Every warehouse manager knows that where you place your goods matters just as much as how you move them. Poor organization leads to wasted time, increased travel distance, and confusion during picking. That’s why SAP Extended Warehouse Management (EWM) offers intelligent Putaway Strategies — to make sure every item finds its perfect place in the warehouse.
Whether you’re new to SAP or working in logistics, understanding Putaway Strategies in SAP EWM is essential to managing inventory effectively and improving warehouse performance. Let’s simplify this topic step by step and see how it works in real-world scenarios.
🏗️ What Is Putaway in SAP EWM?
In simple terms, Putaway refers to the process of storing goods in the right location after they’ve been received in the warehouse.
After goods arrive through Inbound Delivery, warehouse staff or automated systems need to decide where to store them — and that’s where Putaway Strategies come into play.
A Putaway Strategy determines the logic EWM uses to select storage bins automatically. Instead of relying on manual decisions, the system uses rules to find the best location for each product.
🧠 Why Are Putaway Strategies Important?
Efficient putaway directly impacts:
- Warehouse space utilization
- Picking speed
- Stock visibility
- Reduced manual effort
- Faster inbound processing
For example, placing frequently picked items closer to dispatch areas saves time. Similarly, heavy goods should go in lower bins for easy handling. With SAP EWM, all of this can be automated using strategy-based putaway.
⚙️ How Putaway Strategies Work in SAP EWM
When a Putaway Warehouse Task is created, SAP EWM uses the Putaway Control Indicator and Storage Type Search Sequence to determine where to store the product.
Here’s how it works:
- The system identifies the product or handling unit (HU).
- It checks which storage type and strategy apply.
- It searches available bins that meet the rules (e.g., empty, same product group).
- It assigns a destination bin automatically.
This ensures consistency, reduces human error, and keeps your warehouse well-organized.
🏢 Types of Putaway Strategies in SAP EWM
SAP EWM provides multiple Putaway Strategies to suit different warehouse requirements. Let’s explore the most common ones:
1. Fixed Bin Strategy
This is the simplest strategy each product is assigned to a fixed bin in the warehouse.
Use Case:
Ideal for warehouses that handle a consistent range of materials, like small retail stores or spare parts warehouses.
Example:
Product “A” is always stored in Bin 01-01-01.
When new stock arrives, EWM directs it straight to that bin.
Benefits:
- Easy to understand and manage
- Reduces confusion for warehouse staff
2. Empty Bin Strategy
Here, the system automatically searches for the first available empty bin in a defined storage type or area.
Use Case:
Used when goods can be stored anywhere as long as the bin is empty common in general-purpose storage.
Example:
A new batch of bulk items arrives, and the system looks for any available empty bin in the storage type “ST-01.”
Benefits:
- Maximizes space utilization
- Fully automated
3. Addition to Existing Stock (Consolidation Strategy)
This strategy adds goods to bins that already contain the same material (and same stock type, batch, etc.).
Use Case:
Useful when goods of the same kind arrive frequently.
Example:
If 20 units of Material X already exist in Bin 05-02-01, and 10 more arrive, EWM adds them to the same bin (if capacity allows).
Benefits:
- Reduces bin fragmentation
- Improves inventory tracking
4. Near Picking Bin Strategy
In this case, new goods are stored close to bins from which picking occurs most often to minimize travel time during picking.
Use Case:
Best for fast-moving items in e-commerce or retail warehouses.
Example:
Frequently sold products are put away near the dispatch area to ensure quick access for order fulfillment.
Benefits:
- Enhances picking efficiency
- Reduces travel distance
5. Pallet Storage Strategy
When handling palletized goods, EWM considers pallet type, size, and weight before deciding where to place them.
Use Case:
Common in manufacturing or FMCG warehouses where goods are stored on pallets.
Example:
A large pallet may need to go to a specific high-rack bin type, while smaller pallets go to standard racks.
Benefits:
- Ensures safety and stability
- Optimizes bin usage
6. Mixed Storage Strategy
Allows storing different materials in the same bin, based on configuration.
Use Case:
Useful when warehouse space is limited or when products are small and non-hazardous.
Example:
Bin 03-01-01 may contain both Material A and Material B, as long as the bin capacity allows it.
Benefits:
- Maximizes bin utilization
- Provides flexibility
7. Manual Strategy
Sometimes, automation isn’t the best choice — for example, during exceptions or special handling cases.
Here, warehouse staff can manually select the storage bin.
Use Case:
Used for fragile items or returns that need inspection.
Benefits:
- Human control when needed
- Useful for special workflows
- 🧩 How the System Chooses the Right Strategy
SAP EWM uses Storage Type Search Sequences and Putaway Control Indicators to determine which strategy to apply for a given product or process.
For example:
- If the product is fast-moving → Use Near Picking Bin strategy.
- If it’s a bulk item → Use Empty Bin or Addition to Existing Stock.
- If fragile → Assign Manual Strategy.
This flexibility allows warehouse managers to define custom logic for different storage scenarios.
🔍 Real-World Example: How It Works in Practice
Let’s say a food distribution warehouse receives 500 boxes of snacks.
- Inbound Delivery created → Goods arrive at the receiving dock.
- SAP EWM checks product attributes (e.g., category, weight, storage requirement).
- System identifies that the product belongs to fast-moving goods.
- Based on rules, it selects the Near Picking Bin Strategy.
- Warehouse Task is generated → Workers (or robots) move goods to bins near dispatch.
Result: Stock is easily accessible, reducing future picking time.
🌍 Industry Insights: Why Businesses Use Putaway Strategies
With increasing automation and robotics in modern warehouses, Putaway Strategies have become critical for achieving:
- High-speed inbound processing
- Reduced errors
- Better space utilization
- Seamless integration with AGVs (Automated Guided Vehicles) and IoT devices
According to recent logistics studies, companies that use rule-based putaway see up to 30% faster storage times and 15% fewer picking errors — directly impacting customer satisfaction.
💡 Practical Tip for Beginners
If you’re learning SAP EWM:
- Start with simple Fixed Bin or Empty Bin strategies.
- Use simulation or test clients to see how the system selects bins.
- Gradually explore rule-based putaway and custom search sequences.
Hands-on experimentation is the best way to understand how these strategies shape warehouse efficiency.
🚀 Conclusion: Smart Storage, Smarter Warehouse
Putaway might seem like a small step in warehouse operations, but in reality, it’s the foundation of efficiency.
SAP EWM’s Putaway Strategies transform a basic warehouse into an intelligent, automated ecosystem — saving time, space, and cost.
For anyone stepping into the world of SAP logistics, mastering these strategies opens the door to advanced warehouse design, optimization, and automation.
👉 Want to go deeper?
Explore our SAP EWM training programs and learn how to configure, test, and optimize real warehouse scenarios to build your career in logistics management
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