Transportation Dispatch Software: How to Develop and How Much Does It Cost in 2022

According to Precedence Research The global logistics automation market size accounted for USD 52.6 billion in 2021 and is expected to hit around USD 162.5 billion by 2030 and is poised to grow at a compound annual growth rate (CAGR) of 13.15% during the forecast period 2022 to 2030.

Depending upon the basis of application, the transport management segment is expected to have a dominant position in the coming years. This segment has dominated the market in the past and it is expected to grow well during the forecast period. Due to an increased use of various advanced technologies for the supply chain and logistics the market is expected to grow well during the forecast period.

Rapid multiplication of the number of customers in online retail is inevitable. In order to cope with growing volumes, companies in the e-commerce segment are implementing various projects to automate familiar processes. One of them is the implementation of the Transportation Management system (TMS). This is the common name for technologies that automate the company's fleet management and allow businesses to scale by optimizing the transportation of goods. 

In this article, we look at TMS in the context of transportation dispatch software, tell you what it is, how much does it cost to develop, what its functionality should be, etc. Read on to learn more.

What is transportation dispatch software and which processes does it automate?

Transportation dispatch software is essentially a transportation management system. Truck dispatching systems are designed to automate the processes of planning and execution of trips, control revenues and expenses related to transportation, and manage vehicles. There are a large number of different transportation systems on the market, and choosing the right one is a responsible and rather complicated task. 

With the help of web based dispatch software companies can: 

• reduce the time of order processing; 
• optimize logistics; 
• ensure an even loading of vehicles;
• reduce the volume of manual operations by three times;
• get rid of peak loads and make the load evenly throughout the day. 

Transportation dispatch software features: main modules and roles

Any transport dispatch software consists of a number of modules related to each other and performing certain functions. At the heart of every transportation dispatch software is always a CRM system for customer relationship management and delivery tracking. Besides, web based dispatch software may include modules for automating processes related to freight transportation:

• Warehouse Management System(WMS);
• Enterprise resource planning (ERP);
• Enterprise asset management (EAM);
• Shop floor management system for transport repairs (Manufacturing execution system, MES);
• Supply chain management system (SCM).

In general, the criterion of dispatch software for trucking functionality is the most important, because if the functionality does not meet the requirements, then you need significant revisions, which will increase the cost and timing of the project. Accordingly, it is very important to analyze your own business processes and understand what you need. Consider the functionality, which is often in-demand in enterprises:

Transportation dispatch software: custom vs ready-made solution

Companies wishing to own transport dispatch software always face a choice between buying an off-the-shelf solution or developing their own custom software. Let's consider both options in more detail.

Buying a ready product

Pros

• You get a ready product, which has been tested in many companies;
• You are promised a fast deployment;
• The system is usually well documented;
• The cost of major components is known in advance.

Cons

• Any deviation from the logic of the purchased system may turn into an insoluble problem or cause significant financial and/or time costs;
• Most system components are closed;
• The documentation does not reflect the changes made during the implementation;
• The initial cost of the system usually increases significantly with the implementation;

Reorganization of activities due to the need to adjust processes to the final product.

Custom development

Pros

• A transportation dispatch software tailored specifically to the needs of your company, taking into account the specific organization of your business;
• High-quality support, since the source codes of all truck dispatching software components, belong to you;
• Documentation, both staged and user documentation;
• Cost estimates are made separately for truck dispatching software modules. The risk of spending a significant amount of money in vain is minimal.
• Experienced professionals are able to understand the specifics of your company, and build an information system that is not only convenient for your users but also transparent for managers
• System of access control. 

Cons

• You have to solve arising questions and take responsible decisions, at the stages of defining requirements and coordination of versions and documents; 
• For the successful functioning of the developed and implemented information system the active position of the top managers is required;
• The total cost of the dispatch software for transportation depends only on the customer's appetite.

What to choose?

According to RexSoft specialists, they often observe a situation where enterprises consistently change their development strategy. Some outsource development only after years of trying to create a coherent transportation dispatch software that meets their current requirements. 

But the vast majority of customers who have commissioned a third-party software development company will no longer consider even the possibility of buying a ready-made boxed product. Custom web based dispatch software copes too well with their tasks to switch back to a boxed solution after using them. But how such projects are created? Let's find out.

Custom transport dispatch software development process: team and technologies

The development of transportation dispatch software is a complex process with many people involved.

The approach to transport dispatch software development itself is as follows:

• Defining the goal of the project
• Creation of the system architecture
• Code writing
• Testing
• Maintenance​​​

Team

A good workforce is often 50% of the success of the entire project. So who usually makes up the transport dispatch software development dream team?

Best technologies

The masters have been defined. Now let's have a look at their tools. A good truck dispatching system usually consists of two main components i.e. the web version and the mobile app. The technologies for each of the components will be different. 

For logistic web app

React js - frontend

One of the most popular JavaScript frameworks to create frontend web resources. Its features allow you to perfectly cope with information processing on the fly, which makes it almost an ideal choice for truck dispatching service.

NODE.JS - backend

A runtime environment based on the V8 engine. Using Node.js as a backend, you automatically get all the benefits of full-featured JavaScript development, including optimal speed, sharing and reuse, a huge number of free tools, ability to do cross-platform development.

For logistic mobile app

Flutter - frontend

An advanced framework developed by the guys from Google. The main advantage of Flutter is the cross-platform approach. The framework allows you to create functional applications with minimal effort, which will run equally well on any operating system. 

React Native - frontend

React Native uses Javascript or TypeScript to develop applications and translates React Native components into platform components. This is great for creating fast applications for any mobile OS. Its versatility lets you build anything from business apps to mobile games.

NODE.JS - backend

We've already described above the benefits of this backend for web apps. It's great for making the backend for mobile versions of transport dispatch software as well.

Transport dispatch software development cost: a real case example

So we are done with the technology, as well as with the terms. It is time to answer the most pressing question. How much does it cost to develop transportation dispatch software? To find it out, we suggest considering the real case of RexSoft software development company.

Specialists had to develop a transportation dispatch software for the web, iOS and Android, which provides the delivery of vehicles. The system has three types of users: administrator (dispatcher), client and driver. The software has an admin panel, which will serve as a control room and contain the functionality for:

• user registration;
• order formation;
• calculation of the cost of transportation;
• Distribution of orders between the drivers of the company;
• GPS - navigation, fixing the delivery;
• Generating reports on completed orders.

The functionality of the driver's mobile app allows them to:

• receive orders for transportation from the dispatcher;
• inspect the condition of the vehicle;
• receive confirmation of delivery via electronic signature;
• Get feedback from the customer.

The dispatch software for transportation works as follows:

• The customer contacts the dispatcher.
• The dispatcher sends the form to the customer to fill in (through the web version).
• Then the request for transportation is transferred to the driver (on the mobile version).
• The driver starts to track the trip. When the driver arrives to load, he takes a photo of the car. All photos are stored in the application for transportation, which are available to the dispatcher, driver, and customer.
• Representative of the customer signs with electronic signature, thereby confirming the condition of the car before transportation.
• The driver leaves. At point B - the Customer's representatives accept the cargo. 

The dispatcher can see the movement of the car on the map, and forced stops. The driver records all stops (to eat, rest). There is functionality that allows you to plan upcoming trips to avoid downtime of cars.

The cost of the app is calculated based on the time spent. In this case, it looks like this:

• PM - 80 hours.
• IT architect - 40 hours
• Design - 200 hours
• Front-end - 360 hours
• Beck - 320 hours
• QA - 110 hours
• Total - 1110 hours

With a cost of a specialist of about $35, such an application will cost about $40,000. Development time is 3-4 months and you become the owner of the software, allowing you to take your business to the next level.

***

To summarize, we can say that dispatch software for transportation is a functional and practical system for freight management, which can be supplemented by solutions and modules, ensuring that all the necessary functions for your company are available. The main thing is that its development should be done by high-class specialists, but don't worry about that, because you can always turn to professionals from RexSoft. Our specialists work closely with customer representatives and go deep into clients' business processes, which allows them to choose the best solution for you. As a result, you get high-quality software that fully meets your business needs.