A data warehouse is a relational database tool that has been designed to simplify the otherwise complex analysis needed to optimize inventory management and facility management. It automates the process of gathering data, organizing and combining relevant current and historical data – often from multiple sources requiring different skills or security levels to merely access. The data is then formatted for use by the analyst with programs such as Microsoft Access, Excel, MS-SQL or report writers like Crystal Reports. The data warehouse is designed to serve anyone with a question that requires simplified access to historical data or current conditions. It is a dynamic analysis and data mining tool for optimizing warehouse operations.

The data warehouse is usually managed on a separate system from the production systems used to run the warehouse. The reasons behind this are security, convenience, and the fact that some data warehouse queries are intense and could otherwise slow down the production systems that are needed to support ongoing operations. Using a separate system for the data warehouse resolves these issues.