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Storage: definition & important aspects for procurement experts
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Storage in a nutshell:
Putaway refers to the systematic process of receiving, checking and properly storing goods in the warehouse according to defined storage strategies. Efficient storage is essential for purchasing, as it ensures the availability of goods and minimizes storage costs through optimal use of space.
Example: An automotive supplier receives 250 pallets of small parts every day, scans them by barcode within 30 minutes, checks the quantity and quality and stores them in an automated high-bay warehouse according to the FIFO principle, reducing the throughput time per pallet to 8 minutes.
Contents
What is storage?
In the procurement process, putaway refers to the storage of goods or materials in a warehouse for later use or further processing. The delivered goods are accepted, checked and included in inventory management accordingly. The aim of putaway is to ensure the availability of materials and guarantee a smooth production or sales process.
Core elements of storage
Importance of storage for purchasing
Putaway plays a crucial role for purchasing, as it represents the interface between procurement and internal supply. Efficient storage helps to minimize storage costs, avoid supply bottlenecks and ensure continuous production. By coordinating closely with the warehouse, Purchasing can plan requirements better, order quantities optimally and thus save costs.
Storage: from manual warehousing to digital warehouse management
Putaway is a key process in purchasing and procurement logistics that ensures goods are placed efficiently and safely in the warehouse. Building on the theoretical foundation, practical implementation is crucial to supply chain performance. With increasing demands for speed and accuracy, the need for more efficient storage methods is becoming ever more pressing. The transformation from traditional to modern approaches is therefore essential to remain competitive.
Old: Manual warehousing
Traditional approach: In manual warehousing, storage is mainly carried out by physical labor without supporting technologies. Employees use paper lists to identify storage locations and move goods using simple tools such as forklift trucks. Inventory management is documented manually, which leads to errors. This is characterized by a high workload, slow processes and low transparency in the warehouse inventory. The main problems are incorrect storage, inventory discrepancies and time-consuming search processes.
New: Digital warehouse management
Warehouse Management System (WMS): Modern storage uses digital warehouse management systems to automate and optimize processes. By using WMS, goods movements are recorded in real time and storage locations are optimally allocated. Technologies such as barcode scanning and RFID enable precise tracking of items. The integration of automated conveyor systems and driverless transport systems speeds up the storage process considerably. This leads to reduced error rates, improved storage space utilization and increased transparency of stock levels.
Practical example: Automated high-bay warehouse
A medium-sized automotive supplier implemented an automated high-bay warehouse with an integrated WMS. Thanks to the automation, storage times were reduced by 60% and storage capacity increased by 30%. The storage error rate fell to less than 0.1%. In addition, real-time inventory management made it possible to plan production better and reduced the capital commitment period in the warehouse by 20%.
Conclusion on storage
Efficient storage processes are essential for modern purchasing. By using digital technologies such as RFID and warehouse management systems, inventory accuracy can be increased, costs reduced and processes optimized. The key to success lies in the integration of modern technologies, well-trained staff and well thought-out process design. Despite initial investment costs, the optimization of storage pays off in the long term through increased efficiency and improved planning.
