System-directed putaway is when the WMS determines where to store incoming goods based on intelligent rules like item velocity, size, weight, stock levels, or zone preferences. Instead of warehouse staff manually choosing bin locations, the system guides them to the most efficient storage spot for optimal warehouse performance.

For example, fast-moving items are automatically routed to forward pick locations near packing stations, while bulk stock goes to reserve storage. The system considers factors like product compatibility, weight distribution, and pick path optimisation to make split-second storage decisions that would take humans considerable time to calculate.

How System-Directed Putaway Works in Practice

Imagine a goods-in operative receiving a mixed pallet containing bestselling items, slow movers, and seasonal products. Without system direction, they might store everything in the nearest empty location - creating future inefficiencies.

With system-directed putaway, the process transforms:

Step 1: Scan Receipt The operative scans incoming items. The system instantly recognises each SKU and analyses:

• Historical pick frequency

• Current stock locations

• Available storage spaces

• Upcoming order demand

Step 2: Intelligent Direction The system directs different items to optimal locations:

• Bestsellers → Forward pick faces near packing

• Slow movers → Upper level reserve storage

• Heavy items → Lower rack positions

• Seasonal items → Designated seasonal zones

Step 3: Confirmation Staff confirm putaway completion via mobile device, updating inventory in real-time. The system now knows exact locations for efficient future picking.

This intelligence extends beyond simple rules. Modern systems use predictive analytics to anticipate demand patterns, ensuring products are positioned optimally before peak periods.

Common Challenges and Practical Solutions

The "Wherever Fits" Problem

The Challenge: Traditional putaway often follows the "wherever there's space" approach. This leads to popular items stored in far corners, heavy items on high shelves, and similar SKUs scattered across the warehouse.

The Solution: System-directed putaway uses multi-factor algorithms to determine optimal placement. Every putaway decision considers immediate space efficiency and long-term operational impact. The system learns from pick patterns to continuously refine placement strategies.

Resistance to Change

Experienced warehouse staff often resist system direction, believing their judgment is superior. "I've been doing this for 20 years" is a common refrain.

Address this through:

• Demonstrating measurable improvements in pick times

• Involving staff in rule configuration

• Showing how system direction reduces physical strain

• Celebrating efficiency wins as a team achievement

Balancing Multiple Objectives

Manual Challenge: Humans struggle to balance competing factors in real-time System Advantage: Algorithms instantly weigh multiple criteria:

• Pick frequency vs storage density

• Travel distance vs batch picking efficiency

• Weight distribution vs accessibility

• Product compatibility vs space utilisation

Business Impact of System-Directed Putaway

The transformation from manual to system-directed putaway delivers substantial returns:

Picking Efficiency By positioning products optimally, pick travel distances reduce by 30-50%. This improvement directly impacts pick rates and order throughput. Fast-moving items in prime locations mean pickers spend more time picking and less time walking.

Space Utilisation System direction typically improves storage density by 15-25% through intelligent slotting. The system ensures cubic space is used efficiently while maintaining accessibility. This optimisation is crucial for operations considering warehouse automation.

Accuracy Improvements Defined putaway locations reduce the "lost stock" phenomenon where inventory exists but can't be found. This improvement in inventory accuracy reduces write-offs and improves fill rates.

Seasonal Adaptability System rules automatically adjust for seasonal patterns. Summer products migrate to prime locations as weather warms, while winter items move to reserve storage - all without manual intervention.

Key Metrics to Monitor

Track these KPIs to measure system-directed putaway effectiveness:

• Putaway Time per Pallet/Unit - Speed of goods-to-location process

• Storage Density - Percentage of available space utilised

• Pick Path Efficiency - Average distance per pick post-implementation

• Location Accuracy - Items found where system indicates

• Putaway Rule Compliance - Percentage following system direction

• Replenishment Frequency - How often forward picks need restocking

Regular analysis helps refine putaway rules for optimal performance. Learn about comprehensive warehouse efficiency strategies.

Frequently Asked Questions

How does the system know where to put things?

System-directed putaway uses configurable rules based on your operation's unique needs. Common factors include:

• ABC velocity analysis (fast/medium/slow movers)

• Physical characteristics (size, weight, fragility)

• Product families and pick compatibility

• Expiry dates for FEFO management

• Seasonal demand patterns

Can we override system suggestions?

Yes, overrides are possible for exceptional circumstances. However, frequent overrides suggest rules need adjustment. Track override reasons to identify rule refinement opportunities.

How long does implementation take?

Basic system-directed putaway can go live within days of WMS implementation. Rule optimisation is ongoing - most operations see significant improvements within 4-6 weeks as the system learns your patterns.

Does this work for all warehouse types?

System-directed putaway benefits most operations but excels in:

• Multi-SKU environments

• Operations with varying product velocities

• Warehouses with space constraints

• Facilities handling seasonal variations

Integration Considerations

Successful system-directed putaway requires:

Physical Infrastructure:

• Clear location labelling (bin location codes)

• Adequate lighting for scanning

• Mobile devices for goods-in staff

• Structured storage locations (not floor stacking)

Data Requirements:

• SKU master data (dimensions, weight, velocity)

• Historical pick frequency analysis

• Storage location characteristics

• Product compatibility matrices

Process Prerequisites:

• Defined goods-in procedures

• Staff training on mobile devices

• Clear escalation paths for exceptions

• Regular location audits

System Integration:

• Warehouse management software

• Receiving/check-in scanning capability

• Real-time inventory updates

• Replenishment rule engine

Alternative Approaches to Putaway

Fixed Location Storage

Every SKU has a permanent home. Simple but inflexible - doesn't adapt to velocity changes or seasonal variations. Wastes valuable space on slow-moving items.

Random Storage (Chaotic Storage)

Items stored wherever space exists, relying on system tracking. Maximises space utilisation but can create inefficient pick paths without intelligent rules.

Manual Decision Making

Experienced staff decide placement based on intuition. Inconsistent results dependent on individual judgment and knowledge. Doesn't scale with staff turnover or growth.

System-Directed Putaway

Intelligent, rule-based placement optimising multiple factors simultaneously. Consistent, efficient, and continuously improving. Essential for modern 3PL fulfilment and growing eCommerce operations.

Next Steps: Optimise Your Storage Strategy

Transform your putaway process by understanding:

• Current storage density and utilisation rates

• Average pick travel distances

• Time spent searching for items

• Seasonal storage challenges

Schedule a Consultation to explore how system-directed putaway could revolutionise your warehouse efficiency and accuracy.

Related Topics: Dynamic Slotting | Putaway Strategy | Replenishment