Most Common Types of Software Used in Logistics

It is difficult to overestimate how extensively specialized software contributes to modern logistics. Such dedicated tools let companies efficiently manage the entire spectrum of logistics operations, like ordering, transportation, merchandise storage, product quality control, demand forecasting, route optimization, and many other essential business processes.

All this combined allows logistics providers to achieve greater efficiency, reduce costs and time, and become more competitive in the market.

The logistics software market is rapidly growing. That applies to both off-the-shelf software and customized software solutions. While developed, the latter products take your company’s peculiarities and traits into account. Thus, you receive the most efficient solution possible.

Below, we will look at the most common types of software used in logistics and provide some practical advice that you could use when developing your own logistics management software.

8 Essential Types of Software Used in the Logistics Industry

Nowadays, the market offers a wide selection and variety of software solutions designed to solve business issues in any niche. When it comes to logistics, we can distinguish several popular types of products as follows.

• Transportation Management Systems (TMS) — they handle tasks such as route optimization, carrier selection and real-time tracking. Their role is to ensure that goods are transported efficiently, cost-effectively and transparently.

• Warehouse Management Systems (WMS) optimize warehouse operations. They oversee inventory tracking, streamline the receipt and placement of goods, assist with picking and packing for shipping, and help monitor worker productivity.

• Route optimization software ensures that delivery routes are efficient and on time. It adapts to real-time conditions, uses predictive analytics and optimizes multi-stop deliveries.
• Inventory management systems offer features such as demand forecasting, reorder point notifications and multi-location management, often integrating with tools such as barcoding and RFID for accurate tracking.

• Fleet management systems are aimed at companies with fleets of vehicles and focus on vehicle maintenance, fuel management, driver monitoring and GPS-based route planning.
• Supply chain management (SCM) software manages the broader spectrum of a company’s supply chain. It coordinates with suppliers, handles procurement and provides real-time inventory visibility.
• Cargo and freight tracking apps provide stakeholders with real-time updates on shipments. They use GPS for location tracking and also offer features such as temperature monitoring for sensitive cargo.

• Barcode and RFID scanning software provides accurate inventory and asset tracking. Integrated with systems such as WMS, it streamlines data collection and reduces manual errors.

Of course, this list of possible software is far from being complete, but it covers most of the company’s needs in this niche. Moreover, if you develop a customized product, it can include all the features you need in almost any combination.

How to Build a Custom Logistics Management Software?

With a structured and systematic approach to software product development, you will more likely obtain the best results and make the most of your available budget. Below is a step-by-step process used in custom logistics management software development:

1. Define the objectives and requirements

To start with, define what you want to achieve with your logistics management software. During this phase, you want to gather specific requirements for the software product, understand current pain points, and specify your software scope, users, and primary objectives.

Besides, before you immerse yourself in development, you may find it helpful to conduct some market research.

2. Choose the Right Technology Stack

To build efficient and functional software (applies not only to logistics), it is fundamentally important to choose an appropriate technology stack. You should determine the proper programming languages, auxiliary tools, and relevant frameworks.

3. Development Phase

That is where the actual development process starts. The tasks are distributed among the development team members (primarily divided into frontend and backend). At the same time, it is crucial to involve experienced staff because it is difficult to overestimate how important the best development practices are. This approach will result in a scalable, reliable, and secure software product.

4. Third-Party Integration (API)

To extend logistics software functionality, you will have to integrate third-party tools or apps into it. They can be GPS tracking systems, billing platforms, or ERP. The main thing here is to guarantee uninterrupted data exchange among built-in software modules and external systems.

5. Quality Assurance (Testing)

If you include a thorough testing phase, you will make sure your software is bug-free and functions as intended. During the QA process, real-life scenarios are simulated to evaluate how your software works. Moreover, the testing phase can also involve potential users who will provide valuable feedback.

6. Product Deployment

After you test your software successfully, it will be ready for deployment in a working environment. Sometimes, it can be a one-time process, but in most cases, it takes place in stages. Besides, it is vital to provide users with all the necessary reference resources or manuals and make sure they can quickly adapt to a new system.

The appropriate team of developers can build a modern web platform or mobile app for a logistics company. Such products will optimize its work and make the business more efficient and profitable.

If you are looking for a reliable technology partner to assist you in innovating your company, contact us and let us discuss the details!

Andriy Nayda Head of Web & Mobile Department at SmartTek Solutions