Automated capacity planning, route optimization, real-time fleet management — the software enabling these capabilities is driving the revenue of logistics leaders. In fact, McKinsey reports that over 85% of logistics companies say digital solutions added value to their organizations.
Of course, large logistics operators have a lot of disposable resources to invest in powerful digital solutions, whether they involve custom logistics software development or off-the-shelf tools. But if you’ve just started a logistics business, your resources are way too limited to invest them in a dozen standalone software tools.
Here are the six solutions you definitely need to streamline your logistics operations from the very start — and the five solutions that can wait.
6 Digital Solutions You Need to Launch a Logistics Business
To manage your logistics processes at the very start of your business, you’ll need these six logistics management systems.
Order and Shipment Tracking System
This logistics software solution is the heart of your operations: it enables you to track all orders, manage and monitor their fulfillment, and keep your customers informed. So, even a lightweight or custom web app MVP for an order and shipment tracking system is a must.
Core features:
- Real-time order tracking and status updates
- Inventory management
- Order fulfillment management
- Returns and issue management
- Alerts and notifications
- Analytics and reporting
Driver or Fleet Management Software
This logistics solution will enable you to keep your hand on the pulse in managing your fleet and drivers. Its basic version should at least allow you to assign orders to drivers and track their routes on a map. Without it, you might be left in the dark about where your vehicles are or which drivers are on sick leave.
Core features:
- Fleet vehicle tracking
- Task management
- Vehicle health and maintenance reminders
- Alerts and notifications
- Driver performance and management
Mobile-Accessible Operational Dashboards
These dashboards provide teams with basic real-time visibility into supply chain operations. They can be included in the solutions described above or implemented as a standalone software solution. UI responsiveness is key: with it, users can check operational data on the go with a smartphone or tablet.
Core features:
- Real-time data collection
- Customizable data visualizations
- Responsive design
- Standard and custom alerts and notifications
Communication and Alerting Tools
You’ll need communication tools both for streamlining collaboration within your company and communicating with your customers. When it comes to the latter, automation is key: you don’t want to waste employees’ time by having them write every delivery alert by hand. Email and text messaging are typically enough to facilitate collaboration among logistics staff and drivers.
Core features:
- Push notifications on mobile devices and tablets
- SMS alerts for drivers and customers
- Email notifications and communication
Billing and Invoicing Integrations
A billing and invoicing module is typically part of the enterprise resource planning (ERP) software solution, but you probably won’t need a full-fledged ERP at the very beginning. That said, a dedicated billing and invoicing tool will save you tons of time by automating most facets of these two processes.
Core features:
- Configurable and flexible pricing options
- Automated data processing and invoice generation
- Volume and unit-based transaction support
- Automated tax calculation
- Multi-country and multi-currency support (if needed)
Custom API Integrations (Optional)
These integrations allow separate supply chain systems to synchronize data and automate processes. These systems can include your internal systems or software used by your partners: 3PL operators, distributors, wholesalers, manufacturers, or retailers.
You might need logistics software development services to integrate your custom software solution with pre-built APIs or develop a new API to connect two systems.
What Can Wait: Logistics Software You Don’t Need from Day One
These five supply chain solutions can produce significant savings and efficiency gains only for businesses with large-scale operations.
AI-Powered Route Optimization
While it can speed up transportation and reduce shipping costs, it won’t deliver a good ROI unless you have a large fleet and order volume. When you’re just getting started, available navigators like Google Maps, along with careful route planning, are enough.
Predictive Analytics
This AI technology enables demand forecasting, but it can only be effective if you have a lot of historical data to train the model. So, even if you think you’d benefit from it, you’ll need to amass that data first.
Warehouse Automation Software
A warehouse management system with automation features will come in handy only if you manage vast amounts of inventory across multiple warehouses. At the start, with a single warehouse or storage room, you’d be better off using a lightweight inventory management software or spreadsheets.
Full-Fledged ERP Software
Both off-the-shelf and custom ERP systems are notoriously expensive and complex in implementation, although they can deliver savings by centralizing data and automating certain processes. However, you won’t benefit from all those capabilities unless your business consists of multiple large departments.
Advanced Customer Portals with Live Tracking
Your first customers probably wouldn’t need features like real-time ETAs or self-service order management. Low shipment volume, in turn, won’t justify the investment into automations that advanced customer portals can provide.
How Lember Supports New and Growing Logistics Companies
With 10+ years of experience under its belt, Lember is a transportation and logistics software development team that comes to the aid of both newcomers and established players in logistics. If you’re just getting started in the logistics industry, our logistics software development services can help you:
Map out and digitize core workflows
If you need to bring some order into your processes, we can identify the highest-ROI digitization opportunities and help you leverage them.
Build lightweight systems
Our software developers can deliver simple tracking dashboards, driver apps, or dispatch tools, all while keeping the development process fast and cost-efficient.
Replace manual processes
With Lember, automation doesn’t have to cost an arm and a leg. We’ll identify the most strenuous manual processes that can be easily automated with off-the-shelf or custom software.
Set up API integrations
If your employees spend too much time re-entering data, we can help you save their valuable time with API integrations for data syncing.
Start lean, but be ready to grow
If you have ambitious plans for your logistics business, we can build a lean MVP that will be well-prepared to scale and evolve together with your company.
Getting Started with the Right Logistics Tech Strategy
In the early stages of your venture into the logistics industry, you need to select your investments carefully — and that goes for the software you use, as well. So, prioritize investment in order and shipment tracking systems and fleet management software. Full-fledged ERPs and advanced warehouse automation systems can wait.
Need a hand with selecting the right tech strategy or making it a reality with custom logistics software development? Contact us to discuss how our custom software development expertise across 100+ projects can help you maximize operational efficiency without exorbitant overhead.