Choosing Logistics Management Software Development Type. Which Option is the Best for You?

Nowadays, logistics and supply chain management are more than just business functions. They are a vital link that keeps modern business, commerce, and trade on track in the global economy. For a long time, logistics has been associated with long-distance freight and shipments. However, changing business models and customer requirements have drawn in a lot more industry leaders, such as eCommerce, quick commerce, and others.

Together with the new highs we have reached new struggles. Retailers facing high customer demand are struggling to manage order fulfillment, carriers are often out of delivery capacity, and logistics and transportation providers are seeing an influx of demand for B2C delivery and next-day delivery. Thus, they are looking for effective solutions (logistics companies with the latest logistics management software to better manage their shipping costs, efficiency, and speed.

While some logistics and transportation companies turn directly to ready-made, off-the-shelf logistics solutions, others prefer customizable logistics management software to improve their services. There is also the third option: building the relevant technology in-house. But, which approach is the best?

The dilemma of building vs buying is not new and applies to most business operations. There is a huge impact and great implications for this strategic decision. After all, logistics software impacts many roles within the business – management, dispatching, drivers, partners, shippers, and end customers. Like any other business decision, companies have to consider the pros and cons of both options.

This article explores the key considerations for companies when choosing to build or buy logistics software of any kind.

The very first step. Understanding your business goals

Logistics management software is all about replacing manual logistics processes to enable faster growth of delivery volume, greater delivery speed, better risk management, and problem-solving.

When searching for a logistics management software system, it’s crucial to identify the most important and relevant features according to your operational requirements and specific business needs. This will help you choose the right type of logistics software.

Key features in logistics software:

• Warehouse management software
• Supply chain management software
• Transportation management software (including dispatch and route management tools)
• Third-party fleet management software
• Route optimization tools and software
• Logistics scheduling tools
• Driver and vehicle management (such as trucking software)
• Document and cloud management
• Customer experience

Once evaluated and understood the business and organizational pain points and the goals to be achieved, businesses need to get a neutral assessment of their current resources and devise a software introduction plan.

What’s next?

Below we have listed 5 crucial steps and universal tips:

• Select logistics software based on your business size, processes, and compatibility requirements with existing enterprise tech solutions.
• Opt for a solution that offers end-to-end delivery management via a unified interface that can be learned fast.
• Look for advanced features (such as real-time tracking, AWB-based tracking, smart routing, on-the-go optimization, automatic reporting, vehicle capacity utilization, etc.). They do pay off in the long run.
• Choose a software solution that scales up and down as and when required and can be easily adjusted to your updated business model.
• Look for various customization options: custom interface, custom data analytics, custom reporting, custom optimization, and custom workflow management.

Rather than a standard off-the-shelf solution, custom-built SaaS platforms are better options for end-to-end management capabilities. What about in-house development?

In-house logistics management systems

Most retailers considering in-house development assume that they will be increasing savings by using resources that they already have, pushing an in-house IT team to build the logistics management software they desire. They believe it will be the cheaper and faster option. IT teams also think that this way they will have greater control over their program and maximum customization. But is it that true?

In fact, yes, it can be a great option for large companies that have available budgets to use for building and integrating an in-house system, and time for the whole process. Some companies do have success with this method. However, what is often not said is that most of them come out spending significantly more than originally planned (often because the planning, gathering teams, training, the development itself and testing take longer than planned).

That explains why recently many businesses prefer the alternative: using custom-developed logistics management software systems.

9 reasons to choose custom logistics software development

• Time to value
• Technical expertise – benefit from the best practices and expertise of your tech partner
• Easier Integrations across your unique supply chain
• Fleet and driver management capabilities
• One-time development and reduced maintenance costs
• Easier Onboarding and less disruption for teams
• Risk management and safety tools according to your needs and preferences
• The highest levels of customization
• Your own cloud-based software

Every piece of logistics company software must be made-to-measure for the organization that will implement it.

At Utah Tech Labs, we help you get your best results. We take the time to understand your brand, your current challenges, and how to achieve this, all while adhering to your budget requirements.

Start the creation of your custom logistics software with our help.

For free consultation about logistics management software development click here.

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