What’s a warehouse management system?

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A warehouse is used to store inventory items, and a warehouse management system tracks the movement of these items. It is an important part of the supply chain and can incorporate asset tracking technology. A manager is responsible for designing and optimizing the system and may use a primary database.

A warehouse is the area a business uses to store inventory items. Inventory typically includes products that a business sells or manufactures, and in many cases can include materials and tools used in production processes. When a company has a warehouse management system, that company implements a workflow or set of steps that must be performed when inventory items are received, shipped, or deployed to other locations. This system can also be used to track the count and health of various items, allowing warehouse managers to determine when to restock, repair and replace items.

Most business process experts consider a warehouse to be an important part of the supply chain. The supply chain describes all the steps that products go through, starting with production and ending with introduction to the market. The effectiveness of a warehouse management system affects and is affected by factors such as production speed, demand levels and prices.

An inventory or warehouse manager is usually responsible for designing and optimizing a warehouse management system. He or she may be responsible for keeping up with new trends in technology that can improve a system’s efficiency. A manager can also monitor areas where costs can be reduced and determine solutions for improvement.

It is common for a manager to incorporate asset tracking technology into a warehouse management system. Some of the most common types of asset tracking systems involve scanning barcodes or reading radio frequency identification (RFID) tags. Each of these technologies allows warehouse workers to scan inventory items to read information about items on a computer monitor, such as date received, user notes, and contract information when scanned items are leased.

This type of warehouse management system requires the use of a primary database. Information about all items in a warehouse is stored in a database. Most warehouses include multiple employees and workstations. Larger companies may need multiple warehouses that communicate with each other. For these reasons, a database is typically part of a local area network (LAN). A LAN describes the servers, workstations, printers, and all other computer-related components that interact in day-to-day operations in a contained geographic location.

To create an efficient warehouse management system, a manager can decide how asset tracking technology is used. He or she may be responsible for determining what information belongs in a database and what annotation style employees should use when updating files. Managers periodically train and assess workers in using a system.

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