By 2031, the logistics software market will reach an impressive $18bn (according to Allied Market Research). However, amidst the abundance of offerings, how can you choose the one that will solve your business problems and help your business grow? Universal platforms often do not take into account the specifics of a particular company’s operational processes — that’s where customised logistics software development services comes in. This is a toolkit that allows you to create software that fits perfectly into your business processes. Below we’ll look at the five key features that must be in such a solution for you to effectively manage your supply chain and take it to the next level.
1- Real-time tracking: transparency and control
In a highly competitive environment, in order to survive in the battle for customers, you must do everything to improve service levels and maximise speed, and therefore ensure transparency of shipments. After all, real-time monitoring of shipments will avoid delays and other problems in the future.
How does it work? Monitoring shipments using GPS and IoT (Internet of Things) allows you to accurately track movements, create detailed routes and visualise them on a map. In turn, status notifications of events such as: ‘arrived’, “delayed”, “route change” and other similar operational information allow for quick response to changes and notify all concerned. Data visualisation on interactive maps also facilitates optimal decision-making.
How does it work? Monitoring shipments using GPS and IoT (Internet of Things) allows you to accurately track movements, create detailed routes and visualize them on a map. In turn, status notifications of events such as: ‘arrived’, “delayed”, “route change” and other similar operational information allow for quick response to changes and notify all concerned. Visualizing data on interactive maps also facilitates optimal decision-making.
Benefits of real-time tracking:
1. Increased efficiency through the use of efficient routes and reduced cargo downtime.
2. Increased customer satisfaction due to fast delivery and prompt resolution of problems.
3. Notification system prevents loss, damage and other unforeseen situations.
4. Transparent processes demonstrate reliability, all of which increases customer confidence and the reputation of the company as a whole.
Lack of real-time cargo monitoring systems inevitably leads to delays in deliveries, which in turn reduces a company’s competitive edge, affects its reputation and leads to customer and money drain. However, the choice of solution depends on the specific needs of the business. Third-party services allow for quick implementation and customization. While custom solutions have the ability to adapt to the client’s business and integrate into existing systems.
2. Forecasting demand: plan ahead
Unpredictable demand is probably the worst enemy for any business — this is the generalised conclusion that logistics software developer, Digiteum is approached by most of its clients. Seasonal fluctuations, economic crises, new competitors, and changing consumer preferences all make demand forecasting a challenging but important task.
Applying AI to analyse large amounts of data and identify dependencies may be the only solution that simplifies the task of building demand forecasts. It uses data based on past sales, marketing campaigns and external factors. Seasonality and even recurring demand patterns are taken into account.
The following can be credited as an asset for accurate demand forecasting:
1. Inventory optimization: minimizing over-supply and reducing shortages.
2. Improved planning: accurate planning of production, purchasing and goods movement.
3. Improved operational efficiency: reducing cost levels associated with storage and markdowns.
4. Improved customer service: availability of required goods at the right time.
Without good forecasts, a company is doomed to fall behind its competitors. Shortage of goods results in loss of customers and revenue. On the other hand, surplus goods create more warehousing and markdown costs. Both of these situations significantly worsen financial performance.
Forecasting solutions are implemented based on complex methods that include analysing historical data using statistical models, applying machine learning to accurately predict and build sophisticated forecasts, and integrating expert judgement to make adjustments. These tasks can be done manually, as has been done in the past, but in this case, it makes more sense to apply them to smaller companies. For medium to large sized companies, automated complexes are a very important means to compete and grow successfully.
Investments in forecasting systems should be seen as advanced investments in business development. By systematically monitoring forecast accuracy and revising forecast models, business management can be improved and adjustments can be made in a variable market. For example, Walmart, with the help of a logistics software development service, implemented AI-based forecasting, resulting in a 20 per cent reduction in oversupply and a reduction in resources allocated to storage.
3. Warehouse management: automation for efficiency
Warehouse logistics is undoubtedly the most important part for any company involved in the production or sale of goods. By organising processes in the warehouse, order processing times are reduced, costs are lowered and customer satisfaction is increased.
Warehouse automation makes the most efficient use of space by optimising product placement and special shelving systems, which significantly reduces the time spent searching for goods and processing orders. Furthermore, the use of robotics technology and IT solutions performs many routine processes such as stock control, order fulfilment and inventory, which increases the overall productivity of the warehouse.
Benefits of automation include:
- Increased productivity: faster order fulfilment, less time spent searching for items.
- Reduced errors: less human involvement, improved accuracy of operations.
- Better data recording: automated inventory data processing, reduced accounting errors.
- Reduced costs: reduced labour force, more efficient use of warehouse space.
- Increased flexibility: ability to respond quickly to changes in demand and product mix.
The company’s unautomated warehouses hinder scalability. Expansion inevitably leads to additional staff costs, but it does not eliminate errors, which also leads to costs. Ultimately, all of this leads to lower customer satisfaction and loss of customer loyalty.
Amazon Robotics has been shown to increase order processing speeds by up to 50%, while WMS systems help reduce human error by 30%, significantly improving productivity and reliability of operations. Warehouse automation is key to increasing efficiency, reducing costs and improving customer service.
4. Route optimization: the key to efficient logistics
Smart route planning is transforming from a logistics function into a strategic issue to reduce operating costs and improve delivery efficiency. Dynamic real-time planning, taking into account current road conditions, traffic congestion and other factors, saves fuel and reduces delivery times.
All of this is made possible by integrating with navigation systems to get information on current road conditions. This in turn opens the door to the fact that routes can be changed in real time.
The benefits of implementing route optimization are clear: reduced transport costs, improved order accuracy, and therefore increased customer confidence. Ultimately, routing is a good investment for the future, allowing companies to be more competitive.
5. Document management: the digital transformation of logistics
Logistics is a field where document management is everything! From delivery notes and invoices to customs declarations. Obviously, manual labour for large volumes of information is the most expensive in terms of costs, time, and is also risky in terms of all sorts of errors. Document automation is considered to be the most practical solution to this problem.
Implementation of electronic document management is an opportunity to significantly increase the speed of all processes. This integration, which combines the document management system and other business systems, such as ERP, makes it possible for all business structures to interact quickly. Logistics software development companies such as Digiteum offer document management automation organically combined with route planning automation. Cargo, customer and transport data form a common library for both systems.