Overview

This article will explore how Putaway Rules can be used to strategize warehouse management in iVendNext. 

What are Putaway Rules?

Putaway Rules are predefined strategies that determine how incoming stock is assigned to warehouse locations. These rules take into account factors such as warehouse capacity and priority to ensure that stock is stored in the most optimal location. Putaway Rules are particularly useful in large warehouses with multiple storage locations, where manual assignment of stock can be time-consuming and error-prone.

Key Components of Putaway Rules

1. Item-Warehouse Combination: Each Putaway Rule is unique to a specific item and warehouse combination.

2. Capacity: The rule considers the available capacity of the warehouse to ensure that stock is not assigned to a location that is already full.

3. Priority: Warehouses can be assigned priority levels, with higher-priority locations being filled first.

Types of Putaway Strategies

iVendNext supports two main types of putaway strategies: Direct Putaway and Indirect (Combined) Putaway. Each strategy has its own use cases and benefits.

1. Direct Putaway

Direct Putaway is the process of assigning incoming stock directly to its final storage location in the warehouse. This strategy is ideal for businesses that receive stock and store it in a fixed location without the need for intermediate staging.

How Direct Putaway Works

1. When stock is received (e.g., through a Purchase Receipt), the Apply Putaway Rule checkbox is enabled.

2. iVendNext automatically assigns the stock to the appropriate warehouse based on the defined Putaway Rules.

3. The stock is placed directly in its final storage location, ready for future use.

Example Scenario

• Scenario: A business receives 10 cartons of a product and needs to store them in the warehouse.

• Process:

1. A Purchase Receipt is created for the 10 cartons.

2. The Apply Putaway Rule checkbox is enabled.

3. iVendNext assigns the cartons to the appropriate warehouse based on capacity and priority.

4. The cartons are placed directly in their final storage location.

2. Indirect (Combined) Putaway

Indirect Putaway, also known as Combined Putaway, involves receiving stock into a temporary or staging area before moving it to its final storage location. This strategy is useful for businesses that need to inspect, sort, or consolidate stock before storing it.

How Indirect Putaway Works

1. Stock is received into a temporary or staging warehouse (e.g., through a Purchase Receipt) without applying Putaway Rules.

2. Once the stock is ready for storage, a Stock Entry (Material Transfer) is created.

3. The Apply Putaway Rule checkbox is enabled in the Stock Entry, and iVendNext assigns the stock to the appropriate warehouse based on the defined rules.

Example Scenario

• Scenario: A business receives a shipment of mixed products that need to be sorted before storage.

• Process:

1. The stock is received into a temporary warehouse without applying Putaway Rules.

2. The stock is sorted and consolidated.

3. A Stock Entry is created to transfer the stock to its final storage location.

4. The Apply Putaway Rule checkbox is enabled, and iVendNext assigns the stock to the appropriate warehouse.

How to Implement Putaway Strategies in iVendNext

Implementing Putaway Rules in iVendNext involves creating and managing rules that align with your warehouse strategy. Here's how to get started:

Step 1: Create Putaway Rules

1. Go to Home > Stock > Putaway Rules in iVendNext.

2. Click on the Add Putaway Rule button to create a new rule.

3. Define the item, warehouse, capacity, and priority for the rule.

4. Save the rule.

Step 2: Apply Putaway Rules

1. During a Purchase Receipt or Stock Entry, enable the Apply Putaway Rule checkbox.

2. iVendNext will automatically assign the stock to the appropriate warehouse based on the defined rules.

Step 3: Monitor Warehouse Capacity

1. Use the Warehouse Capacity Summary Report to monitor warehouse capacities and stock levels.

2. Adjust Putaway Rules as needed to optimize warehouse space.

Best Practices for Strategizing Warehouse Management with Putaway Rules

To make the most of Putaway Rules in iVendNext, consider the following best practices:

1. Regularly Review and Update Rules: As your inventory and warehouse needs change, regularly review and update your Putaway Rules to ensure they remain effective.

2. Prioritize High-Turnover Items: Assign higher priority to warehouses that store high-turnover items to ensure quick access.

3. Use Staging Areas for Complex Receipts: For shipments that require sorting or inspection, use staging areas and Indirect Putaway to streamline the process.

4. Leverage Reports: Use iVendNext's reporting tools, such as the Warehouse Capacity Summary Report, to monitor and optimize warehouse space.

Real-World Example

Let’s consider a real-world scenario to understand how Putaway Rules can be used to strategize warehouse management:

🧥 Real-World Example: Retail Clothing

Scenario:
A fashion retailer receives a bulk shipment containing a mix of seasonal bestsellers and off-season clearance items.

📦 Process Breakdown

The process breakdown is as follows:

• Receiving:
  The shipment includes:

• High-turnover items: Summer T-shirts, denim shorts, and cotton dresses

• Low-turnover items: Winter coats, wool scarves, and thermal leggings
  These are received into a temporary staging area without applying Putaway Rules.

• Sorting:
  Staff sort the items based on expected sales velocity:

• Summer items are tagged as high-turnover

• Winter items are tagged as low-turnover

• Stock Entry – Direct Putaway:
  A Stock Entry is created to transfer the high-turnover summer items to the Main Store Warehouse, which is configured for fast-moving inventory.

• Putaway Type: Direct

• Apply Putaway Rule: ✅ Enabled

• iVendNext assigns the stock to front-of-store bins for quick access.

• Stock Entry – Indirect Putaway:
  A second Stock Entry is created for the low-turnover winter items, transferring them to the Overflow Warehouse, which is optimized for long-term storage.

• Putaway Type: Indirect

• Apply Putaway Rule: ✅ Enabled

• iVendNext assigns the stock to backroom or mezzanine bins based on configuration.