling production orders<\/li>\r\n<\/ul>\r\nEach item receives a velocity code that is based on ABC analysis. <a href=\"\/blog\/abc-analysis-inventory-control\" rel=\" noopener\">ABC analysis<\/a> is an inventory management technique that helps warehouses decide how to allocate their stock-keeping resources. Since it would be difficult to count all stock at once, different SKUs are assigned into different categories (A, B, and C) based on how important they are.\r\n\r\nImportance can be defined in many different ways. Importance may refer to the most valuable or profitable SKUs or the most frequently picked SKUs. In the context of directed putaway, importance is based on velocity.\r\n\r\nHigh-velocity items are \u201cA\u201d items, items with a medium velocity are \u201cB\u201d items, and items with a low velocity are \u201cC\u201d items.\r\n\r\nThe directed putaway algorithm would instruct workers to put \u201cA\u201d items in the most convenient locations. This means shelves that are near the dock or staging area and are at knee-to-chest height. The \u201cC\u201d category items would be put in sections with the complete opposite characteristics: near the back of the warehouse on shelves that are harder to reach.\r\n<h4>Directing Putaway Location Based On Package Type and Storage Requirements<\/h4>\r\nWarehouses store items in different parts of the facility based on varying packaging and storage requirements.\r\n\r\nPallets may be stored in one area while individual cartons are stored in another. You can create an algorithm or rule to direct packages to specific areas of the warehouse depending on whether they are heavy or light, large or small, require refrigeration or don\u2019t, and are hazardous or not.\r\n<h4>Directing Putaway Location Based On Usage<\/h4>\r\nAfter your directed putaway algorithm considers the item\u2019s velocity and the item\u2019s package type and storage requirements, then it would consider the item\u2019s usage - the reason it\u2019s being moved. Putaway workers would be directed to stock specific items together.\r\n\r\nFor example, items needed for a certain production process would be stored together and items that are often kitted together would be stored in the same section.\r\n<h4>How These Factors Work Together In The Putaway Algorithm<\/h4>\r\nTo make sense of the directed putaway algorithm\u2019s different variables, the <a href=\"https:\/\/kurthatlevik.com\/2011\/04\/07\/put-away-concepts-%E2%80%93-part-i\/\" target=\"_blank\" rel=\"noopener\">warehouse management system creates putaway zones<\/a>. This allows it to quickly decide where to send items based on each item\u2019s unique mixture of variables.\r\n<h3 id=\"5\">Using Technology To Enhance Your Directed Putaway Efforts<\/h3>\r\nA directed putaway algorithm can significantly optimize your putaway process. Once you\u2019ve established an algorithm to quickly tell you where to place items, you can take things further by investing in technology that makes the entire process faster.\r\n\r\n<img style=\"width: 1600px;\" src=\"https:\/\/www.logiwa.com\/hubfs\/Website%20Assets\/Blog\/directed-putaway-algorithm-image-2.jpg\" alt=\"directed-putaway-algorithm-image-2\" width=\"1600\" \/>\r\n\r\nOf course, this depends on how much money you can, and want to, invest in technology. If you have the cash and can justify additional spend on technology enhancements (i.e., see a positive <a href=\"\/blog\/warehouse-management-software-roi\" rel=\" noopener\">ROI for your warehouse<\/a>), consider the following technologies:\r\n<ul>\r\n \t<li>Automated conveyors<\/li>\r\n \t<li>Put-to-light storage system<\/li>\r\n \t<li><a href=\"\/blog\/warehouse-robotics\" target=\"_blank\" rel=\"noopener\">Automated storage and retrieval system<\/a><\/li>\r\n<\/ul>\r\nWhile these are expensive and time-intensive to implement, all of these pieces of <a href=\"\/blog\/warehouse-technology-trends\" rel=\" noopener\">warehouse technology<\/a> can help further optimize your directed putaway efforts.\r\n<h3>Directed Putaway Algorithms Help Optimize an Often-Overlooked Warehouse Management Process<\/h3>\r\nThe putaway process lays the foundation for the rest of your warehouse operations. It plays a role in\u00a0 how much damage your goods will sustain, the likelihood of theft or loss, how easy it will be for warehouse staff to locate goods, and how long the picking process will take. In a nutshell, an investment in the health of your putaway process is an investment in the overall health of your warehouse.\r\n\r\nDirected putaway algorithms enable warehouses to store their items in the most efficient way possible. A WMS or a 3PL warehouse management system equipped with a directed putaway algorithm presents game-changing possibilities for your distribution business.","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[34,33,36],"tags":[],"class_list":["post-1050","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inventory-management","category-warehouse-management","category-wms"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.1 (Yoast SEO v25.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Putaway | Logiwa | WMS<\/title>\n<meta name=\"description\" content=\"Putaway is the process between the acquisition of goods from your vendor and placing them on their shelves. 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