Warehouse management system
Warehouse Management Systems (WMS) are a key part of the supply chain and provide directed stock rotation, intelligent picking directives, automatic consolidation and cross-docking to maximize the use of valuable warehouse space. The systems also direct and optimizes stock put-away based on real-time information about the status of bin utilization. Having a WMS in place means you don't depend any more on people's experience, the system has the intelligence.
Warehouse management systems utilize Auto ID Data Capture technology, such as barcode scanners, mobile computers, wireless LANs and potentially 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.
Many warehouse management systems are interfaced with an Enterprise Resource Planning system (ERP), or accounting package. This provides a method of automatically receiving inventory, processing orders, and handling returns.