What a warehouse management system can do for you

By Oleg Mikhailenko
Published in Solutions
July 21, 2022
3 min read
What a warehouse management system can do for you

A warehouse for ecommerce companies can be a hectic place. Things like fulfillment models, SKUs, and physical distribution are enough to give your average merchant, just starting out, a terrible headache. It can be difficult to even parse what’s going wrong, and how it can be solved without extreme expenditures of time and money alike. Fear not, though. Hope is far from lost.

One of the best things any warehouse owner can do is implement a dedicated ecommerce inventory management system. A robust warehouse management system for ecommerce companies can make all the difference between a shoddy, sloppily-run facility, and a facility that believes efficiency is king. But which ecommerce system is best, and how can a good software for ecommerce stock management contribute to better outcomes for customers and sellers alike? Read on to find out.

What is putaway?

Putaway in warehouse contexts refers to the process of moving goods and pallets from the intake dock to their permanent position in the warehouse. This can be a very methodical process or a rather haphazard one, depending on the management of the ecommerce warehouse in question. From the conclusion of putaway warehouse processes such as picking, packing, and shipping can take place, completing the delivery chain and allowing orders to be sent to the customers waiting at home.

Directed putaway, on the other hand, is a bit different. There’s an implication of order there, of making sure that everything has its place. Imagine instead of flinging your keys off randomly when you get home, you’re told to put them in a specific dish each and every time. This avoids complications and delays the next time you’re trying to get out the door.

How can a directed putaway algorithm help?

Directed putaway algorithms are a way to introduce a measure of efficiency into an otherwise inefficient process. Picture this: you’re working at your local warehouse, and whenever goods are dropped off for intake, you simply put them in any old place without any rhyme or reason. Most of the time you manage to mark down where you put it, but sometimes you forget. When the pickers and packers come along, they have to mount a veritable expedition to find where you happened to put those products.

Now rewind. You’re working at your local warehouse, but this time it has a putaway algorithm that lets you know exactly where you should set the incoming goods. This has been calculated not only to ensure efficient distribution, but to make sure the pickers can find and pick the products in a timely manner. These algorithms need data such as size, weight, price, and receiving frequency to make sure that they can be placed in the optimum position for later retrieval.

How does this integrate with dynamic fulfillment?

A dynamic warehouse network is a peer-to-peer network marketplace for warehousing and fulfillment services. Dynamic warehousing, also known as random location, means that items don’t have a predetermined warehouse location. Instead, they’re placed wherever there happens to be spare room on the rack. This allows warehousing networks to be scaled and expanded alongside demand. Unlike Amazon, who has to build new warehouses and facilities in order to scale further, people making use of the dynamic model can simply rent out additional warehouse space from other providers. Dynamic warehousing nets are especially insulated from variability for this exact reason. Putaway algorithms can work unhindered in a dynamic storage environment as they have little to do with disrupting the intake process itself. All manner of warehouses have the capability to utilize directed putaway algorithms in their everyday operations.

In conclusion

P2Pseller is committed to bringing about the e-commerce and fulfillment revolution through our democratized, free market approach to linking business owners and creators with ecommerce fulfillment systems across the globe. Sign up for a free account today in order to see and take full advantage of everything P2Pseller can do for you and your business. We’re committed to helping you grow your outreach, exposure, and profits, all from the convenience of your computer or smartphone.


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Business Basics: Directed putaway algorithms

Oleg Mikhailenko

Co-Founder, CEO P2Pseller

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