Transportation Dispatch Software: How to Develop and How Much Does It Cost in 2022
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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.
Relevant videos about transport dispatch software 🎥
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:
The ability to account for incoming and outgoing shipments
For production, it is important to account for both types, separating the needs, recording flights for all directions, as well as getting all statistics in analytical sections.
Ability to account for the transportation of large cargo
It is important to understand that in the case of transportation of finished products, there may be a need for delivery of small volumes with detailing to the goods transported.
Formation of multi day trips
Often transportation means the delivery of raw materials or products to remote regions. For this purpose, it is necessary to take into account the flights of more than one-day duration.
Accounting of cargo places and loading of vehicles
The system must be able to calculate the loading of vehicles based on the incoming transportation needs and take into account the geometry of the body of the vehicle.
Work with a large number of carriers
The transportation dispatch software should cooperate with a great number of carriers with their own conditions of work and tariffs. The freight system shall enable storage of this information and help responsible employees to select a carrier for one or another shipment.
For manufacturing companies, trips are often long and involve significant volumes, so it is important to know where the vehicle is, what points have already been visited, and what work has been done. Trackers or special applications on the mobile client can perform the monitoring functions.
Ability to manage vehicles
It is necessary to keep records, manage repairs, track materials and units, record costs, and issue waybills.
Accounting and allocation of costs
The web based dispatch software should make it possible to account for direct and indirect costs since this statistics allows to determine the cost of production, as well as many other important indicators.
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
- 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.
- 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.
- 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.
- 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
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?
The project manager is the main person in charge of the project. Managers are responsible for the quality implementation of projects on time and on budget. They ensure that sufficient resources are made available while managing the relationship with the team and all stakeholders.
IT Architecture Specialist
This person is responsible for designing a transport dispatch software’s architecture that meets the requirements (both system functions and system workloads). Their tasks include designing the transportation dispatch software architecture and technology stack selection, overseeing compliance with architecture recommendations, accepting complex technical decisions, and advising the development team.
These guys are responsible for designing a user-friendly and attractive user interface for the transportation dispatch software. Their tasks always include developing screen designs, design concepts, guidelines, and sometimes optimizing user interaction (making recommendations).
Those who create the heart of the dispatch software for transportation, namely its code. They are involved in transport dispatch software development (code writing, database structure reviews, etc.), decide on the development method, perform quality control, code reviews, etc.
The QA engineer's tasks include minimizing bugs in the transport dispatch software, requirements testing, test case, and test plan development, auto-testing, and manual testing of the system (regression, load, functional, etc.).
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
NODE.JS - backend
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
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.
What is truck dispatching software?
Truck dispatching software is a transportation management system that provides comprehensive automation of all logistics business processes.
Why does a business need truck dispatching software?
Truck dispatching software helps make transportation more efficient and faster, control budgets, calculate the performance of carriers, transport logistics, and much more.
Why is it worth developing truck dispatching software with RexSoft?
RexSoft is your reliable logistics software development partner. We have over 9 years of experience in developing complex systems for businesses.
How much does it cost to develop a truck dispatching software?
It depends on the project and its functionality. With optimal rates and specialist workload, truck dispatching software will cost about $40,000.
Bogdan MisiurenkoBusiness Development Manager