How Directed Putaway Transforms Warehouse Efficiency

Executive Summary

Across multiple 3PL, chemical distribution, and manufacturing operations, Codeworks Enterprise replaced operator-driven putaway processes with configurable directed and suggested putaway logic tailored to each facility's operational requirements.

Despite differences in industry, product type, and facility layout, each operation faced the same core challenge: inventory placement decisions depended heavily on tribal knowledge and operator discretion. This created inconsistent processes, inventory inaccuracies, compliance risk, inefficient space utilization, and limited operational visibility.

Using Codeworks Enterprise, each operation implemented system-guided putaway rules aligned to its unique business requirements, including lot control, FEFO enforcement, hazmat segregation, dimension-based slotting, assembly-line segmentation, and account-specific storage strategies.

The result was improved inventory accuracy, stronger compliance, optimized warehouse utilization, reduced operational variability, and measurable KPI visibility across facilities ranging from 150,000 to 750,000 square feet.

The Challenge:

Across all operations, warehouse putaway decisions were historically driven by operator experience rather than standardized system logic.

In many facilities, operators determined storage locations based on familiarity with products, available space, or informal operational habits. While workable in smaller or less complex environments, this approach became increasingly difficult to manage as operations scaled across multiple clients, facilities, product types, and compliance requirements. The operational impact included:

• Inconsistent inventory placement
• Increased misallocation risk
• Dependency on tribal knowledge
• Difficulty onboarding new employees
• Poor space utilization
• Compliance exposure for regulated products
• Inefficient downstream picking processes
• Limited KPI visibility for warehouse leadership

The challenge became even more complex in multi-client environments where different customers required entirely different storage rules within the same facility.

The SC Codeworks Solution:

Codeworks Enterprise implemented configurable directed and suggested putaway workflows designed to adapt to each operation's requirements without custom development. The platform enabled operations to configure putaway logic at the account, item, zone, and location level, including:

• Account-specific storage strategies
• Dedicated or shared slotting rules
• FEFO and expiration-window enforcement
• Hazmat segregation and cooler requirements
• Dimension-based slotting
• Cascading overflow logic
• Manufacturing process segmentation
• Assembly-line product grouping
• KPI and warehouse performance tracking

For operations where rigid directed putaway was not practical, suggested putaway provided optimized location recommendations while still allowing operator flexibility when needed. This approach allowed each facility to standardize inventory placement while preserving the operational flexibility required in dynamic warehouse environments.

Multi-Client 3PL Operations

One large multi-client 3PL specializing in food and beverage distribution operated facilities ranging from 200,000 to 750,000 square feet, each supporting customers with very different storage requirements.

Some accounts required products to remain grouped by item, while others required dedicated storage locations reserved for specific customers or SKUs. Prior to implementation, operators relied heavily on personal experience to determine where inventory should be stored, resulting in inconsistent execution and limited process standardization.

Codeworks Enterprise introduced configurable account-level putaway rules that allowed multiple storage strategies to coexist within the same facility. The system calculated standard pallet configurations by item, determined storage capacity by location, and directed inventory into the appropriate warehouse zones based on operational rules such as cooler storage requirements or floor storage preferences.

Inventory mislocation errors were reduced by approximately 90 percent, significantly improving inventory control and operational consistency.

Chemical Distribution Operations

A chemical distribution operation managing multiple large-scale facilities required strict inventory segregation and regulatory compliance controls.

Prior to implementation, operators selected putaway locations based primarily on availability and familiarity with products. In a chemical environment, this introduced significant operational and compliance risk, particularly for products requiring cooler storage or separation from incompatible hazmat classifications.

Codeworks Enterprise enforced segregation rules directly within the putaway process. Warehouse zones were configured around hazmat classifications, storage requirements, and throughput patterns, ensuring products could only be directed into compliant storage locations. By embedding compliance rules into system-guided workflows, the operation reduced dependency on operator memory and improved consistency across facilities.

Compliance-related exceptions were virtually eliminated, reducing violations by an estimated 98–100 percent across warehouse operations.

Manufacturing & Assembly Support Operations

Codeworks Enterprise also supported manufacturing-focused operations where inventory organization directly impacted downstream production efficiency.

One operation supplying parts to manufacturing plants managed highly variable inbound inventory arriving on non-standard pallets and in inconsistent quantities. Because rigid directed putaway was impractical, the operation implemented suggested putaway logic that recommended optimal storage locations while still allowing operational flexibility.

Inventory was segmented using a multi-layer organizational structure. Products were first grouped by their next processing step, separating bulk-to-plant shipments from items requiring repackaging. Inventory was then further segmented by assembly-line destination to improve downstream picking efficiency.

Another manufacturing operation utilized flow rack storage with varying rack heights across warehouse zones. Operators previously determined storage placement manually, often resulting in improperly slotted inventory and inefficient use of vertical storage space.

Codeworks Enterprise introduced dimension-based zone routing combined with cascading overflow logic. Products could overflow into approved secondary zones when primary locations were full while still preserving slotting integrity and operational consistency.

Forklift travel was reduced by approximately 32 percent through improved slotting logic and inventory positioning.

Advanced FEFO & Lot-Control Operations

A multi-client 3PL operation managing food-based inventory required strict lot separation and expiration-window enforcement across several facilities.

Prior to implementation, inventory was placed primarily based on available space, resulting in mixed locations, inconsistent lot separation, and difficulty maintaining proper FEFO sequencing. In some cases, products expired in storage before being shipped.

Codeworks Enterprise enforced FEFO compliance during putaway by preventing incompatible lot and expiration-date combinations within the same location. Expiration windows could be configured at the individual item level, allowing each product to follow its own operational tolerance requirements.

The implementation required standardized expiration-date capture at receiving, accurate location sizing, and detailed item-level configuration. Once deployed, the system established consistent lot separation and eliminated reliance on manual decision-making during putaway.

Expired inventory was reduced by approximately 95 percent through improved lot control and FEFO enforcement.

Business Impact

Across all operations, Codeworks Enterprise transformed putaway from an operator-dependent process into a standardized, system-guided workflow. Key business outcomes included:

• Improved inventory accuracy
• Reduced inventory misallocations
• Stronger regulatory and FEFO compliance
• Better warehouse space utilization
• Reduced dependency on tribal knowledge
• Faster employee onboarding
• Improved downstream picking efficiency
• Increased KPI visibility for warehouse leadership
• Greater operational consistency across facilities

By embedding warehouse logic directly into system workflows, operations were able to scale more effectively while improving inventory control and operational predictability.

Why Codeworks Enterprise

No two warehouse operations are identical. Each customer required a different combination of putaway rules, operational constraints, and inventory controls.

Codeworks Enterprise was designed to accommodate that complexity through configurable warehouse logic that can be applied at the account, item, zone, and location level — without requiring custom development.

Whether the requirement is hazmat segregation, FEFO enforcement, dimension-based slotting, manufacturing segmentation, or customer-specific storage rules, the platform allows operations to standardize execution while adapting to the realities of each warehouse environment. The result is a scalable warehouse management platform that replaces tribal knowledge with repeatable, auditable, and measurable operational processes across facilities of any size or complexity.