CHAPTER 1 1.1 Introduction

A stock management system 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, put away and picking. The systems also direct and optimize warehouse put away based on real-time information about the status of bin utilization.

The objective of a stock management system is to provide a set of computerized procedures to handle the receipt of warehouse and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g. racking etc), manage the warehouse within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility.

In its simplest form, the stock management system can data track products during the production process and act as an interpreter and message buffer between existing ERP (Enterprise resource planning) and stock management systems. Stock 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. Even production management is to a great extent dependent on stock management. Efficient stock 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.