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Tally is not a Warehouse Management Tool

Contributed By:
Published Date:
March 23, 2023

Yes, it's true, tally cannot be used as an effective Warehouse Management tool. In today's dynamic business scenario where product delivery time has been reduced to minutes, a robust Warehouse Management System is required so that you can be near your customer and reach your customer at a faster speed thereby giving you a competitive edge over your competitors

The supply chain is witnessing a paradigm shift and you need to be part of this change to remain competitive in today's dynamic business environment

Cloud-based Warehouse Management System

Tally is an accounting tool

Tally is widely used as an accounting tool and it commands a considerable market share in MSME/SME segment. It is the oldest computer accounting system and commands more than 80% market. It has various modules from ERP to Inventory management, tax compliance,e-way bill, and GST integrations. However, when it comes to warehouse management or Inventory management it has huge limitations.

Warehouse Management

A warehouse management system (WMS) is a software solution that offers visibility into a company's entire inventory and manages supply chain operations from the warehouse to the distribution center to the store shelf.

It provides control and visibility in the warehouse process right from GRN to Sales order processing with correct retrieval methodology like FIFO/LIFO/FEFO. This cannot be done using Tally.

Cloud-based WMS system ensures no deviation between Book and Physical stock. It helps you to identify overstock, shelf-life, manpower utilization, etc.

Ease of Usage

Tally usage is subject to training and the UI is not user-friendly. However, with mobile apps or Handheld terminals, the usage of the modern cloud-based warehouse management systems is much easy and has a low learning curve.

Cloud WMS

Cloud-based solutions have an almost immediate return on investment and a lower total cost of ownership. There is no need for trained manpower to handle hardware, software, and IT. The cloud-based solution is easy to integrate with multiple systems and connects your logistics processes from end to end.

It provides a Multi-Warehouse management feature where your entire supply chain can be orchestrated on a single platform.

Data Security and Data backup is excellent and you are covered for any data breach and hardware crash

Cloud-based WMS solutions, do not have upgrade or maintenance fees. There are no additional IT infrastructure costs or costs for hardware, system, or database administrators. Everything is installed, managed, and maintained by the service provider. There is no significant expenditure in terms of maintaining the IT infrastructure—and more system ownership is more affordable with lower operating costs, enabling you to increase your profit margins.

Warehouse Process and Reports

Warehouse processes can be implemented with a robust cloud-based warehouse management system. The entire warehouse layout can be designed and the location can be named by QR or barcode. The SKU once placed on these locations can be scanned and linked to the locations thereby giving real-time stock visibility. The processes like FIFO/LIFO/FEFO/FMFO can be enforced thereby improving efficiency.

An intuitive dashboard gives you real-time status of the order and shipment thereby saving a lot of time for coordination. These features are not available in Tally as the data entry is manual with most likely a chance of error.


Inciflo is a cloud-based supply chain platform with state of art cloud-based warehousing solution. The Inciflo WMS is easy to use with a low learning curve. It can be implemented in 2-3 days and the entire operation is scan-based done using the mobile app. There is no requirement for scanners or expensive hardware.

Inciflo helps you to book warehouses online through its platform thereby giving you leverage to increase your footprint across India.

Inciflo is integrated with Tally thereby providing seamless data flow from the accounting system to Inciflo WMS.

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Tally is not a Warehouse Management Tool


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