CHAPTER ONE

INTRODUCTION

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 LANs and potentially Radiofrequency 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. 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 services by the central Warehouses and retail Warehouses at the third level services by the regional Warehouses and so on. The objective of warehousing 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 wall of a Warehouse”

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