GlossaryEN1 min readUpdated: Jun 22, 2026

Putaway Optimization

At the moment goods arrive at the receiving dock, putaway optimization determines algorithmically which item belongs in which storage location.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://www.softwareadvice.com/resources/what-is-putaway-optimization/

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Definition & Explanation

At the moment goods arrive at the receiving dock, putaway optimization determines algorithmically which item belongs in which storage location. A warehouse management system (WMS) evaluates product velocity, unit dimensions, ABC classifications, and the physical warehouse layout to position fast-moving SKUs close to dispatch zones while routing slow movers to peripheral areas. Shorter travel distances for pickers and higher cube utilization are the immediate gains. In high-volume distribution centers handling thousands of SKUs, the difference between random placement and optimized putaway translates directly into measurable operating cost reductions. Unlike static slotting—which relies on historical analysis—putaway optimization works dynamically, responding to current inventory levels and live order patterns.

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Putaway Optimization

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Putaway Control

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