Glossary
What is putaway?
Putaway is the process of moving received goods from the dock to their storage location and recording where they went.
Definition
Putaway is the step between receiving and storage: the goods are checked in, now somebody has to put them somewhere and write down where. It sounds too simple to need a name, but it's where location accuracy is either created or lost. A pallet received correctly and then dropped in a random open bay is now perfectly counted and completely unfindable.
The core discipline is one scan pair: scan the item, scan the bin it's going into. Directed putaway, where the system suggests the destination based on the item's home bin, available space, or velocity, is a refinement; the non-negotiable part is recording the location at the moment of placement, not from memory at the end of the shift.
Putaway choices also encode strategy. Fast movers belong near the pick face, heavy items on low shelves, FIFO and FEFO stock placed behind existing units so older stock gets picked first. A putaway rule as simple as "new lots go to the back of the bin" is what makes first-expired-first-out actually happen on the shelf.
Where teams trip: the staging black hole. Goods get received in the system but sit in staging for days, so counts say the item is in stock while pickers can't find it. Measure dock-to-bin time, and treat anything over a day as a backlog to clear, not a norm.
Example
A receiver checks in 6 cases of fittings against the PO, and the app directs them to bin D-07, the SKU's home location. One scan of the case label and one scan of the bin barcode later, the stock is findable by any picker in the building.
By Cameron Priest · Co-founder, Order3
Cameron co-founded TradeGecko, the inventory platform acquired by Intuit. He has spent more than a decade building software for the people who run physical stock.
Updated 2026-06-16
Where this lives in Order3