How to Build a Custom Logistics Management Software?

Build Logistics management software

Do you know that the global digital logistics market size was $18.10 billion in 2021? And during the forecast period 2021-2030, it is expected to reach $77.52 billion by 2030, with a CAGR of 17.54%.

With such a great market size, you can be left behind if you are still thinking of transforming your logistics management. It’s time to upgrade your logistics operation methods and switch to customized modern logistics management software.

We are all aware of the exponential growth in the e-commerce industry. And the rise in the e-commerce industry requires logistics providers to operate efficiently. So, the demand for transparency, affordability, convenience, and speed in delivery has increased like never before.

Logistics Market Size (In $ Trillions)

To cater to this need, creating new business models and solutions is essential to creating logistics management software that can help your warehouse business scale.

What’s Trending? Fleet Technology Revolution: Transforming Ecommerce Logistics in Real-Time.

In this article, you will learn the step-by-step guide to building Logistics Management Software. But before that let’s know what logistics management software is.

What is Logistics Management Software?

Logistics Management Software is a digital solution that helps to streamline supply chain management and logistics operations. It helps in automating various processes, including inventory management, warehousing, transportation, and order processing.

Logistics Management Software provides real-time insights into the warehouse operations. It improves the efficiency and reliability of supply chain operations.

Also, it helps in reducing operational costs and increasing transparency. Logistics Management Software helps in delivering goods efficiently and effectively from the point of origin to the final consumer.

Now you are well aware of what logistics management software is. It’s time to look at our step-by-step guide to developing Logistics Management Software.

You can check these 10 Unique Warehouse Management System Examples to understand about the features that need to be included in your software.

Step By Step Guide to Develop a Logistics Management Software

Here’s our step-by-step approach to developing Logistics Management Software. We will be covering everything from the initial concept to the final launch.

Let’s begin with the steps involved in developing robust logistics management software.

Step 1: Identify Your Logistics Needs

First, you should list the issues the logistics software should address and describe the pain points your company is facing. Every day you face some challenges that can be solved with technology. It would help if you listed all those.

For example, your resources are not utilized efficiently as they involve manual tasks. These manual tasks can be automated with technology.

Or maybe you’d like to investigate some modern systems your competitors use and want to implement something similar at your company.

Some of the most common needs logistics providers have are below:

  • Route planning and optimization
  •  Real-time tracking of logistics
  •  Comprehensive reporting and analytics
  •  Inventory management
  •  Invoicing and contract maintenance
  •  Vendor management
  •  Portal for logistics managers, supplier supplier-dedicated portal, an app for delivery executives, etc.

You might have a different plan, but these are basic needs when building logistics management software. Additionally, you might need:

  • CRM
  •  Warehouse management
  •  Supply chain management

It is simpler to decide on the scope of the solution, the type of deployment, the number of features needed, and the estimated cost once you have a clear idea of what the software is supposed to accomplish. Till we move to next step you may like to know about the key features of Warehouse Optimization Software.

Step 2: Choose a Development Methodology

If you want your logistics management software to work like you want then you need to choose the development methodology. You will get updated on how your project is executed with your choice. Also, how your team works together, and how adaptable the development process is to changes.

There are two standard methodologies, i.e. Agile and Waterfall. 

Agile allows for ongoing testing and more flexibility throughout the development process. It is ideal for projects where requirements may change or evolve.

On the other hand, Waterfall is a more linear approach where each phase must be completed before moving on to the next. It is better suited for projects which require less or no change.

Now you understand methodologies, you may choose what you prefer.

Let’s move to the next step.

Step 3: Design a Scalable Architecture

If you must create the logistics management software’s architecture, you must formulate its structure, components and operations.

You must select the hardware, software and network pieces required for efficient system functioning.

This architecture design phase is critical because it lays the foundation for how your software will operate and scale. It would help to consider system scalability, reliability, and security from the outset.

The architecture should support modular components that can be updated as your logistics needs upgrade. It would help if you chose the right technologies and frameworks. The right technology can handle the volume of data and transactions in the software.

  • Microservices vs Monolithic: Decide whether a microservices architecture, which splits the application into more minor, interconnected services, or a monolithic architecture, which builds the application as a single unit, is more suitable for your project.
  •  Data Modeling: Design the data model to store and retrieve logistics information efficiently. This involves defining the relationships between data entities and choosing the correct database schemas.
  •  Security Measures: Plan for security measures from the start. This includes data encryption, secure authentication mechanisms, and protection against common vulnerabilities.
  •  User Interface and User Experience (UI/UX): The design should prioritize ease of use and catchy navigation to ensure users can manage logistics operations through the software.

Pro tip: Integrating cloud services will give you flexibility and scalability. Ensure the design supports integration with your organisation’s other systems and software tools.

Step 4: Select Technologies and Tools

Your choice of the tech stack is essential. It impacts the software’s performance, scalability, and future maintainability. I have curated the list below:

  • Programming Languages: You must choose scalable languages with solid community support. You can choose Python for fast development. You can select Java when building large-scale applications and JavaScript/TypeScript for developing responsive web applications.
  •  Database Management Systems (DBMS): You must choose databases that handle the volume, velocity, and variety of your logistics data. Relational databases like PostgreSQL or MySQL are great for structured data. NoSQL databases like MongoDB are better for unstructured data.
  •  Cloud Platforms: Need to select cloud services for hosting, storage, and computation. It will offer scalability and flexibility. AWS, Azure, and Google Cloud Platform are the best platforms. They provide services tailored to your needs.
  •  Development Frameworks and Libraries: As discussed above, the right frameworks can speed up development. React, or Angular for the front end and Node.js or Django for the backend are famous in web development. For mobile app development, you can consider Flutter or React Native.
  •  APIs and Integration Tools: You must integrate GPS tracking devices, third-party logistics services, or customer relationship management (CRM) systems. So, you must select APIs and integration tools that build these connections seamlessly.
  •  DevOps Tools: Tools for continuous integration and continuous delivery (CI/CD), like Jenkins or GitLab CI, can automate the process of testing and deploying your software.

Step 5: Develop a prototype (MVP)

Now you are done with selecting tools and tech stack. It’s time to start developing a Minimum Viable Product (MVP) that includes the core features necessary to meet the most critical logistics needs identified in Step 1. This approach allows you to:

  • Quickly Launch: Get your software into the hands of users faster for real-world testing and feedback.
  •  Iterate and Improve: Use the feedback to decide which additional features to develop and what improvements are needed.
  •  Manage Costs: Focus your budget on the most essential features, avoiding overspending on less critical functionality.

Ensure the development process follows best practices in coding, uses version control systems like Git, and incorporates regular testing to maintain high quality.

Step 6: Conduct Thorough Testing

Before the full-scale launch, it’s essential to test the software rigorously. It helps to identify and fix any bugs or issues. Testing should cover:

  • Functional Testing: It ensures the software operates according to your requirements.
  •  Performance Testing: It checks that the software performs well under expected loads.
  •  Security Testing: This testing identifies vulnerabilities and ensures effective data protection measures.
  •  Usability Testing: In this type of testing, developers gather feedback from potential users on the software’s ease of use and overall experience.

Use the insights gained from testing to refine and improve the logistics management software.

Step 7: Deploy and Provide Support

Once the software is thoroughly tested and refined, proceed with deployment. It’s time to take the full-fledged, finally developed Logistics Management software in hand.

Please choose the right deployment strategy, whether it’s on-premises or cloud-based. It would help if you considered the scalability, cost, and maintenance implications. After deployment, you can officially launch the software to your users.

After the launch, continuously monitor the software’s performance, user feedback, and emerging needs in the logistics industry. Provide regular updates to add new features, fix bugs, and enhance security.

Reliable customer support is essential to address user concerns and ensure a positive experience with your logistics management software.

Also read: Benefits of Implementing ERP Systems in the Logistics Industry

Types of Logistics Software

There are several types of software that can help you in managing your logistics operations efficiently.

1. Transportation Management System (TMS)

One of the most important types is the Transportation Management System (TMS). It assists in planning, executing, and improving the shipping of physical goods in and out of the organization. The software also helps with documentation, ensuring that all necessary documents are available.

2. Enterprise Resource Planning (ERP) Software

Enterprise Resource Planning (ERP) is another type of logistics software. It takes care of routine tasks such as accounting, compliance, risk management, and purchasing. The system helps to calculate and estimate, which is often half the success if done properly.

3. Warehouse Management System (WMS) System

Another important type is the Warehouse Management System (WMS). This system is responsible for inventory and distribution management. By using this software, it becomes easier to track product availability, identify gaps in warehouses, and determine when the next delivery or shipment is due.

4. Freight Software

Freight Software is needed to make the movement of goods 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.

5. Logistics Tracking Software

Logistics Tracking Software is another useful type of software. It automates processes such as task allocation, day-to-day plans on shipment and delivery, route choice and optimization, and more.

6. Logistics Staff Management Systems

Logistics Staff Management Systems can help with optimizing employee responsibilities, task allocation, monitoring, accessing results, shifting working hours, and more.

Also read: The Role of IoT in Manufacturing Industry.

How Does Logistics Management Software Work?

Logistics Management Software allows for both forward and backward processing of goods and services.

Logistics companies use this logistics management software to automate business activities and manage them efficiently. Effectively managing every process in both directions is need of the hour. The software helps in order booking, delivery, sorting, and selection. This makes it simple and quick for buyers to receive goods in good condition.

On the other hand, goods that customers reject because of damage or other issues can be simply returned and reprocessed via the Logistics Management Software.

Operations using digital logistics software can be carried out in two ways: through third-party logistics with the help of the software and through self-management.

You may contact Third-party Logistics (3PL) firms to outsource logistical activities, depending on capacity and control. Logistics from third parties helps in operational management.

Trending suggestion: How to Create An IoT App – Time, Cost, and Resources You Need.

Final Words

Now we are done with all the steps involved in developing a custom logistics software. We suggest you to contact with best Logistics Automation Companies for further details. I hope you will get everything you want in your logistics management software.

Keep yourself updated with the latest trends in logistics and warehouse industry so that you can stay ahead of your competitors. Follow Just Create App on all social media portals, so that all the latest updates reach your feeds directly.

Alex Rode

Alex Rode

I am founder of Just Create App. I have extensive experience in writing about apps, softwares, IT companies. Done Master of Science in Computer Science from Yale University, I am a passionate tech enthusiast and dedicated writer. I delve into a diverse range of topics, from AI and software to app development, and keep a keen eye on tech firms and emerging trends. My expertise enables me to break down complex topics and present them in an engaging, accessible manner, making me a trusted source for insightful analysis in the realm of technology.

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