Putaway Time

Related KPIs

Putaway Time Interpretation

High putaway times indicate inefficiencies in warehouse operations, potentially leading to increased costs and delayed order fulfillment. Conversely, low putaway times reflect streamlined processes and effective resource allocation. Ideal targets typically fall below 24 hours for most industries.

• <12 hours – Exceptional performance; indicates highly efficient operations
• 12–24 hours – Acceptable range; monitor for potential improvements
• >24 hours – Inefficiencies likely; requires immediate investigation

Common Pitfalls

Many organizations overlook the importance of accurate data entry, which can lead to inflated putaway times.

• Failing to invest in training for warehouse staff can result in inconsistent practices. Employees may not follow best practices, leading to delays and errors in inventory management.
• Neglecting to utilize technology, such as warehouse management systems, can hinder efficiency. Without automation, manual processes become time-consuming and error-prone, increasing putaway times.
• Ignoring layout optimization in storage facilities can cause unnecessary delays. Poorly designed spaces lead to longer travel times for staff, impacting overall putaway efficiency.
• Underestimating the impact of peak seasons can strain resources. Companies may not allocate sufficient staff or equipment, resulting in bottlenecks during high-demand periods.

Improvement Levers

Enhancing putaway time requires a multifaceted approach focused on process optimization and technology integration.

• Implement real-time tracking systems to monitor inventory movement. This allows for quicker identification of bottlenecks and enables proactive management of resources.
• Redesign warehouse layouts to minimize travel distances for staff. A well-organized space can significantly reduce the time taken to put away inventory.
• Utilize data analytics to forecast inventory needs accurately. This helps in planning and ensures that resources are allocated efficiently during peak times.
• Regularly review and update standard operating procedures for putaway processes. Continuous improvement fosters a culture of efficiency and accountability among staff.

Putaway Time Case Study Example

A leading e-commerce retailer faced challenges with its putaway time, which averaged 36 hours, significantly impacting order fulfillment. The company initiated a project called "Fast Track," aimed at reducing putaway time through process re-engineering and technology upgrades. By introducing automated guided vehicles (AGVs) and optimizing storage layouts, the retailer aimed to streamline operations and enhance efficiency.

Within 6 months, the putaway time dropped to 18 hours, resulting in a 25% increase in order processing speed. The implementation of a new warehouse management system allowed real-time tracking of inventory, enabling staff to respond quickly to changes in demand. Employee training programs were also revamped to ensure staff were well-versed in new technologies and processes.

The success of "Fast Track" led to improved customer satisfaction scores and a noticeable reduction in operational costs. The retailer reinvested the savings into expanding its product range, further enhancing its market position. By focusing on putaway time, the company not only improved its operational efficiency but also strengthened its overall supply chain resilience.