Configuring Putaway Strategies and Storage Type Search Sequences

Explanation

Putaway strategy configuration is the backbone of automated bin determination. Instead of a warehouse clerk manually deciding where a pallet goes, the system evaluates a defined search sequence to find a suitable storage type, storage section, and finally a bin, based on rules attached to the material's storage type indicator or putaway control indicator. In classic ECC WM, putaway strategy is driven by the combination of Storage Type Search (configured per warehouse number and storage type indicator) and Storage Section Search, layered with the strategy set on the storage type itself (for example strategy C for fixed bin, L for open storage nearest bin, or P for addition to existing stock). Each storage type in the search sequence is tried in order until one succeeds; if none succeed, the transfer requirement or transfer order creation fails with a bin determination error, forcing manual intervention via a fallback storage type or manual TO creation. In SAP EWM, putaway logic uses Storage Process determination together with Putaway Control Indicator and Storage Type Search configured in Customizing under warehouse process type and activity area assignment. EWM's approach is more granular: the Warehouse Product master (or Product Master) carries a Putaway Control Indicator that, combined with the Process Type from the inbound delivery item, drives lookup of a Storage Type Search sequence. Each entry in that sequence points to a storage type, and within it, section and bin-type search rules apply, including fixed bin assignment, bulk storage indicators, and addition-to-existing-stock logic (stock placement control). A key design decision is whether putaway should favor consolidation (adding to existing stock of the same material/batch to reduce bin count) versus distribution (spreading stock to optimize picking access or to respect maximum bin capacity). Consolidation strategies check existing stock in candidate bins first; distribution strategies may use bin capacity utilization or empty-bin-first logic. Warehouses running high-velocity fast-moving consumer goods often prioritize near-forward-pick-zone placement, while bulk warehouses prioritize maximizing pallet density. Capacity checks are integral: storage type indicators can enforce maximum weight, volume, or quantity per bin, and the system will skip bins that would be exceeded. Batch and expiration date handling is also relevant — FEFO-aware putaway logic may prefer certain sections for near-expiry stock to keep it visible for outbound FEFO picking, though putaway itself is not the primary FEFO enforcement point (that is typically outbound stock removal strategy). When designing this, teams must decide the granularity of storage type indicators (per material group, ABC classification, or hazard class) because too many indicators create configuration sprawl, while too few cause suboptimal placement. It's common to combine storage type indicator with putaway control indicator (in EWM) to differentiate behavior by process type — e.g., production supply components going to production storage types versus regular stock going to high rack. Testing putaway configuration requires simulating goods receipts across representative material types, checking that the resulting bin determination matches expected storage type and that fallback behavior (manual bin entry, exception queue) triggers correctly when the primary sequence fails. This is validated during integration testing before go-live and revisited whenever new storage areas or material types are introduced.

Code example

-- Conceptual EWM Storage Type Search sequence for Putaway Control Indicator 'HR' (High Rack candidate)-- Sequence entries evaluated in order until a valid bin is found: Sequence 10: Storage Type = HRK1 (High Rack Zone 1)  Section Search: by material group  Bin Type: Euro pallet slot  Stock Placement: Addition to existing stock allowed (same batch) Sequence 20: Storage Type = HRK2 (High Rack Zone 2 - overflow)  Section Search: any available section  Bin Type: Euro pallet slot  Stock Placement: Empty bin only Sequence 30: Storage Type = BULK (Bulk floor storage - fallback)  Section Search: default section  Stock Placement: Empty bin only, capacity check by volume -- If all three fail (e.g., warehouse full), the inbound delivery item-- is queued for manual putaway confirmation by a supervisor.

Real project scenario

A consumer electronics distribution center implemented EWM and initially used a single putaway control indicator for all finished goods, routing everything to one high-rack storage type search sequence. During peak season, high-value serialized items and bulky packaging items were being placed in the same zones, causing pick congestion and serial number tracking complexity during outbound. The project team introduced a second putaway control indicator for serialized high-value goods, pointing to a dedicated secure high-rack zone with stricter capacity and security bin type restrictions, while bulky items were redirected to a separate bulk storage search sequence. This required updating the Warehouse Product master's putaway control indicator via a mass data change and retesting inbound delivery processing to confirm correct routing before the next peak cycle.

Common mistakes

• Using only one putaway control indicator or storage type indicator for all materials, causing suboptimal bin utilization and mixed storage of incompatible goods • Not defining a fallback storage type in the search sequence, causing bin determination failures to halt goods receipt processing • Ignoring capacity checks (weight/volume) during configuration, leading to overloaded bins discovered only during physical putaway • Failing to align putaway strategy with downstream picking strategy, resulting in stock placed far from pick faces • Not testing putaway configuration changes against all material types and process types before go-live, missing edge cases like hazardous materials or oversized items

Best practices

• Design putaway control/storage type indicators around meaningful business groupings (ABC classification, hazard class, value, size) rather than one-size-fits-all • Always configure a fallback storage type or manual putaway path to avoid blocking goods receipt when primary bins are full • Align putaway zone assignment with picking strategy to minimize travel distance for fast movers • Enforce capacity checks (weight, volume, quantity) at the storage type level to prevent overloaded bins • Test putaway search sequences with representative sample data across all material types before go-live and after any storage layout change

Interview angle

Interviewers often ask candidates to explain the difference between storage type search and storage section search, and how putaway control indicators or storage type indicators drive bin determination differently in EWM versus classic WM. A strong answer distinguishes configuration layers (indicator, search sequence, section search, bin type) and explains what happens when the sequence fails (fallback storage type, manual TO, or exception queue), showing practical troubleshooting experience rather than textbook recall.