Logistic Tracking Software Development: Full Guide

 Alexander Ivanov

Alexander Ivanov

Head of Logistics and Supply Chain Technologies

Custom Software
Jul 15, 2022
7 minutes to read

Logistics has undergone significant changes after the pandemic, border closures, and transportation restrictions. The changing times dictate new rules and solutions. To overcome the challenges and establish adaptable and effective flows, the industry should consider implementing modern logistic tracking software. In this blog post, we will analyze the approaches to creating such software and its benefits for organizations.

What is logistic tracking software?

Transportation companies resort to logistic tracking software development to automate complex tasks and optimize an operating cycle. Such digital solutions are used for delivery planning, task allocation, optimization of routes, tracking resources, and more. Tracking software ultimately reduces transport expenses and improves the efficiency of customer service.

Software for logistics can be introduced in separate domains, such as order management, warehousing, or inventory management. Such software can be tailored for both small logistics companies and the giants of transportation services. It can connect manufacturers and customers and build a flexible supply chain even in rough times that are full of limitations and restrictions on transport operations.

By 2030, the logistic software market is projected to exceed $17.7 billion, growing at a compound annual growth rate of about 8%. Such growth is illustrative of the increasing popularity of transportation management software contributing to substantial improvement in logistic companies’ operations.

Business benefits of logistic tracking software

Implementation of logistic software leads to the optimization of the whole business cycle in these ways:

  • Minimized human error. Automation eliminates the possibility of inputting the wrong information or parameters. It optimizes inventory planning and can control shipping situations in real-time under all possible circumstances.
  • Workflow automation. With digital tools, a logistic company streamlines document management, processes inquiries, and tracks payments to eliminate time-consuming manual tasks.
  • Transparent supply chain. Tracking software allows tracing internal and external operations so that a company won’t miss any of its goals and will get an opportunity to build clear relations with the other participants in the chain.
  • Resource optimization. By embracing a solution for vehicle tracking, a company will help its managers to analyze the workload of the drivers and the causes of potential delays.
  • Reduced costs. By optimizing the use of resources and routes, excluding human errors, and simplifying paperwork, companies will reduce their expenses.

Custom vs off-the-shelf logistic tracking software

When it comes to choosing suitable software, companies consider either implementing a ready-made solution or developing a tailored one from scratch. Each approach has its advantages and limitations so let’s consider them.

Custom logistics software development involves creating solutions according to the specific needs of a customer. For example, a company may have a specific set of parameters for the search for suppliers or monitoring the activities of their drivers.

The advantages of custom solutions

  • Focus on specific needs — custom software is created according to your purposes and matches your business processes in the best way;
  • Scalability — a company has access to the source code of their solution so that the software can be upgraded if you have changing demands;
  • Cost-effectiveness — when you invest in a custom solution, you pay only for the features you need, which is more flexible than buying a subscription for ready-made software.

Custom software development may have its limitations as well:

  • Time for development — the creation of custom solutions takes more time than purchasing ready-made software, though it is justified by the results when all the needed technical requirements are followed;
  • Higher costs — boutique solutions are created according to individual demands, which can not cost less than ready-made software.

Pros of implementing off-the-shelf software

  • Relatively low prices — ready-made solutions usually have various subscription plans according to the size of a business and the scope of its tasks. Sometimes providers offer free trials;
  • Short-term implementation — it doesn’t take much time to start using off-the-shelf logistics software after purchasing.

At the same time, the users of such solutions highlight the following cons:

  • Limited functionality — off-the-shelf solutions usually provide a standard set of functions, which may be not enough for meeting particular business needs;
  • Security vulnerability — providers can not always guarantee the highest security level as their products are designed for average user needs;
  • Limited technical support — software vendors may have limited technical support services for customers and it may take time to fix your issue;
  • Delayed scaling — it may be complicated to add new features promptly to off-the-shelf solutions. You have to wait for updates.

Step by step logistic tracking software development

When a company is considering building logistic software from scratch, it should be aware of the key stages of the process.

Select a provider

Finding the right provider of software services is the cornerstone of the successful implementation of your requirements. Pay attention to the experience and specialization of your potential technical partner. They should be familiar with the logistic field.

Start a project Discovery phase

Take the time to discuss your needs and expectations with the selected development team. They will help you de