Logistics processes are involved everywhere - be it a car manufacturing plant or a service for the delivery of medical equipment. Another thing that unites businesses of different domains is the need to deliver products as quickly and conveniently as possible for clients and stakeholders.
Quite an ambitious goal considering that business logistics spending in the US is $2.3 trillion, which means 8.7% of the national GDP.
The solution? It lies in the tools that manage the logistics flow within the organization. As your business grows, so too does the need for a more specialized toolset.
There are various technological solutions available on the market designed to optimize supply chain operations. For example, inventory or warehouse management systems improve operations related to the coordination of goods on-site. Some companies use more specific applications to optimize packaging, track shipments, manage fuel, etc.
But what are the benefits of investing in logistic app development, and what tech nuances you should know before initiating the project? This guide will answer your questions.
Why invest in logistics app development?
As per a WWPO report, 65% of companies reported that their supply chain management losses during the pandemic exceeded their initial projections. The subsequent economic crisis exposed the weaknesses of traditional supply chain processes in the logistics market.
For example, lack of upstream and downstream visibility, coupled with outdated demand management processes, weakened the supply chain during the first wave of lockdowns. Additionally, the reliance on manual efforts in logistics, which couldn't adapt to demand variability and unexpected outages, further disrupted logistics operations.
The above-mentioned logistics challenges make businesses turn to tech solutions available in the industry - custom logistics apps. At its core, a logistics application is software used to optimize complex supply chain processes into an integrated platform with real-time tracking and management capabilities. Namely, this can be fleet management apps, warehouse management software, route optimization apps, and so on.
It usually works by integrating various components of the logistics chain, turning manual tasks into efficient automated operations. Let’s now understand how such apps can improve businesses’ operational efficiency.
Benefits of logistic app development services
Enterprises integrating modern logistics applications into their operations benefit in the following ways:
- Reduced delivery time and cost
With custom logistics apps, transportation companies can monitor routes in real time and change them in advance to avoid losses. For example, during bad weather conditions, you can reroute to ensure an on-time delivery process with reduced fuel costs.
- Better use of warehouse space
The warehouse management application helps to better organize and control stocks. It automates product receipt, location, and shipping. Thus, you can reduce errors and increase order processing speed.
- Integration of alerts about shipping status
That’s easy: a real time tracking app will help you keep your clients and staff informed about deliveries. Minimized disruptions make supply chain optimization possible for your organization.
- Improved customer satisfaction
Companies choose logistics services to simplify the transportation and delivery of products. With an app that has an accessible interface, businesses can search, browse, and book the services they need without any hassle.
Logistics mobile app development: real-world use cases
Here are some popular companies that have partnered with logistics app development agencies and got custom software:
- Amazon
The company developed its own logistic software for its delivery network, Amazon Flex. It allows independent contractors to manage delivery routes, track packages, and communicate with Amazon’s logistics team.
- Maersk
Maersk made a custom app that provides comprehensive cargo tracking, predictive analytics for disruptions, and automated compliance features. A logistics management app helped to cut delivery times.
- C.H. Robinson
It's a global logistics provider that built a logistics application to improve its supply chain visibility and management. The app has real time tracking, shipment management, and analytics to increase customer satisfaction.
- XPO Logistics
XPO's turned to software development to enhance its freight and supply chain operations. The built app has features such as load tracking, live updates, and performance analytics.
The trick to getting results from logistics mobile app development is creating the perfect fit for your transportation business. Luckily for you, that's easy to do.
Start by identifying which challenges and operational requirements live in your departments, and map out how your apps should work together.
Next, select a logistics app development company to build a tech solution that integrates with your existing infrastructure for optimal workload and flexibility.
Key Trends in Logistics App Development
Tracking the trends in logistics app development is like aiming at a constantly shifting target. From breakthroughs in AI to focusing on mobile optimization, it often feels like the industry’s innovations are always evolving.
And while the ultimate goal of these software development solutions stays the same — optimizing supply chain efficiency and improving delivery accuracy — the methods to achieve these goals continue to change from year to year.
Here, we’ll delve into the top four trends in transport and logistics app development to watch in the upcoming years.
#1. AI Integrations into Logistics Apps
Logistics benefits from artificial intelligence, given the industry's complex networks. AI's ability to analyze data allows for accurate predictions of future production and transportation volumes. As a result, more tasks are now being assigned to self-learning transportation management systems at a growing rate.
To be more specific, AI impacts logistics processes through:
- Forecasting Demand
Everything begins with examining historical data (e.g. past sales or seasonal trends) to predict what products will be needed and when. This helps transportation companies ensure they have the right amount of stock on hand. This way, you can avoid running out of products or overstocking items that won’t sell quickly.
- Optimizing Inventory Levels
With the data analyzed, the AI system within the inventory management app makes suggestions about how much of each product a business should keep in stock. It calculates the best times to reorder supplies to avoid having too much or too little. This means logistics and transportation companies can save money by not tying up cash in excess inventory.
- Route Optimization
AI in logistics helps determine the fastest routes for delivery by considering factors like current traffic, weather conditions, and road closures. You can reduce delivery times and lower fuel costs by ensuring drivers aren’t wasting time on inefficient routes.
- Resource Allocation
Imagine that you could decide which delivery vehicle should handle specific orders based on location, load size, or delivery deadlines. This can be done by AI-based software that is built with specific algorithms and fed with clean data.
- Enhanced Customer Experience
There are different queries that can be answered by an AI chatbot - tracking shipments, providing updates on delivery statuses, or offering recommendations based on user preferences. That trick is to build a robust machine learning model that continuously trains on user interactions and feedback. It ensures that the chatbot improves its accuracy and relevance in responding to various queries over time.
#2. AI-Driven Automation
Automation matters.
We hear this over and over again. And most people agree.
But why and how does it exactly matter for the logistics industry? Let’s figure it out.
- Warehouse Automation
Logistical tasks like sorting, packaging, or organizing rely heavily on automation. Without artificial intelligence and robotics, these processes would be many times longer, and the possibility of error – higher. For example, robots with computer vision can sort through products, pack them into boxes, and prepare them for shipment.
- Automated Fleet Management
AI analyzes vast amounts of sensitive data from sensors and GPS to detect patterns and anomalies. This allows you to automatically adjust routes and driving styles to reduce fuel consumption and travel time.
Machine learning, for its part, can predict breakdowns based on the analysis of historical data and the actual car condition. Together, this optimizes complex processes of allocation and routing while reducing downtime and increasing fleet productivity.
#3. Natural Language Processing (NLP)
- Document Management
NLP is a branch of AI that helps computers understand and process human language. In logistics, it’s used to extract and manage information from documents like invoices, shipping forms, and emails. Instead of manually going through paperwork, NLP systems can quickly read and understand the content and pull out requested information.
#4. Mobile-First Approach
First, let’s briefly clarify what is the mobile-first approach. It’s when you initially create a design for mobile devices and then adapt it for desktops. The importance of such a design in the logistics domain lies in the need for on-the-go access to interfaces.
The question is which factors to consider for achieving this.
- User Experience
Well, when developing a logistical app, you need to optimize the download speed. This can be done by reducing the amount of data and using light graphic elements. Intuitive navigation with large buttons and a simple menu lets users quickly complete tasks, while offline functionality ensures they can use an app from anywhere.
- Mobile Integration
With such integration, you can manage field operations and receive live updates. It allows drivers and field personnel to access critical information instantly. This mobile accessibility streamlines operations by providing timely data, facilitating better communication, and streamlining task management directly from their devices.
As long as you’re keeping a thumb on the pulse of logistics app development trends — and always remain open to change — your business won't fall behind.
But, if you‘re feeling overwhelmed by the idea of keeping up with all these insights, don’t worry. It's not necessary to implement all mentioned trends at once. Instead, do deep research and identify which features your app users need the most, and then discuss your design with the development team that provides logistics app development services.
Technologies Used in Logistics App Development
When building custom logistic software, the choice of tech stack affects:
- projected scalability of your tech solution;
- the logistics mobile app development cost;
- complexity of integration with other programs.
Given that, selecting a tech stack for logistic software should take into account not only technological but also business factors.
Below, we examine popular technologies used in the logistics app development process - both for the front-end and back-end sides of an application.
Mobile apps
React Native and Flutter are the two main frameworks for cross-platform mobile app development. React Native allows you to develop apps for iOS and Android using a single JavaScript code which reduces software development time and resources. Flutter uses the Dart language and provides high performance with native components that are rendered directly.
Web platforms
Angular and React are popular choices for web applications. With Angular, you can create scalable projects with a complex user interface. It provides a strict framework that helps keep code clean and easily scalable. React is often used to develop corporate applications, where high stability and controllability of development processes are important.
Databases
The right type of database will depend on the structure and volume of data you will work with. PostgreSQL and MySQL are the main databases used to store structured data. PostgreSQL is known for its support for complex queries while MySQL is a lightweight database widely used in web applications that require high performance and stability.
Cloud platforms
Cloud platforms such as AWS or Google Cloud provide a wide range of services, including data management and storage, information processing, and server deployment. They allow you to scale your infrastructure depending on the needs of the development process. This is important for logistics applications, as loads may vary significantly throughout the day or seasonally.
APIs
A RESTful API or GraphQL is used to integrate different parts of the transportation app system. The RESTful API is a standard approach to creating web services that allows for reliable and scalable interaction between various system components.
GraphQL is a newer approach. Developers use it to query only the data they need precisely. This reduces the amount of unnecessary data that is transferred between the server and the client and may reduce data breaches.
Real-time and tracking
You can use Google Maps API or Mapbox if you want to add maps to your application, display locations, routes, and so on. The choice between the two depends on the specific needs of the project. The Google Maps API is more well-known and has a wider set of features, while Mapbox is more user-friendly when it comes to customizing the maps to your business needs.
Essential Features of a Logistics App
When brainstorming on the logistics app design and structure of your logistics app, consider the key functionalities that the app's user will definitely like.
The main features of the logistic application are as follows:
- Real time tracking and GPS integration. This feature within a logistic app allows users to monitor the exact location of their shipments.
- Inventory management and optimization. Users can keep accurate track of their stock levels, preventing overstocking or stock shortages with such functionality.
- Automated scheduling and route planning. It organizes delivery schedules and optimizes routes based on data like traffic conditions and delivery priorities.
- Customer notifications and communication tools. As the name suggests, this feature keeps users informed with updates on their delivery status via push notifications or messages.
- Data analytics and reporting features. It’s needed for providing data-based insights on delivery times, fuel consumption, and entire processes efficiency.
- Chatbots and real-time communication channels. With AI bots. you can solve the client's urgent requests at any hour and increase customer satisfaction.
Now that you know which elements a logistics development team should include in your application, let’s clarify the pros and cons of bespoke and pre-built transportation solutions.
Custom vs. Off-the-Shelf Logistics Solutions
So, we come to the most important section, which explains which logistics solution to choose – custom or off-the-shelf. In our overview, we will outline key considerations that will help you make the right decision.
Custom logistic apps
Bespoke transportation solutions are built with business requirements in mind. Moreover, you can change the structure or design of your app during the actual logistic app development process. This will help to respond to changes in the market in time.
One more important thing is that custom logistics apps include only the features you need, so you don’t need to pay for unnecessary functionalities. This contrasts with off-the-shelf solutions, which often bundle the costs of all elements, whether they’re required or not.
To sum up here, bespoke logistics solutions have the following pros and cons:
Pros:
- Customized to meet specific business needs;
- Full control over features and data;
- Influence over the direction of software development
- Avoidance of expensive, recurring price hikes.
Cons:
- Greater development services cost;
- Extended deployment timeline;
- Increased stakeholder involvement and decision-making;
- The need for ongoing maintenance and updates.
Off-the-shelf logistic solutions
Off-the-shelf app is standardized software built for the mass market. It's ready for instant use. These products are designed to streamline general operations, offering a wide range of features that cater to a broad audience.
Most modern solutions use SaaS (Software as a Service) delivery models. Namely, the software is hosted in the cloud with access via the Internet. The main disadvantage of such logistics solutions is that they don’t cope with more specific tasks.
Overall, the pros and cons of pre-built mobile apps look like this:
Pros:
- Rapid deployments;
- Reduced upfront costs;
- Extensive, all-encompassing feature set.
Cons:
- Lack of data ownership;
- Risk of vendor lock-in;
- Limited customization options;
- Configurable solutions may not fully align with business processes;
- Integration challenges can arise, potentially requiring expensive workarounds;
- Vendor decisions may not support a company’s growth;
- Ongoing costs and potential subscription price hikes driven by vendor profits.
Some examples of ready-to-use logistics software are PCS Software, Körber Supply Chain, and Bringg.
What are tips for making the right choice between custom and off-the-shelf logistics apps?
Here’s a useful framework for decision-making: if you need a solution for a common business issue (e.g.financial tracking) a generic software should suffice. However, if your value proposition depends on the unique functionality of the software, developing a custom solution may be more beneficial. Staying at the forefront of innovation often means moving beyond standard, widely-used solutions.
Your Next Step
The success of custom logistics software development hinges on understanding what your business needs and picking the right tech choices based on the latest advances. Once these needs are met, you can follow a step-by-step process to develop a transportation solution.
Are you looking for logistic app development services? Our team, including software engineers, data scientists, UI/UX designers, and DevOps experts, can create impactful tech solutions that bring your business value. For expert assistance in logistics app implementation projects, contact us.