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Warehouse basics · 7 min read

What is a WMS? A plain-English guide for Indian ecommerce and 3PL teams

What a warehouse management system does, how it differs from an ERP or Shopify, and the signs you need one.

A warehouse management system (WMS) is software that knows where every unit in your warehouse physically is (which bin, which batch, which expiry) and runs the work of moving it: receiving, putaway, picking, packing, dispatch and returns.

WMS vs ERP vs Shopify

Your storefront knows how many units you can sell. Your ERP knows what they're worth. A WMS knows where they are and which one to ship next.

QuestionStorefrontERPWMS
How many can I sell?YesYesYes
Which bin is it in?NoNoYes
Which batch expires first?NoSometimesYes
Was the right item packed?NoNoYes

The core jobs of a WMS

  1. Inbound: receive against purchase orders and split good from damaged.
  2. Putaway: decide which bin each carton goes to. A good WMS uses product and bin dimensions; see volumetric putaway.
  3. Inventory: track lots with the attributes you care about, such as batch, expiry, size or shade.
  4. Picking: generate picklists that follow your rotation rule. Read FEFO vs FIFO.
  5. Packing and dispatch: scan-check every unit, generate the AWB and print labels.
  6. Returns: grade returns and put them back where they belong.

Signs you need one

  • You've oversold during a sale. See how to stop overselling.
  • Pickers rely on memory, and new staff take weeks to get up to speed.
  • Short-dated or wrong items reach customers.
  • Nobody can explain why stock on the system doesn't match the shelf.

What to look for in India

GST-ready documents, marketplace connectors for Amazon.in and Flipkart, pincode-based routing across warehouses, and a team that can go live on your floor rather than over email.

We built Waretech after 20+ years of running warehouses. See how it works or book a demo.

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