Yes, System/21 does handle warehouse locations . Although, it depends on the modules you have purchased if you can utilize it. System/21 has a Warehouse Module and there was also a Location module that was written at one point. The location module is a scalled back version of the warehousing module.
Did your organitation purchase either of these?

From: matthew_tt_lo@xxxxxxxxxxx
To: system21@xxxxxxxxxxxx
Date: Fri, 4 Feb 2011 09:39:26 +1100
Subject: [SYSTEM21] SYSTEM21 warehouse location

Hi all,
I am new in this forum & new in System 21.
Would like to ask if system 21 can handle the warehouse location or not.
Currently the stock location is only up until store room (or warehouse) level, does not have the warehouse location like row number, aile number, shelf number.

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