If you have multiple Products stored in your Warehouse, it might become difficult to decide where to store them and where to Pick-up the items from.
Putaway Rule helps you define a Warehouse Assignment strategy. With Putaway Rule you can define Rules as to which Warehouse should the Item be putaway, on Receipt based on certain Rules. Putaway Rule works based on the Capacity of an Item at various locations and the Priority defined on Putaway Rules. In order to define Putaway Rules, you should first decide the Warehouse layout and decide which items should go in which location. You may decide the location based on different criteria including Fast Moving Items may be kept near the Loading Dock Items of the same Category may be stored together Valuable items may have to be kept in a secured location Based on your use case, you need to define the Capacity of each Item & Warehouse combination and add it to ERPNext so that the system can suggest a Putaway location on Purchase Receipt.
Pick List on the other hand, helps you organize the Picking of Items from a Warehouse where it is for Order fulfillment or for Internal Transfers. This is useful in case the volume of orders is high, inventory carried by a company is high or when too many SKUs are involved. Pick list provides a list that mentions which items need to be picked from which Location, simplifying the fulfillment process for Pickers.
Auto Re-Order is a feature that enables auto replenishment of Stock when the Stock levels fall below a certain threshold. Auto Re-order helps you maintain optimum levels of inventory, so that you do not block capital by overstocking or lose business due to under-stocking.