The market of logistics software is growing, with revenue of $17.58 billion in 2022 and estimates of up to $23.21 billion by 2027. Steady and stable, no matter the possible recession. So, if you’re thinking of developing such a program for your business or to sell to other companies – you’re on the right track.\n\n\nBut before the actual logistics software development process, there are a lot of discussions and decisions. What kinds of programs are there? Which one will bring the most use to your business? When is it time to create transportation software in your case? What business benefits will it bring?\n\n\nAnd finally, how to build logistics software to save time and money and avoid losing quality?\n\n\nAll this and more – in the article below!\n\n\n\n\n\nKey takeaways:\n\n\n\nLogistics and transportation software development involves the creation of WMS and TMS (management systems for warehouses and transportation), logistics tracking, freight software, ERP, and more.\n\n\nA company needs a TMS and\/or a WMS when it experiences issues with warehouse monitoring and could use efficiency and cost optimization.\n\n\nThe benefits of using such software include fewer human errors, cost optimization, process automation, and supply chain transparency.\n\n\nThe technologies ProCoders used to build logistics applications include React.js for frontend, PHP and Node.js for back end, Swift and Kotlin for mobile development, and .NET for cloud-based software.\n\n\nTo create such an application, you have to plan your budget and timing, hire the right developers, build a prototype and then an MVP, analyze it, develop the final version of the app, test it, and then launch.\n\n\nThe cost of logistics software can range, but if you need a full app built by professionals, tested and prepared for launch, $60-80K is the realistic amount. We can discuss the cost-saving options through the ProCoders Discovery Phase.\n\n\n\nWhat Is a Transportation and Logistics Management System?\n\n\nA TMS is a group of logistics software that helps companies plan, monitor, and optimize the physical movement of their goods, including documentation control. Such a service is usually a part of a larger supply chain management system (SCM).\n\n\nKey Types of Logistics Software\n\n\nTo be able to plan your own future software, it’s nice to know the most in-demand types.\n\n\nTMS (transportation management system)\n\n\nThe system is responsible for helping you plan, execute, and improve the shipping of physical goods in and out. The software also helps with documentation, ensuring all the needed docs are available.\n\n\nWMS (warehouse management system)\n\n\nThis system is responsible for your inventory and distribution. By using this one, you make it easier to see whether a product is available or not, where there are gaps in warehouses, and when the next delivery or shipment is due.\n\n\nLogistics ERP\n\n\nWhat is ERP supply chain management? Enterprise Resource Planning or ERP takes care of routine tasks such as accounting, compliance, risk management, purchase, etc. The system helps you calculate and estimate, which is often half the success if done properly.\n\n\nLogistics tracking software\n\n\nLogistics tracking is useful for task allocation, day-to-day plans on shipment and delivery, route choice and optimization, etc. Its brilliance is in the ability to automate all those processes for you.\n\n\nFreight software\n\n\nFreight management is needed to make goods movement smooth as it goes from the shipper to the carrier and, finally, to the recipient. Such software should assist you in optimizing this process so that it’s effort- and cost-effective.\n\n\nLogistics staff management systems\n\n\nStaff management systems will aid human resources and managers in optimizing employee responsibilities, allocating tasks, monitoring, accessing results, shifting working hours, and more.\n\n\nAll of these sound very useful. And it’s good news that you can combine these in one piece if needed. But when does a company need to create its own TMS or WMS?\n\n\nWhen Does Your Company Need to Create TMS or WMS Software?\n\n\nWhenever you see that your business could use:\n\n\n\nMore productivity due to process automation\n\n\nBetter cost-efficiency\n\n\nHuman error rate reduction\n\n\nImproved data collection\n\n\nBetter customer experience\n\n\nA higher customer service level\n\n\nBetter management of your capacities\n\n\nLess paperwork\n\n\n\nWhen you’re scaling up or feedback and analytics state that the company may need an upgrade, a TMS and a WMS can become that upgrade. We understand it’s a hefty investment, but the business benefits of using logistic management software are worth it.\n\n\nBusiness Benefits of Logistic Management Software Development\n\n\n\n\n\nBefore building transportation software, many entrepreneurs have doubts. After all, they will have to invest money into creating a program that may not be used for monetization. Isn’t this just wasting finances?\n\n\nIn fact, there are many business benefits logistic management software can bring you.\n\n\nProcess automation\n\n\nIn Industry 4.0, it’s all about automation. If you don’t use technological advances to take the load off your employees, you’re going to stay behind. This is not only because they are going to get tired and quit but because the speed of machinery is faster and the processing capabilities are better.\n\n\nPlus, you can engage employees in more important tasks, increasing productivity levels. Meanwhile, the program will make it easier to travel through the supply chain, track goods in real time, optimize routes, and much more in a couple of clicks.\n\n\nIoT, ML, AI in logistics systems\n\n\nThe Internet of Things, machine learning, big data, and artificial intelligence got their way into all industries. We consult with AI now and have ML find out and remember our preferences. Using these advances for logistics will save you effort, time, and money while guiding your company into the new age.\n\n\nVisibility of the supply chain\n\n\nTracking software will help both the company and clients see that all the processes are transparent and all the goals are met. This plays a huge role in trust-building and can actually help business owners clean up logistics.\n\n\nCost optimization\n\n\nNo human factor, top-notch resource optimization, proper route choice, fewer delays, and minimal paperwork will all contribute to the cost efficiency of your company, as well as increases in revenue.\n\n\nReduction of the human errors\n\n\nNo matter how good an employee is, they may make mistakes. With technology, this isn’t always the case. Reduce the human factor with the use of wisely built software for logistics.\n\n\nImprove customer experience\n\n\nClicking a couple of buttons is much easier than calling a bunch of people. Besides, when you offer a tool for, say, tracking one’s order, it shows that you’re transparent and honest with your customers, which improves their experience.\n\n\nIt seems such software is necessary for all logistics companies. Given developers use the right technology, the program will cover all your needs.\n\n\nWhat Technologies to Use to Develop Logistics Software?\n\n\nHere are the technologies ProCoders specialists use in transportation projects:\n\n\n\nFrontend (the client’s side: user interface, request processing, etc.) – React.js, Angular.js, Vue.js, jQuery.\n\n\nBackend (the server side customers don’t see) – PHP, Node.js, Python, Java.\n\n\nMobile (a mobile app for more convenience) – React Native, Swift, Kotlin.\n\n\nCloud (for cloud-based software, which is often faster) – .NET and Node.js.\n\n\n\nThe right tech used at the right time equals a successful program for your logistics needs. Let’s see how exactly you can make an idea turn into life.\n\n\nSteps to Build Logistics and Transportation Software\n\n\nKnowing the tech necessary to develop transportation software doesn’t mean you know how to implement supply chain management system successfully. We’ve prepared a step-by-step to help you evaluate the scope of work.\n\n\nStep 1. Analyze Your Requirements\n\n\nBusiness analysis helps you understand what kind of software you need. Hire a team of analysts to overview your company, its scale, the main pain points, etc., and come up with a report showing gaps in logistics tracking, management, and communication.\n\n\nAll you have to do is to create software for transportation that fills in those gaps.\n\n\nOf course, instead of hiring an analytics team, you can apply to ProCoders’ Discovery Phase. We already have people whose main specialization is pinpointing potential issues and finding solutions for them.\n\n\n\nStep 2. Plan the budget, time, and other numbers\n\n\nAlong with business analysis, it’s important to have a clear plan of budget, time, the number of people you have, the number you need, etc. That requires extensive market research and an understanding of the internal development processes.\n\n\nProCoders can help with this as well. Within the Discovery Phase we have mentioned, our experts provide you with the approximate time, investment scope, and the number of developers and testers you may need.\n\n\nBased on this information, we can discuss:\n\n\n\nNarrowing the timeframe\n\n\nCutting on costs\n\n\nFilling your team\n\n\n\nStep 3. Hire the right people\n\n\nThis is an optional step as you may already have a full team working on the project. However, if not, you won’t create your logistics software for years (duh). We mean that finding people who not only have the right skills but can work as a team can take over a year.\n\n\nThat’s hours of resume reading, interview conducting, and technical testing.\n\n\nBut you should know that a team or additional staff for an existing crew can come to the rescue in just a few weeks. ProCoders’ staff augmentation strategies can help here. We already have developers and testers on board, so you can forget about all those CVs and calls.\n\n\nEven if all our specialists are engaged in other projects, we can find talent for you using our verified channels. We take the search, interviews, and practical tests on our recruiters and tech team leads.\n\n\n \n\n\n\nStep 4. Develop a prototype and an MVP\n\n\nAfter you hire pros that know how to craft logistics software, they will have to work on a prototype and later on an MVP – a minimum viable product. The latter is a very useful approach that makes it easier for you to see if the application is turning out the way you wanted.\n\n\nBesides, you can launch it as a beta version and gather feedback right away, making the final product better. And if you need investment for the program, an MVP will help you get it as you can show it to potential sponsors.\n\n\nStep 5. Approve and execute final development\n\n\nMake changes, add and remove functions, alter the product according to feedback and execute the main development. Frontend, back end, APIs, etc. have to be handled by professionals.\n\n\nStep 6. Test the application and debug it\n\n\nWithout testing, you can launch a program. There may be bugs developers can’t predict as they compile the product together. This is where pro testers should come in and use various methodologies, as well as both manual and automatic testing.\n\n\nAfter it’s done and you’ve made all the changes to the software, it’s time for launch.\n\n\nStep 7. Launch and gather feedback\n\n\nThe initial feedback is crucial. Gather and analyze every message, and encourage honest reviews. If everything is alright, congratulations! But you can’t guess the right functionality for everyone, so perceive feedback as ideas for a potential next version of the program.\n\n\nWhen you know how to build logistics software, upgrading it won’t be a problem.\n\n\nNow you know how to build logistics software that matches your business needs and requirements. But how much will it cost? And are there ways to save money without jeopardizing the quality of the whole project? Let’s find out!\n\n\nCost of Custom Logistics Software Development\n\n\nWe’d say $60-100K, and let us justify this amount. To develop an app from scratch, you may need about 4 developers. One middle developer will cost you around $6K a month, and the full engineering may take around 4+ months. Plus, you need a designer, a project manager, a quality assurance specialist, and other staff.\n\n\nSounds very investment-intensive. But there’s a way to save finances without losing the quality of the transportation software you want to create. Have you ever heard of staff augmentation?\n\n\nIt’s an approach that allows you to hire additional staff without having to deal with the actual hiring process. You find a company that already has developers hired or can find some for you in verified talent pools. They find, filter, interview, and test candidates according to your requirements. Your job here is to conduct a final interview to see if the person or people will be a good fit for the project.\n\n\nIn such a case, you save on paid vacations, insurance, office space, and precious time. Looking for the right candidate may take about a year for you, and there’s no guarantee the finalists will be worth it. Why not trust this to people who specialize in hiring skilled technical experts?\n\n\nIf you’re interested in finding a partner that will add skillful staff to your team to save money and maintain the high quality of your product, you’re in good company.\n\n\nHow ProCoders Can Contribute to Your Business with Logistics Software Development?\n\n\n\n\n\nProCoders can contribute in two ways:\n\n\nDiscovery Phase Services and Business Analytics \n\n\nBy applying to the Phase, you choose a deep analysis of your business needs and the market. It’s done to come up with a perfect plan for creating logistics software that will suit your unique requirements. Our analysts provide you with time and cost numbers, as well as a clear step-by-step on what to do next.\n\n\nStaff Augmentation \n\n\nProCoders can provide a full dedicated team, a hybrid team, or some additional staff for an existing team, depending on what you need at the moment. We can find one person for you so that the project gets a fresh look, or we can hire a full-on band of 25 people to develop logistics software from scratch.\n\n\nYou can use either way or combine them for the best results. We have extensive experience with building logistics software and are ready to use our knowledge to empower your company.\n\n\nMaybe we already have the people you need on the team and they are free and ready to collaborate! And if not, ProCoders will find you an expert who knows how to build transportation software of top-notch quality at an adequate rate.\n\n\n\nConclusion\n\n\nLogistics and transportation software will help your eCommerce or another company that needs inventory and shipment\/delivery tracking jump to the next level. The benefits are plenty, including process automation, cost-efficiency, faster shipment and delivery, and more.\n\n\nDevelopment is no easy task, but if you choose the right provider, plan your budget and time properly, and pay attention to feedback, the investment will pay off.\n\n\nProCoders is always ready to consult you on the time and money questions, as well as to discuss the functionality and modules needed for the perfect software for your company.