Types of Logistics Software

Depending on their area of focus, logistics management solutions can be categorized into the following types.

• Transportation management – Products focused on transportation management help automate route planning, dispatch scheduling, and carrier selection. This type of software also allows you to identify load consolidation opportunities, so you can bundle multiple small cargoes and ship them together for cost savings. Some products even help you estimate shipping costs based on the mode of transport, shipping distance, and weight of cargo, such as raw materials.
• Warehouse management – This type of logistics software helps manage cargoes as they move through the warehouse. Storehouse managers often use the software to plan and execute the receiving, storing, picking, and packing of goods in the warehouse. Products focused on warehouse management often use barcode or RFID scanning technology to track items and store inventory data. Some products also help managers to keep track of the performance of the warehouse workers.
• Fleet management – Products focused on fleet management often come with a GPS tracking feature to help track the shipment vehicles in real-time. You can also use these products for load optimization, route planning and optimization, fleet scheduling, and fleet maintenance.
• Freight forwarding – These products allow users to get price quotes from multiple carriers and help select the best carrier for a particular shipment based on the cost, route, and specialty of a carrier. Most products also assist in shipment tracking and route planning. More advanced products offer import/export support. For instance, the software may help you manage the necessary documentation for international shipping or help comply with trade regulations in a foreign country.
• Route planning and scheduling – While most transportation management solutions offer this functionality, you’ll also find products focused exclusively on route optimization and scheduling. This type of software helps plan routes based on traffic data, vehicle capacity, priority stops, delivery types, and fuel price. Additionally, it allows you to send routes directly to the driver’s mobile phone. The system also helps assign the right order to the right driver based on their location, availability, and specific skill sets.
• GPS fleet tracking – With GPS tracking software, you can track your vehicles’ current location in real-time. Most products come with a geofencing feature that triggers an alert when your vehicle enters or leaves an area. You can also track vehicle speed and journey progress through GPS technology.

How to Choose Logistics Software

The logistics management needs of transportation companies vary depending on the size of their business and the nature of their delivery operations. Third-party logistics (3PL) providers, for instance, take care of the entire logistics operations for their clients. So they often look for a cloud-based, integrated suite of transportation and warehouse management applications, along with inventory control, accounting, and CRM functionality.

Businesses focused on one particular area of the supply chain often look for a best-of-breed solution. For instance, If you run a small courier service company that operates locally, you may simply need GPS fleet tracking software or route planning software. On the other hand, a shipping company may opt for a comprehensive transportation management software solution.

Products designed exclusively for specific buyer types are also available. For instance, freight forwarding software is designed to serve freight brokers and freight forwarders. Buyers can narrow down their search further based on their exact requirements. For instance, unlike freight brokers, freight forwarders often offer warehousing facilities. As such, they typically need a product that not only helps in bidding and contract management but also offers inventory control and warehousing functionality.

If you are a large enterprise looking for logistics software for your in-house transportation wing, consider choosing an ERP-focused solution. You need a product that integrates with the existing applications in your organization.

Fleet operators of any size often use fleet management software for fuel management, mapping routes, driver management, maintenance scheduling and tracking, load optimization and dispatch, and scheduling.

Some third-party logistics companies look for products focused on warehousing so that they can automate most of their warehousing tasks, such as picking, packing, inventory tracking, bin slotting, and cross-docking. However, not all 3PL companies need a dedicated warehouse management solution. For some companies, a simple, user-friendly order fulfillment solution or an inventory tracking solution may suffice.

More advanced logistics management software offers business intelligence. For instance, some products auto-suggest ways to save money on fleet operations based on the company’s historical data, while others can conduct predictive analysis to measure profitability.

Other important factors to consider when choosing logistics software include ease of use, scalability, customer support, overall performance, integration, and multi-user capability.

Benefits of Logistics Software

• Saves money – Logistics software helps lower shipping costs in many ways. For instance, shipment consolidation helps bundle and ship multiple shipments together, while route optimization helps determine the shortest and most fuel-efficient route.
• Improves customer service – Logistics software provides real-time visibility into the goods being transported through a user-friendly interface. Your customers can also check the price and delivery status and get notifications for any possible delays. This helps improve customer relationships and satisfaction.
• Helps make informed decisions – Logistics software helps shippers decide the best carrier or shipping mode for each delivery. Some products also help make better scheduling decisions and storage location decisions.
• Mitigates shipment risks – Using the right logistics management software, managers can analyze the behavior patterns of drivers and identify any potential risks.
• Helps analyze the performance of operations – Advanced logistics software generates reports on performance and profitability, which helps you identify opportunities for improvement.

Overall, logistics software helps businesses within the transportation industry to save money and improve operational efficiency.

Common Features of Logistics Software