Transport logistics software nowadays provides vast opportunities for transportation optimization. The benefits are obvious: software helps reduce the number of inappropriate routes, remotely track fuel consumption and vehicle speed, etc. But the main advantage is the automation of the company’s logistics sector.
Automation allows us to make the transportation process predictable and stable, eliminating the human factor errors as thoroughly as possible. The delivery system is no longer a black box.
The main purpose of using transport logistics software is to reduce the length of routes and the number of cars used. There is an impressive list of tools that contribute to the more efficient operation of the enterprise, like:
- Automated routing
Various TMS (transport management systems that automate logistics) help plan the number of stops along the way, take into account the work schedule, and calculate operating costs (e.g., gasoline consumption).
- Monitoring and tracking
With the help of GPS, transport logistics software allows you to analyze measures of speed, deviations from the route, vehicle occupancy, general traffic congestion, and change the route if necessary in real time. Cloud services are usually used for monitoring, they are discussed below.
- Digital paperwork
Electronic document management optimizes the entire delivery chain and therefore is necessary for both external carriers and companies that have their own vehicle fleet. A logistics software development company, such as Sirin Software, can help simplify interactions with the customer, the carrier, and the internal staff (for example, between the sales and logistics departments) by using electronic document management solutions.
What a Logistics Software Development Company Does
At all three above points, different control systems and logistics software development services can be involved. The main criterion should be the flexibility of the system. The “SaaS” (software as a service or “SAD” – software on demand) model is gaining popularity. Companies can rent business applications for planning and management. This form of outsourcing provides all of the benefits listed above for small and medium-sized companies without the need to buy transport logistics software.
Let’s take a look at some examples of cloud TMS transportation and logistics software solutions.
Web apps and cloud services
First off, let’s take a closer look at electronic document management. Through logistics software development services, electronic document flow helps reduce documentary shipping costs by up to 80%. It is worth considering that this also speeds up the receipt of money from the client, simplifies business processes in the supply chains.
Not every company is ready to accept readymade software solutions, as this can force a laborious restructuring of the company structure, which can be more expensive than custom logistics and transportation software development. For instance, Sirin Software provides a wide range of personalized logistics software development services.
In line with web technologies, customer relationship management (CRM) systems are also developing. You can deploy CRM both in cloud storage and on a local server. The essence of the system is to help you manage and analyze customer experiences to make them ultimately better. CRM systems are created by logistics software development companies such as Microsoft, SAP, and so on.
A CRM system is essential among transportation and logistics software solutions, as the quality of service and courtesy are important for long-term customer service. In 2008, only 12% of enterprises used CRM, now this figure has increased to 87%.
As an example, UPS handles 55% of purchases online while its closest competitor does only 10%. Harris Interactive ranked the company #1 for trust and honesty in communications among US customers.
The reason why remote servers (cloud storages) squeeze out local servers is understandable: cloud storage in terms of logistics software development services is cheaper because it does not require special equipment and personnel.
The development of integrated transportation and logistics software solutions using the API (interface for interaction between the site and third-party programs and servers) allows you to solve the problem of interfaces, reduce the time cycles of data exchange, and ensure the reliability of information for all systems used. The integrated logistics and transportation software development helps enhance interaction between partner companies, exactly through the reconciliation of interfaces.
Prospects of Transport Logistics Software
As the transport logistics software market grows, automation and efficiency gains through software have become a necessary part of maintaining a competitive edge for transportation-related businesses. The demand for logistics and transportation software development is growing – the expected CAGR of the industry by 2023 is 8.20%. Moreover, during the pandemic, the demand for automating the manual process has increased even more.
Another trend that is increasing interest of logistics software development companies in the automation of warehouse operations through robotics. Accordingly, we should expect new transportation and logistics software solutions from the industry leaders: Tech Mahindra, Advantech Corporation, SAP AG, and others.