Warehouse Management System (WMS)

A Warehouse Management System (abbreviated as WMS) is referred to as an important ingredient of the supply chain or logistics that is aimed at controlling the storage and movement of materials inside a warehouse, and thereafter processing the transactions linked to them, such as material shipping, receiving materials, put-away and picking of materials. WMS also administer and optimize stock consumption on the basis of real-time details on the status of bin utilisation.  It uses Auto ID Data Capture technology for efficient monitoring of the product flow, such as mobile computers, barcode scanners, wireless LANs and RFID (Radio Frequency Identification). Once the data is collected, either a real-time wireless transmission or a batch synchronization is made to a central databases, which further provides reports on the status of materials in the warehouse.

Basically, the WMS provides a pool of computer-based procedures for handling stock receipts and returns receipts in the warehouse, designs and manages the logical framework of the physical storage facilities, such as racking, etc. It enables a flawless link in the order processing and logistics management such that the products are picked, packed and shipped out of the warehouse facility. WMSs can be used as standalone systems, or as modules of an ERP system or supply chain management. With WMS, you are ensured of control over the movement and storage of materials in a warehouse and that the store and shipping management are automated.

WMSs can also data track products at the time of manufacturing, and serve as an interpreter and message buffer between WMS and ERP systems. Management is not just confined to managing the boundaries of a warehouse, but much beyond the physical boundaries. When it comes managing the warehouse, it involves activities such as inventory management, cost management, inventory planning, IT applications and communication technology to be used. Warehouse management also covers the storage of container, loading and unloading, and is a part of supply chain management (SCM) as well as demand management. The production management also depends on warehouse management to a great extent. An effective warehouse management is a key to the competitive retail chain distribution organization. In warehouse management, you start from some real planning during the container designing of a product, and then proceed with receipt of material. As such, it comprises both warehouse design and process design, whilst also monitors the progress of materials through the warehouse. This way, it involves the warehouse infrastructure, tracking systems as well as communication among product stations.

Warehouse management system is concerned with receipt, movement and storage of goods (finished), through to the intermediate storage locations or to the final customer. In case of the multi-echelon model used for distribution, there can be various levels of warehouses, right from the central warehouse (s), regional warehouses being serviced by the central warehouse (s) and retail warehouses being serviced by the regional warehouses, and so on. Here, the warehouse management aims to assist in the fulfillment of optimal cost of timely order by way of economic resource management. To summaries it, warehouse management is equivalent to the management of storage of goods and services rendered within the warehouse.

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