Nowadays, logistics and supply chain management are more than just business functions. They are a vital link that keeps modern business, commerce, and trade on track in the global economy. For a long time, logistics has been associated with long-distance freight and shipments. However, changing business models and customer requirements have drawn in a lot more industry leaders, such as eCommerce, quick commerce, and others.
Together with the new highs we have reached new struggles. Retailers facing high customer demand are struggling to manage order fulfillment, carriers are often out of delivery capacity, and logistics and transportation providers are seeing an influx of demand for B2C delivery and next-day delivery. Thus, they are looking for effective solutions (logistics companies with the latest logistics management software to better manage their shipping costs, efficiency, and speed.
While some logistics and transportation companies turn directly to ready-made, off-the-shelf logistics solutions, others prefer customizable logistics management software to improve their services. There is also the third option: building the relevant technology in-house. But, which approach is the best?
The dilemma of building vs buying is not new and applies to most business operations. There is a huge impact and great implications for this strategic decision. After all, logistics software impacts many roles within the business – management, dispatching, drivers, partners, shippers, and end customers. Like any other business decision, companies have to consider the pros and cons of both options.
This article explores the key considerations for companies when choosing to build or buy logistics software of any kind.
The very first step. Understanding your business goals
Logistics management software is all about replacing manual logistics processes to enable faster growth of delivery volume, greater delivery speed, better risk management, and problem-solving.
When searching for a logistics management software system, it’s crucial to identify the most important and relevant features according to your operational requirements and specific business needs. This will help you choose the right type of logistics software.
Key features in logistics software:
Once evaluated and understood the business and organizational pain points and the goals to be achieved, businesses need to get a neutral assessment of their current resources and devise a software introduction plan.
What’s next?
Below we have listed 5 crucial steps and universal tips:
Rather than a standard off-the-shelf solution, custom-built SaaS platforms are better options for end-to-end management capabilities. What about in-house development?
In-house logistics management systems
Most retailers considering in-house development assume that they will be increasing savings by using resources that they already have, pushing an in-house IT team to build the logistics management software they desire. They believe it will be the cheaper and faster option. IT teams also think that this way they will have greater control over their program and maximum customization. But is it that true?
In fact, yes, it can be a great option for large companies that have available budgets to use for building and integrating an in-house system, and time for the whole process. Some companies do have success with this method. However, what is often not said is that most of them come out spending significantly more than originally planned (often because the planning, gathering teams, training, the development itself and testing take longer than planned).
That explains why recently many businesses prefer the alternative: using custom-developed logistics management software systems.
9 reasons to choose custom logistics software development
Every piece of logistics company software must be made-to-measure for the organization that will implement it.
At Utah Tech Labs, we help you get your best results. We take the time to understand your brand, your current challenges, and how to achieve this, all while adhering to your budget requirements.
Start the creation of your custom logistics software with our help.
For free consultation about logistics management software development click here.
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View the full presentation:
2023-04-24
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