Logistics and supply chain software development

Businesses where the global market never sleeps, trade routes are shifting, and customer demand is fluctuating unpredictably. The only constant in these rapidly changing circumstances is the pressure to deliver faster and more efficiently. How does one deal with all these? With robust logistics and supply chain software solutions that can navigate the complexities of a global market.

In this article, we are focusing on supply chain management software and custom software solutions in the field of logistics. We'll delve into the latest advancements, statistics, challenges, solutions, and standards shaping this thriving field. We'll also give you an insider look into a real-life case study on how software development digitized the operations of ShipMe.

However, it is crucial to understand the broader context of supply chain management (SCM) operations and needs. First, we'll introduce you to the general figures and statistics and then discuss supply chain management software development. Let's get started.

Statistics

Following the slowdown due to the pandemic, the worldwide market for logistics process automation is expected to recover and grow from $32.7 billion in 2023 to $51.2 billion by 2028. The regional compound annual growth rates for logistics automation are forecasted as follows: North America - 15%, Europe - 35%, Asia Pacific - 40%, Middle East & Africa - 5%, and Latin America - 5%.

The supply chain management software market is anticipated to follow this growth path and is expected to reach $31 billion by 2026.

In this competitive landscape, companies aim to reduce costs and enhance the client experience by requesting custom logistics software development services and adopting new technologies. The top technologies chosen by supply chain businesses include analytics (for supply chain planning and forecasting) tools, IoT, cloud technologies, collaboration tools, scanning, and intelligent data capture. Additionally, most supply chain companies are planning to invest in artificial intelligence and machine learning in the near future.

However, statistics indicate that supply chain technologies failed to live up to expectations for majority of the companies in 2023. This is largely attributed to only partial digitalization and a focus on near-term priorities while long-term digitalization was overlooked. Despite this, custom logistics software development remains the best way to improve performance in the growing market, where the speed of delivery and client-side demand are increasing exponentially.

Supply chain software standards

So, what standards should supply chain software development meet for investments to pay off and meet expectations?

• The SCM software should be created with a purpose in mind.

Clear expectations of the desired results are crucial. This implies not only quantifiable ROI but also the need to monitor workflow changes for improved efficiency and potential time and resource savings that can be invested in further custom logistics software development.

• The supply chain technology must be resilient, robust, and stable.

Here we can rely on statistics with 86% of businesses indicating that risk prevention is their top priority in custom logistics software development. This is achieved by focusing on building technology platforms tailor-made to handle their unique operational challenges and industry risks.

• The SCM software should smoothly integrate with existing systems and processes.

If a company implements a new management tool in its existing system, compatibility with IoT devices, existing workflows, and other apps is essential. Even though it sounds like a long play, this will not be an overwhelming task with the right vendor that is able to write clear code and work with integrations.

• The technology must have the ability to adapt and scale as business needs and market conditions change.

The SCM software should be able to integrate modules and advancements in any part of the logistics such as warehousing, transportation, order management, and other tasks. Being connected with businesses experiencing periodic volume fluctuations due to the demand, the technology has to be scalable so that high loads wouldn't affect the performance.

• It should utilize real-time data and analytics to provide actionable insights.

Data helps to see the progress of an organization as well as predict potential threats and make informed decisions. There are different ways to integrate analytics into your supply chain for convenient data capture and further visualization.

• The technology should provide transparency across the entire supply chain.

Every stakeholder needs to see the relevant logistics processes and operations. Real-time tracking of goods, inventory levels, and operations — all can be done with thorough custom software development that provides visibility to the performance at every step of the route. Moreover, the operations' visibility isn't simply about knowing what's happening currently, but it's about harnessing the data generated at every step and leveraging it to predict future trends, potential bottlenecks, and improvement areas.

• Logistics software development must comply with industry regulations and security standards.

There are standards that provide a framework for organizations to prevent risks associated with sensitive data and high-value goods. Among the standards aiding information security management are ISO documents, specifically the ISO/IEC 27001 standard, and regulations like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the US. On a global scale, logistics software development should follow international shipment laws and trade regulations such as Authorized Economic Operator (AEO) and Custom Trade Partnership Against Terrorism (CTPAT) .

• The technology should have strong customer service and support.

Just like any other software, supply chain management software also requires proper support and assistance to cater to unexpected issues that might arise. The software provider should offer reliable customer service to ensure that any inquiries or problems are efficiently addressed. This will ensure the smooth running of the business operations.

• The SCM software should include an option for mobile applications.

With the increasing use of smart devices in businesses, having a mobile application for SCM software is crucial in today's world. This will allow managers and employees to access important data and make crucial decisions on the go, thereby enhancing flexibility and efficiency.

Moreover, successful SCM software usually has user-friendly interfaces and comprehensive training resources to ensure quick adoption by all team members. It also offers tools for both strategic supply chain planning and daily operations, enabling supply chain managers to make informed decisions at every level.

By understanding and incorporating these custom software development standards, businesses can select the right technology for their supply chain processes, ensuring improvements in operational efficiency, customer satisfaction, and ultimately, the bottom line. A significant 83% of entrepreneurs believe that to create a customer-centric culture, it is important to recognize the impact of the supply chain on customer experience and the necessity to improve it.

Now that we understand what standards the technical solution for supply chain and logistics should meet, let's explore the logistic software development solutions themselves.

Logistics software development solutions in detail

Managing stock levels

Inventory management tools typically enable synchronized tracking of items across various selling platforms, facilitate the organization of details such as goods availability, pricing, and stock-keeping units, and assist in grouping, reordering, and tracking item conditions (e.g., expiry dates). Development of such a tool requires comprehensive custom software development to ensure that no step in the inventory control process is overlooked, thereby preventing product shortages and shrinkages from impacting the customer experience.

Handling order transactions

Order processing software is designed to create shipments, track packages, update customers on the delivery progress, and provide payment options, including integrations with popular payment platforms. This tool enhances transparency in processes, improves customer experience, and enhances workflow efficiency.

Control over warehousing operations

Warehouse management software is an effective means of saving on transportation costs as it assists in building the most efficient routes for delivering products to the nearest shops or customer locations from the closest warehouses. In this case, logistics software development reduces the delivery wait time significantly for the customer. Additionally, utilizing a management tool to track items transferred between warehouses enables better inventory control, minimizing losses and errors.

Tracking in real-time

The process of item location monitoring is a combination of hardware equipment and custom software development solutions. The first ones send the info on locations and statuses, while the second collects this data and analyzes it. Real-time shows the stakeholders' trustworthiness of the supply chain by making it fully visible and transparent, allowing for easily accessed info on the transferred goods.

Planning and refining routes

Routes optimization in logistics software development involves more than just navigation on a map. The algorithm of the transportation management system must analyze traffic situations, delivery addresses, time and fuel consumption, driver's working hours, truck space, and load types to determine the most efficient routes. In turn, this reduces delivery times and costs, increasing overall efficiency and customer satisfaction.

Documentation automation

Paperwork is still a necessity for many organizations, as not all processes have transitioned to digital platforms. Logistics software development services can automate the creation, archiving, and retrieval of documents, including purchase orders, invoices, packing slips, shipping documents, and more. The software ensures that all necessary documents are easily accessible when required, reducing the time spent searching for lost or misplaced papers. Centralizing all documentation in one system streamlines the process and eliminates the need for physical document storage.

Regulation adherence management

Compliance management software is a valuable tool for monitoring partners in your supply chain to identify risks. Regulations like AEO and CTPAT must be adhered to not only by the supply chain but also by business partners. Therefore, software that monitors compliance and paperwork in this field can be highly beneficial in reducing paper flow and automating the identification of risks.

Cooperation with suppliers

Logistics entail extensive cooperation between various stakeholders such as customers, suppliers, carriers, and managers. It is crucial for these parties to exchange information swiftly to avoid delays caused by miscommunication. Custom software development can streamline these processes by implementing a collaborative dashboard for communication instead of relying on email exchanges, integrating supplier data into the system for real-time access, and establishing an online portal for suppliers to update essential information and view orders and payments directly. A well-implemented cooperation tool within a logistics software solution can greatly enhance supplier relationships, reduce errors, and expedite processes.

Analysis of data

Analytics can provide valuable insights into selling platforms, predict customer demand and risks, report on stock levels, and identify transportation inefficiencies. A unified analytics dashboard can offer a comprehensive view of the overall picture. If you are looking to implement an analytics tool with visualization in your supply chain, we can assist you in achieving this goal as we have a tailored solution for such tasks. You can reach out to our managers directly for further information or learn more about the technology we offer on our website.

Projecting future trends

Forecasting logistics solutions typically leverage AI technology to analyze historical data, track shifts in demand, monitor current market trends, and utilize any relevant information to predict future scenarios. This sophisticated software can predict customer buying behavior, seasonal fluctuations in demand, and even possible delays in the supply chain. It can be programmed to propose optimal solutions and alternatives for unexpected incidents that may occur in the supply chain. The ability to forecast accurately can give businesses a competitive advantage, allowing them to plan effectively and meet customer needs consistently.

Cybersecurity

Given the increasing digitalization of supply chains and the sensitive nature of the data involved, cybersecurity is a critical consideration in logistics software development. Companies need to ensure that all software developments include stringent security measures to protect against data breaches, cyber-attacks, and other potential security risks. This can include encryption, regular security audits, and creating a robust disaster recovery plan.

SCM software: ShipMe parcel delivery app

To offer you a deeper insight into our services in the logistics sector, we would like to present a use case involving the ShipMe application. ShipMe has granted us permission to outline the app's custom software development process as a case study.

ShipMe, a shipping firm based in Saudi Arabia, partnered with Ronas IT to streamline their parcel delivery process using a mobile and web application, creating a digital space for customers and shippers. The main objective of our logistics software development services was to create apps for four distinct roles: customers, individual shippers, corporate shippers, and corporate managers, simplifying and enhancing their interactions throughout the shipping process.

Customers can easily post their shipping requests and monitor the bids from different carriers, selecting the most favorable offer. For individual shippers, the app provides an opportunity to bid for jobs, schedule pickups, and deliver parcels efficiently. Corporate shippers, on the other hand, can only accept orders assigned to them by their respective managers. Moreover, corporate administrators use a separate web dashboard to manage deliveries, respond to applications, and edit company details.

Ronas IT used native languages like Swift for iOS and Kotlin for Android to build the mobile application, adhering to best practices in mobile app development. This included integrating Google Maps for accurate location tracking and Google Play Wallet for secure payment processing.

For corporate administrators, a web version of the logistics management software was created using Angular, enabling them to efficiently monitor and manage the delivery process in real time. The Laravel framework was used for backend development to ensure scalability, security, and efficient data management.

The implementation of the ShipMe app logistics solution has significantly increased the company's market presence, fostered customer loyalty, enhanced operational efficiency, and expanded its customer base. You can study the case in more detail by following this link.

Trends in supply chain and logistics software development services

Among a few trends that are definitely going to stay in supply management and logistics in 2024 is for sure process automation through AI and warehouse management systems enhancement.

Diego Pantoja-Navajas, the vice-president of AWS Supply Chain, believes that the ongoing trend on generative AI will be maintained this year and let entrepreneurs speed up the decision-making process in handling complex scenarios. He also predicts the more effective usage of data made possible with the progress of language-model-powered tools. Which will result in more valuable insights for the industry.

"The future of supply chain management is undoubtedly digital, and those who embrace these changes will lead the way in creating more resilient, efficient, and customer-centric supply chains".

Diego Pantoja-Navajas
09 Jan 2024

As for the warehouse management system, which was named the leading goal of 2024 among the companies, according to the survey, 89% of the companies are planning to modernize their warehouse management. The main tasks that the entrepreneurs are planning to improve are labor management and planning. As Interactive Analysis research form reports, the warehouse automation investments slowed down after the pandemic are going to recover in the upcoming year, and we can expect an increase of 38%.

Conclusion

The implementation of management systems that automate processes in the supply chain and logistics industry is crucial to staying ahead in a digital-driven future. These technologies not only optimize operational efficiency but also facilitate faster decision-making, accurately handle complex scenarios, and enhance customer-centric services.

If you're planning to implement the latest trends like generative AI or warehouse management tools, we can help you with that. Providing expert guidance and robust technological solutions, we are here to assist you in navigating the 2024 landscape of logistics software development, ensuring that your business remains at the forefront of industry. Drop us a line telling us about your project, and we'll work with you to find the most suitable solution to enhance your logistics processes.