The best software for automation in the logistics industry in 2023
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The global freight and logistics market is expected to grow from $14.56 billion in 2021 to $15.71 billion in 2022 at a compound annual growth rate (CAGR) of 7.9%. The market is expected to grow to $18.69 billion in 2026 at a compound annual growth rate (CAGR) of 4.4%.
RexSoft as a logistics software development company has broad experience in custom software development, as well as for automation purposes. We’re creating business-tailored solutions that are capable of advanced problem solving, and logistics process automation is one of the problems our developers can solve.
In this article, we’ll take a look at ideas for custom logistics software that could drastically improve your company's workflow. And, to top it off, we’ll show you some of the best and most effective examples of the logistics automation software we’ve created.
Read on to find more!
Relevant videos about automation in logistics 🎥
What is logistics automation?
Before we head on to all the most interesting details, we have to start with the basics. Logistics process automation stands for an advanced improvement that freight management software can do to a business. To put it simply, your work processes are automated when they are self-managed or self-conducted and don’t need anyone to manually work on the routine tasks.
Automation in logistics, for example, can bring your business more value by optimizing the supply chain, allowing your drivers to take the best routes created by AI or advanced analytics, and automating warehouse management. The possibilities are endless and you just have to find the solution that can help your business change for the better. Logistics automation not only increases value but also can significantly increase the profits of your company.
We’ll get there in a few words. For starters, let’s find out what processes custom software can automate for a logistics company.
What logistics processes should be automated?
It’s easy to assume that if automation in logistics is such a profitable solution, then you simply have to automate every process in your business. In fact, this is far from being true. You might be limited by finances, time, or any other obstacles on your way; some of your business processes in a logistics company might not even need the automation.
The supply chain is a process of delivering goods from the supplier to a customer, with all the directives it has to go through. There are lots of ways for its automation, but foremost it’s route planning. If you automate this process, your supply chain can be much shorter, take less time, and be cost-efficient.
If you have big data or AI solutions implemented in your logistics automation software, you could also predict what kind of product will be trending on the market during certain seasons. This leaves you with more time for preparation, no excess items in the warehouse, and, essentially, more satisfied customers.
One of the biggest issues the supply chain has is transparency. Automating it with logistics software can change it drastically. If you’re worried about your goods that are shipped from one destination to another, add a tracking system. This way you’ll see when the driver stops for a break, which route they’re taking, and even predict the approximate time of delivery.
Warehouse management automation can be done in various types, however, the biggest benefits from logistics automation still remain. For example, warehouse management software will make inventory calculations more accurate, customer satisfaction rate higher, and will be putting less pressure on your staff.
Here are the four main types of warehouse automation:
- Basic warehouse automation. This type simplifies manual tasks that would’ve required manual labor otherwise.
- Warehouse system automation. This type of logistics automation software usually involves innovative technologies implementation like, for example, artificial intelligence or big data solutions.
- Mechanized warehouse automation. It stands for solutions that allow using robotic systems in everyday warehouse working processes.
- Advanced warehouse automation. It combines automation via innovative technologies like AI with robotic force to simplify and fasten the workflow.
The benefits of warehouse automation can drastically change a logistics company’s workflow and productivity. From software aimed to make your warehouse more advanced, you can expect to reduce manual mistakes, lower operational costs, optimize warehouse space, reduce shipping errors and inventory loss, enhance data accuracy, and make other beneficial changes to your business.
This can be seen as a part of the supply chain, but we decided to separate these two processes for a reason. You can optimize the delivery processes in your logistics business with various software solutions for automation. For example, this could be tracking applications for drivers to check in and check out. Applications like this allow your drivers to always be online. You will know when they picked up the delivery when they finished the route, and what stops they did.
Delivery automation will increase customers’ satisfaction rate and predict the best route for the goods delivery as a supply chain software would. However, since software for delivery purposes is directly inclined to satisfy your customers’ needs, it’s more likely that the benefits from it will be more noticeable in a short time.
Fleet management is one of the essential logistics processes that is a process responsible for all the vehicles at your disposal. The automation of this process can drastically improve the workflow of your logistics business by cutting expenses, making your vehicles safer, and overall providing you with high-quality options to track the vehicles’ conditions.
Among one the essential automation in logistics, the benefits are cost optimization. One of the ways to achieve it is fuel consumption control. It would allow you to rethink the route or detect a worker who has dangerous driving habits. One way or another, it will make your business more sustainable.
Automated reports are one of these technology benefits. You’ll get generated and detailed reports after every usage of a vehicle.
And the biggest advantage of fleet management automation is a preventive control. You can track the condition of your vehicles and improve it before any malfunction occurs. This way, your drivers and goods will always be safe, you’ll be far away from accidents, and, as a result, your business will become more cost-effective.
Benefits of automation in logistics
The benefits of automation in logistics can be countless since for every business different things will be the most drastic. However, we’ve decided to tell you about the most visible and crucial benefits that your logistics business will experience after the automation.
Less manual errors
Everyone knows how expensive and complicated manual errors can be. Through an ERM system, you can integrate inventory management into your business, and automate manual processes. The routine tasks will be performed automatically, so you will face errors in documentation much less than before.
Improved customer service
Since your customers will be more satisfied with the new service, they’ll use your services again. For this, you can develop a CRM system for your logistics business. The automation of customer relations will allow you to notify your customers about new deals and offers, be always in touch, and track the customers’ preferences.
By getting software for logistics automation you also get the possibility to analyze more data and make your business more accurate and proficient. You can plan how to spend resources according to the current needs of both your business and customers. CRM systems will help you analyze what services or products are most popular and better understand your customers. Fleet management software is the best way to analyze the state of your vehicles, the capabilities of the drivers, and the profitability of your routes.
Your business will be faster if you choose to automate it. Logistics automation software allows you to increase the speed of the workflow by automating the individual processes and reducing the time spent on fixing costly manual mistakes. Logistics automation speeds your business up by giving advanced analytics and plans on delivery and supply chain processes, making the workflow transparent, and customer relations more accurate. Automation in logistics allows your staff to forget about routine tasks and focus on the more important needs of your business.
Best software for logistics automation
If you’re excited about the automation of your logistics business, you should know which software solutions you should use to make the most out of it. Read on to find out which type of applications will be most effective for your business.
ERP stands for enterprise resource planning software. It’s beneficial for logistics automation since it allows to reduce risks that might consume the company’s budget. ERP manages the flow of information that courses through your company providing you with analytics that will help you better understand your business’ capabilities and needs.
The supply-chain management system will nullify all the complications associated with the supply chain. This software for logistics process automation will make your supply chain more transparent and effective.
Warehouse management software allows your logistics company to have more effective tracking of inventory. The higher level of accuracy for delivery time and order fulfillment this automation software offers will increase your customers’ satisfaction level.
Customer relations management will allow you to improve the way you connect with your customers and nullify manual tasks associated with it. Your clients will always be informed of new offers and have a better experience from the sale cycle. There is plenty of ready-made software for logistics process automation. However, we advise you to use the custom logistics software in order to get unique benefits aimed at the satisfaction of your business requirements and needs.
A real example of logistics automation: costs and time
Recently our team worked on the logistics automation application and here’s how it went.
We deployed the following features in the app:
- contact form for the customer;
- web and mobile version of an app;
- an ability to form requests;
- tracking system;
- storage for images of goods;
- enabled electronic signature.
We had a team of six people working on this app.
- PM - 80h
- IT architect - 40h
- Designer - 200h
- Front-end developer - 360h
- Back-end developer - 320h
- QA - 110h
It was developed in about 1100 hours and cost our customer around $40,000. However, the improvement this logistics automation application made in our client’s workflow was drastic; it increased the profits by 7 times and reduced manual mistakes associated with request forming by 60%.
Examples of logistics automation software by RexSoft
Our team has extensive experience in logistics automation software development and each of our applications improved the workflow of our customers’ businesses. Read along to see how it happened in numbers!
For this project, we combined custom and out-of-the-box solutions to achieve maximum effectiveness. As a result, we got a unique logistics product that makes the moving process much easier for the end-customers and brings profits to our client.
It improved the effectiveness of the application and increased the profits our customer gets from each order since the application is fastened.
This application is capable of connecting a user with a dispatcher in order to ease the selling process. Our customer's sales of used cars and databases with pictures help them ensure their security as much as the tracking system.
Overall, this logistics application increased the profits of our customers’ business by 7 times and the number of successful deals has grown by 86% as well.
This logistics CRM development is proved to be perfect for vehicle tracking, route calculating, and order management. We created a cross-platform application that improves the security and transparency of the transportation processes since it allows our customers to integrate it into different applications to buy or book tickets.
Transportation CRM administrators can view statistics of ticket sales from different platforms via API, track the buses' movement on the map, get notifications about any malfunctions or unplanned stops, and check vehicles stats.
It reduced the number of hardware malfunctions by 13 times with an advanced analytics solution. The speed of business workflow was increased by 30% over the 2 months after the CRM for logistics automation implementation.
Logistics automation software can not only improve but change your business. To ensure that your development project will be successful, you should figure out your needs and get the type of software your business needs most. And find a reliable technical partner!
If you need help from specialists with extensive expertise in logistics automation and technical background, contact us! We will gladly consult you.
Why do I need a logistics automation app?
Logistics automation app can drastically improve your business workflow and increase profits. It also can multiply the number of customers you have and free your staff from routine work for more important tasks.
What logistics processes can I automate?
It depends on your business needs. You can automate fleet management, supply chain, customer relations, or resource planning. If you don’t know what would benefit your business more, contact us for an IT consultation.
How much does a logistics automation app cost?
The latest logistics automation app development done by our team was about $40,000. But the pricing depends on your needs, requirements, and even budget if you decide to work under the Fixed Price model. So, for a unique price calculation, you definitely should contact us.
How do I know RexSoft is a reliable company?
Read the testimonials from our customers or check the effectiveness of the software samples we wrote about in the article! You can see us in action by contacting us.
Bogdan MisiurenkoBusiness Development Manager