The invention relates to a thin-type material intensive warehouse management system and a method thereof; material can be stored at any empty position inside a warehouse by a manager in a random way; before the material is stored, contact conductive detecting devices at all the storage positions are scanned by the system, and all the empty positions inside the warehouse are prompted by lighting lamps; and after the material is stored, the physical position where the material is positioned is detected by the system, and recording and other processing steps are carried out. If the needed material is taken out, only the bar code or any other attribute information of the material is needed to be input into a terminal of a computer, the physical position where the material is positioned is searched by the system in a background database, and the indicator lamp at the position is lightened at the same time, so that the manager is prompted. The invention can be used for containing tens of thousands materials within a limited space, and the needed material is not needed to be manually found, so that the space utilization rate and the management efficiency are greatly improved.