Warehouse management system
Encyclopedia
A warehouse management system, or WMS, is a key part of the supply chain
and primarily aims to control the movement and storage of materials within a warehouse
and process the associated transactions, including shipping, receiving, putaway and picking. The systems also direct and optimize stock putaway based on real-time information about the status of bin utilization.
Warehouse management systems often utilize Auto ID Data Capture (AIDC)
technology, such as barcode scanners, mobile computers, wireless LAN
s and potentially Radio-frequency identification (RFID) to efficiently monitor the flow of products. Once data has been collected, there is either a batch synchronization with, or a real-time wireless transmission to a central database. The database can then provide useful reports about the status of goods in the warehouse.
The objective of a warehouse management system is to provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g. racking etc.), manage the stock within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility.
Warehouse management systems can be stand alone systems, or modules of an ERP
system or supply chain execution suite.
The primary purpose of a WMS is to control the movement and storage of materials within a warehouse – you might even describe it as the legs at the end-of-the line which automates the store, traffic and shipping management.
In its simplest form, the WMS can data track products during the production process and act as an interpreter and message buffer between existing ERP and WMS systems.
Warehouse Management is not just managing within the boundaries of a warehouse today, it is much wider and goes beyond the physical boundaries. Inventory management,inventory planning, cost management, IT applications & communication technology to be used are all related to warehouse management. The container storage, loading and unloading are also covered by warehouse management today.Warehouse management today is part of SCM and demand management. Even production management is to a great extent dependent on warehouse management. Efficient warehouse management gives a cutting edge to a retail chain distribution company. Warehouse management does not just start with receipt of material but it actually starts with actual initial planning when container design is made for a product. Warehouse design and process design within the warehouse (e.g. Wave Picking
) is also part of warehouse management. Warehouse management is part of Logistics and SCM
.
Warehouse Management monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations.
Warehouse management deals with receipt, storage and movement of goods, normally finished goods, to intermediate storage locations or to final customer. In the multi-echelon model for distribution, there are levels of warehouses, starting with the Central Warehouse(s), regional warehouses serviced by the central warehouses and retail warehouses serviced by the regional warehouses and so on. The objective of warehouse management is to help in optimal cost of timely order fulfillment by managing the resources economically. Warehouse management = "Management of storage of products and services rendered on the products within the four walls of a warehouse"
supports a double-entry inventory management system which allows to manage complex needs very easily: tracking stocks of suppliers/customers, full traceability, accounting links, etc.
OpenERP
supports multi-warehouse management based on hierarchical locational structure. Manage your own internal locations, external locations, customers, suppliers or manufacturing inventories.
Supply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
and primarily aims to control the movement and storage of materials within a warehouse
Warehouse
A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload...
and process the associated transactions, including shipping, receiving, putaway and picking. The systems also direct and optimize stock putaway based on real-time information about the status of bin utilization.
Warehouse management systems often utilize Auto ID Data Capture (AIDC)
Automated identification and data capture
Automatic Identification and Data Capture refers to the methods of automatically identifying objects, collecting data about them, and entering that data directly into computer systems...
technology, such as barcode scanners, mobile computers, wireless LAN
Wireless LAN
A wireless local area network links two or more devices using some wireless distribution method , and usually providing a connection through an access point to the wider internet. This gives users the mobility to move around within a local coverage area and still be connected to the network...
s and potentially Radio-frequency identification (RFID) to efficiently monitor the flow of products. Once data has been collected, there is either a batch synchronization with, or a real-time wireless transmission to a central database. The database can then provide useful reports about the status of goods in the warehouse.
The objective of a warehouse management system is to provide a set of computerized procedures to handle the receipt of stock and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g. racking etc.), manage the stock within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility.
Warehouse management systems can be stand alone systems, or modules of an ERP
Enterprise resource planning
Enterprise resource planning systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application...
system or supply chain execution suite.
The primary purpose of a WMS is to control the movement and storage of materials within a warehouse – you might even describe it as the legs at the end-of-the line which automates the store, traffic and shipping management.
In its simplest form, the WMS can data track products during the production process and act as an interpreter and message buffer between existing ERP and WMS systems.
Warehouse Management is not just managing within the boundaries of a warehouse today, it is much wider and goes beyond the physical boundaries. Inventory management,inventory planning, cost management, IT applications & communication technology to be used are all related to warehouse management. The container storage, loading and unloading are also covered by warehouse management today.Warehouse management today is part of SCM and demand management. Even production management is to a great extent dependent on warehouse management. Efficient warehouse management gives a cutting edge to a retail chain distribution company. Warehouse management does not just start with receipt of material but it actually starts with actual initial planning when container design is made for a product. Warehouse design and process design within the warehouse (e.g. Wave Picking
Wave Picking
Wave picking is a term for a process used in a Warehouse Management System to describe a process to support managing the work of a warehouse or distribution center. Wave Picking is an application of a Short Interval Scheduling, to assign the workload into intervals to allow management to...
) is also part of warehouse management. Warehouse management is part of Logistics and SCM
Supply chain management
Supply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers...
.
Warehouse Management monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations.
Warehouse management deals with receipt, storage and movement of goods, normally finished goods, to intermediate storage locations or to final customer. In the multi-echelon model for distribution, there are levels of warehouses, starting with the Central Warehouse(s), regional warehouses serviced by the central warehouses and retail warehouses serviced by the regional warehouses and so on. The objective of warehouse management is to help in optimal cost of timely order fulfillment by managing the resources economically. Warehouse management = "Management of storage of products and services rendered on the products within the four walls of a warehouse"
Warehouse management software
For the companies that want to integrate their other departments with their warehouse management, ERP softwares are necessary. In this respect, OpenERPOpenERP
OpenERP is an open source comprehensive suite of business applications including Sales, CRM, Project management, Warehouse management, Manufacturing, Accounting and Human Resources. OpenERP has separate client and server components...
supports a double-entry inventory management system which allows to manage complex needs very easily: tracking stocks of suppliers/customers, full traceability, accounting links, etc.
OpenERP
OpenERP
OpenERP is an open source comprehensive suite of business applications including Sales, CRM, Project management, Warehouse management, Manufacturing, Accounting and Human Resources. OpenERP has separate client and server components...
supports multi-warehouse management based on hierarchical locational structure. Manage your own internal locations, external locations, customers, suppliers or manufacturing inventories.
See also
- Data warehouseData warehouseIn computing, a data warehouse is a database used for reporting and analysis. The data stored in the warehouse is uploaded from the operational systems. The data may pass through an operational data store for additional operations before it is used in the DW for reporting.A data warehouse...
- Automated storage and retrieval systemAutomated Storage and Retrieval SystemAn automated storage and retrieval system consists of a variety of computer-controlled methods for automatically placing and retrieving loads from specific storage locations...
- Document automationDocument automationDocument automation is the design of systems and workflow that assist in the creation of electronic documents. These include logic based systems that use segments of pre-existing text and/or data to assemble a new document. This process is increasingly used within certain industries to assemble...
in supply chain management & logistics - Enterprise resource planningEnterprise resource planningEnterprise resource planning systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application...
- Inventory management softwareInventory management softwareInventory management software is a computer-based system for tracking product levels, orders, sales and deliveries. It can also be used in the manufacturing industry to create a work order, bill of materials and other production-related documents. Companies use inventory management software to...
- Manufacturing resource planningManufacturing resource planningManufacturing resource planning is defined by APICS as a method for the effective planning of all resources of a manufacturing company...
- Next NeXTNext, Inc. was an American computer company headquartered in Redwood City, California, that developed and manufactured a series of computer workstations intended for the higher education and business markets...
- Pick and packPick and PackPick and pack is a part of a complete supply chain management process that is commonly used in, but not limited to, the retail distribution of goods. It entails processing small to large quantities of product, often truck or train loads and disassembling them, picking the relevant product for each...
- Shipping list
- Voice Directed WarehousingVoice Directed WarehousingVoice-directed warehousing refers to the use of the voice direction and speech recognition software in warehouses and distribution centers...
- WarehouseWarehouseA warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload...
- Wave PickingWave PickingWave picking is a term for a process used in a Warehouse Management System to describe a process to support managing the work of a warehouse or distribution center. Wave Picking is an application of a Short Interval Scheduling, to assign the workload into intervals to allow management to...
- Open Source WMS on Sourceforge.