Master data

The master data is the central hub in the Warehouse Management System (WMS). They must be consistently maintained and updated so that orders in the warehouse can be processed efficiently and smoothly. 

There are different types of master data.

Article master data contains the basic information about products, such as 

• Identification (e.g., article number, EAN code)
• Description (e.g., short article description, manufacturer type designation)
• Classification (e.g., ERP product group number)
• Attributes (e.g., weight, color)
• Order information (e.g., order unit, minimum order quantity)
• Multimedia supplementary data (e.g., images, PDF files)
• Classifications (e.g., customs goods, hazardous materials)

In the storage location master data, the type of loading aids allowed, how many loading aids of a specific type can be accommodated, and the dimensions and weight information of the storage location are recorded.

Loading aids master data contains data on aids used to move goods within the warehouse. Examples include "Euro pallet", "container 60x40", or "small carton". The key information here is the dimensions and weight of the loading aids.

In the partner master data, information on all involved parties, their contacts, address details, and role assignments (e.g., customer, supplier, logistics service provider, or client) are maintained.

Master data also forms the foundation for smooth automation of processes in the WMS. Automated systems rely on accurate master data to:

• Maintain accurate inventory levels and know where each product is at any given time.
• Implement optimal storage strategies such as FIFO (First In, First Out) or LIFO (Last In, First Out) to control the flow of goods in the warehouse.
• Automate complex warehouse processes such as cross-docking or multi-channel fulfillment. These processes heavily depend on correct master data to efficiently manage supply chains.

Incorrect or incomplete master data can have serious consequences for the entire warehouse. For example, an item could be stored in the wrong location if the master data regarding storage capacity is incorrect. This could lead to:

• Picking errors, where the wrong product is delivered to customers.
• Extended warehouse times, as employees must search for items if storage location data is inaccurate.
• Inventory discrepancies, if incorrect quantities or locations are recorded in the master data.

Master data enables optimal use of warehouse space. Information such as product dimensions, weight, and stackability determines where and how a product is stored. With this data, Warehouse Management Systems can:

• Develop placement strategies that make optimal use of available space (e.g., small items in the front of the warehouse, heavy items at the back).
• Control inventory levels to avoid overstocking while ensuring no product falls below minimum stock levels. 

The master data in Warehouse Management is closely linked to other departments and processes within the company, for example:

• Procurement and purchasing: Orders are based on the inventory levels recorded in the master data. Incorrect stock data could lead to ordering too much or too little.
• Financial accounting: The inventory valuation, necessary for accounting, directly depends on accurate master data for stock levels.
• Sales and order processing: The ability to ship orders quickly and correctly depends on accurate product and storage location data.

Master data thus serves as a central link between different business areas and allows seamless integration of warehouse processes into the entire value chain.

In many industries, there are strict regulations regarding the storage of certain products (e.g., hazardous materials, perishable goods). Master data for these products (e.g., temperature requirements, storage zones) is essential to comply with legal requirements. Poor management of this master data can lead to severe legal consequences and operational risks. 

Conclusion: Master data is the heart of Warehouse Management. It permeates and controls all warehouse processes, from product identification and storage location management to inventory control and integration with other company processes. It ensures the efficiency, accuracy, and automation of warehouse management and is indispensable for the economic and successful operation of a warehouse. Without consistent and up-to-date master data, modern warehouse management would be nearly impossible, as this data serves as the static foundation for all dynamic warehouse processes.