Warehouse Management software is designed to help reduce costs through effective warehouse processes. It is aimed at those companies that need to receive and ship goods, while maintaining an optimum utilization of space and knowing specifically where all goods are stored at any given time. Items can be stored either in predetermined bins or in random bins depending on the need for optimization and the expertise of the warehouse personnel. It is also possible for WMS to keep track of the quantity of items within each bin. Fundamentally, warehouse management is the physical management of stock. In some cases, stock may be stored for an extended time. In other warehouses that implement just in time practices inventory experiences rapid turnover and the warehouse functions as a distribution center. A warehouse can contain raw materials, work-in-process inventory, finished goods, supplies, and possibly repair parts. As with other elements in the any distribution system, the objective of the warehouse management software is to minimize costs and maximize customer service.
To do this, efficient warehouse operations perform the following:
- Provide timely customer service.
- Keep track of items so they are located readily and correctly.
- Minimize the type of physical effort and thus the costs of moving goods in and out of storage.
- Provide communication links with customers.