How to Build a Logistics Management Software?

What is Logistics Management Software? 

Logistics management software is a digital solution for managing and automating business processes in the logistics industry. It is a digital system that helps businesses manage their supply chains. The software optimizes operations, reduces manual work, and improves efficiency by using data and automation. 

This software is responsible for managing works including: 

• Inventory Management

Inventory management provides immediate updates on available inventories, restocks products, and aids in stock information. This improves demand-supply and storage while removing errors.

• Transportation

Logistics management software enhances transportation. It plans shipment schedules and manages vehicle tracking and delivery time to minimize costs and boost transportation presence.

• Warehouse Management

The software is responsible for tracking stock, order selection, and packing. This enhances precision, minimizes mistakes, and enhances the flow of activities in the warehouse.

• Manufacturing

Logistics management software aligns the production plans and supply schedule and incorporates the material and distribution flow. This helps avoid time loss and enhances overall performance.

In addition, logistics management software facilitates data analytics, order fulfillment, returns management, and several other supply chain business operations. Now that you have understood the workings of the software, let’s discuss the reasons to invest in this software. 

3 Reasons Why to Invest in Logistics Software Development

Several types of businesses use logistics management software, including retail, eCommerce, grocery, and companies that use third-party logistics. These companies are using logistics software more and more these days. Let's look at the three factors that are driving an increasing number of businesses to use software.

1. Increased Efficiency and Cost Savings

Did you know that logistics management software can reduce operational costs by up to 12%?

By automating processes and optimizing routes, companies increase productivity, reduce fuel expenses, and reduce human error. On the other hand, automation in logistics businesses increases warehouse efficiency by 30%. And this automation comes into action when you integrate LMS into your business. 

2. Improved Customer Satisfaction

Globally, 86% of customers value real-time tracking and fast deliveries. Logistics management software plays an essential role in increasing visibility and giving accurate delivery timelines, which ultimately enhances customer satisfaction. 

3. Enhanced Decision Making

A right decision can take your business to the next level, and a wrong decision can impact huge losses and disappoint you so much.

To avoid this, businesses utilizing logistics software see immense growth in productivity by leveraging data analytics for better decision-making. According to research, real-time insights into inventory levels, transportation, and delivery performance help reduce stockouts by 18% and improve overall forecasting accuracy.

Now, let’s examine the 15 key features that a well-designed shipping and logistics management software offers. 

Top 15 Features of Logistics Management Software 

The features are one of the essential things to consider when building logistics management software since they define how your software works and how users experience it. Well-designed features can improve usability and give a more competitive advantage.

Let’s find out what key features you should incorporate into your logistics management software to get the most from it:

1. Route Optimization

One key feature that must be integrated into your logistics management software is route optimization. It helps calculate the most efficient delivery routes based on distance, traffic, weather, and other factors and reduces cost and delivery time. 

2. Real-Time Shipment Tracking

Real-time shipment tracking is an essential feature that provides live updates on the status and location of shipments. This helps enhance visibility and improve customer satisfaction. 

3. Inventory Management

How can logistics management software be developed without an inventory management feature?

Of course, it's impossible. The feature not only tracks stock levels but also manages product movement in the warehouse and helps prevent overstocking or stockouts by maintaining accurate inventory data. 

4. Warehouse Management

You must incorporate warehouse management features into your software since it streamlines warehouse operations. It streamlines and manages inventory storage, picking, packing, and shipping, enhances overall efficiency, and minimizes human error. 

5. Order Management

The order management feature automates the order fulfillment process from receipt to dispatch. This ensures timely delivery and accurate order processing, which are essential factors for success in the supply chain business. 

6. Fleet Management

This feature helps track fleet vehicles, optimize routes, monitor fuel usage, and maintain vehicles. Implementing this will improve fleet efficiency and reduce costs.

7. Automated Billing and Invoicing

Logistics software helps with invoice generation, payment processing, and shipment tracking. It offers features that automate invoice creation and tracking and ensure accurate billing based on shipments, deliveries, and services rendered. 

8. Customer Portal

One of the key features that you can’t neglect to integrate is the customer portal feature. This provides customers with access to track orders, view delivery status, and manage communication with the logistics team.

9. Supplier and Vendor Management

This feature helps businesses identify, evaluate, and manage suppliers. It manages relationships with suppliers and vendors, tracks their performance, and ensures timely procurement of goods and services.

10. Analytics and Reporting

A crucial feature of a logistics management system is that it offers data-driven insights and generates reports on key performance indicators (KPIs) such as delivery times, cost efficiency, and inventory turnover.

11. Tools for Reverse Logistics

It contains tracking and managing returns and handles reverse logistics. This allows businesses to efficiently manage product returns, repairs, and exchanges. The feature helps streamline the operations of product returns and improve customer satisfaction. 

12. Electronic Data Interchange (EDI)

EDI is the process of exchanging business documents between companies electronically. It facilitates seamless data exchange between suppliers, vendors, and customers to streamline communication and better operational efficiency. 

13. Customizable Dashboard

The customizable dashboard provides a personalized dashboard with real-time metrics and visualizations. It allows logistics managers to monitor the most important operations at a glance. Additionally, it leads to countless customization options as per business requirements and market demands. 

14. Multi-channel Integration

Software such as logistics management software requires the smooth integration of shipping enablers and technology. This feature enables the integration of multiple sales and eCommerce channels, such as Amazon, Shopify, etc., to streamline order fulfillment across platforms. 

15. Mobile Access

It is essential to build software that can run smoothly on mobile devices. This feature helps customers, drivers, warehouse workers, managers, stakeholders, or any other people in the organization access anything from mobile on the go. 

You've now gone over the top 15 features that your logistics management software needs to have. Now the question is how to build a logistics software from scratch. To understand that, you must comprehend the idea or process of developing the software. Let’s discuss. 

How to Build a Logistics Management Software: Step-by-Step Guide 

The 4 steps to build the best logistics management software are as follows: 

Step 1: Define The Objectives

Establishing your goals for the software must be your first step in creating an effective logistics management system. The main motive of a logistics company is order fulfillment, and it can be facilitated by combining numerous business operations into a single platform and automating repetitive tasks. 

The majority of logistics firms have demonstrated shared goals when building software. They are as follows: 

• Real-time tracking of the product and logistics
• Route planning and optimization 
• Inventory management to increase efficiency
• Ensure stock availability and prevent overstocking
• Effective communication between suppliers, warehouses, and customers
• Automating the order fulfillment process to improve efficiency
• Improved forecasting and demand planning for timely deliveries
• Data-driven decision-making for performance analysis and optimization
• Enhanced customer satisfaction through faster and more reliable services
• Compliance with industry regulations and standards
• Cost reduction through efficient resource allocation and optimized routes

So these are some common objectives that successful logistics companies follow while defining objectives. 

Step 2: Get the Right Development Team

Selecting a right mobile app development team is crucial for implementing an effective logistics management system. The team should be composed of experienced software developers, logistics professionals, and business analysts willing to undertake the assigned tasks within the industry. 

For example, a firm in a particular industry such as logistics, say FedEx, will need experts in information technology and supply chain who will ensure that the tracking system is constructed and sustained.

The team of right mobile app development team ensures that the software incorporates seamlessly with hardware and databases and scales with the business. They also contribute to solving obstacles from multiple perspectives to ensure that the final product is technology- and business-driven. It is essential to go with the right team since they can drive innovation, streamline processes, and build a well-designed logistics system that meets your business needs. 

Step 3: Build Modules and Their Functionalities

The third step is building modules and their functionalities. This step is critical to developing logistics management software that fulfills your logistics needs. The software must consist of key modules such as inventory management, route optimization, real-time tracking, order fulfillment, etc. The purpose behind designing these modules is to streamline specific business processes. 

Let’s understand this with some examples: 

A real-time tracking module allows for real-time updates on shipments; on the other hand, an inventory management module helps track stock levels and prevent overstocking and shortages. 

Additionally, a route optimization module improves delivery efficiency and reduces costs and delivery times. An order fulfillment module automates processes from receiving orders to dispatch. 

These modules and functionalities help logistics companies enhance operational efficiency and ensure smoother coordination across different business units. Therefore, it is imperative to decide which modules need to be implemented to fulfill your logistics needs and scale your business. 

Step 4: Become a Part of the Wider Environment

Now the final step in building your logistics management system is becoming a part of the wider audience. This means you should integrate your system with other tools and platforms commonly used in the logistics industry. These can include: 

• ERP systems 
• CRM software 
• Third-party APIs
• Payment Gateways 
• Warehouse Management Systems 

A logistics management software development company helps you integrate your software seamlessly with these tools and platforms. This ensures data follows across platforms, streamlines operations, and provides real-time insights. 

Moreover, while incorporating these systems, it is essential to meet industry standards and regulations and align with legal requirements. Integration with external systems helps your software and ultimately your company to improve efficiency, enhance data accuracy, and foster better collaboration across the supply chain. 

Now that you know how to create a well-designed logistics management system, let's talk about the advantages it may provide for your company.

Top 7 Benefits a Logistics Management Software Offers to Businesses 

A well-designed logistics management system offers several benefits; let’s examine the top 7 benefits it provides to your company: 

1. Customer Satisfaction

The best thing about logistics software is that it enables businesses to deliver goods in a way that leaves customers happy. Logistics software makes faster delivery, precise tracking, proactive communication, and other benefits possible, enhancing the customer experience.

2. Better Decision Making

Logistics management software gives data-driven insights that enable informed decisions regarding shipment schedules, supplier relationships, inventory levels, etc. This ultimately leads to growth and a better future for the company. 

3. Improved Efficiency

The software offers automation that streamlines routine tasks, saves time, and reduces human errors. This allows workers to focus on high-value activities and increase the overall productivity of the business. 

4. Increased Visibility

Workers in the logistics business find it difficult to have a comprehensive view of operations and performance metrics. However, logistics software increases visibility by centralizing all logistics data together. 

5. Cost Reduction

Logistics management software reduces transportation and storage costs by optimizing routes, reducing fuel consumption, and minimizing delays. This helps companies increase total profit and grow efficiently. 

6. Compliance Management

One of the biggest benefits a business can receive from such digital solutions is to avoid risk and not break any law. Logistics software solutions ensure adherence to regulations, reduce the risk of fines and penalties, and maintain business continuity. 

7. Better Collaboration

It enables better collaboration that facilitates seamless communication between teams, suppliers, and customers. This improves overall operations coordination and leads to better deliveries. 

These 7 benefits help you scale your business and generate high revenue and sales. Now, it's time to wrap up the article, but how can we end it without letting you know about the cost of building such software? 

However, examine some tips that will help you build the best software before exploring the cost. 

8 Tips to Build the Best Logistics Management System 

To get the best logistics management software for your logistics business, you must follow some tips. Let’s explore them one by one: 

1. Prioritize real-time tracking and visibility features.
2. Integrate with existing supply chain management systems.
3. Implement automated route optimization for efficiency.
4. Ensure scalability to accommodate business growth.
5. Focus on a user-friendly interface and dashboard.
6. Incorporate advanced analytics for data-driven decisions.
7. Ensure robust security and data protection measures.
8. Provide seamless mobile access for on-the-go management.

How Much Does it Cost to Build a Logistics Management Software?

As the article draws to a close, you should know how much money you’ll have to invest to get a logistics digital solution for your business. Well, the answer to this depends on several factors, including: 

• Features and Functionalities 
• Platform & Technology Stack 
• Development Team & Location
• User Experience & Infrastructure 
• Integration of AI & ML 
• Cloud Computing & Internet of Things 

Let’s now explore the average cost ranges of simple, medium, and advanced logistics management software. 

Development Type	Estimated Cost (USD)	Timeline
Simple	$20,000-$40,000	2-4 Months
Medium	$40,000-$80,000	4-6 Months
Advanced	$80,000-$120,000 or more	9+ Months

Development companies also offer a Minimum Viable Product (MVP). It's a basic version of a product that helps companies test their ideas and launch in the market at a low price. These solutions can scale as per business requirements and customer demands.

Leverage Apptunix’s Expertise to Build Logistics Management Software 

Partner with Apptunix, a leading logistics management software development company, to build your logistics digital solution. We bring years of experience in creating software development services and have delivered many successful digital solutions across various industries. 

If you want to optimize your supply chain, improve operational efficiency, and enhance customer experience, our custom digital solutions are the best addition to your business. Collaborating with Apptunix means tapping into a wealth of expertise in shipping and logistics management software development. 

We create scalable and technology-driven systems tailored to meet your unique business requirements. With a proven track record of success, we believe we’ll be the flawless choice for you. 

Let us help you transform your logistics operations and drive growth with innovative digital solutions. Contact Apptunix today to get started!