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May 29, 2021 | 12:05

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If just a couple years ago, it was enough to outline the cargo route from point A to point B to ensure delivery, then now everything has become much more complicated. The logistics face with huge data massive, and without well worked out a transportation management system, it’s impossible to provide successful delivery. 

Transport logistics software has become an indefeasible part of supply management. In essence, this is a set of tools that allows suppliers, carriers, and customers to automate logistics processes, reduce transportation costs, and save time. Someone order TMS for their business and others are interested in creating a transportation management software.

In the article, we will introduce the best transportation management custom solutions for logistics and outline the features and benefits of implementing innovative TMS for your business.

Introduction to TMS: How to Make Logistics Smart?

Transportation Management System

From a technical point of view, the Transportation Management System is a software product for the complex solution of tasks in the automation of transport logistics. It’s used as an order management system. 

From the point of business, transport, and logistics management software solve the problem of automating the delivery of material items or services from the source of production to the consumer of products or services and also forms optimal routes.

Developers can create a transportation management software of different types and with different options. Typically, transportation and logistic management software can include several modules, such as:

  • Warehouse Management System (WMS)
  • Enterprise Resource Planning System (ERP)
  • Supply Chain Management System (SCM) and others.
  • Briefly, the next steps in logistics management system development must be focused on defining the business goals and analyzing the company’s specific needs for choosing the best custom software solution.

    Steps to Build Custom Transportation Management System

    On the one hand, there are a lot of ready software solutions for logistics management. On the other hand, logistics companies often require custom transportation management solutions for achieving their strategic goals. It is essential to analyze all company’s needs before starting the development process, as it will influence the next steps in creating TMS. Next, we will point out the basic steps in building custom management software for the transportation business.

    Choose a Provider

    It is critical to start the transportation management software development with a decent provider. You need to pay attention if the service has an open architecture design and the possibility to integrate with multiple services. Also, it is vital to have a high level of service data protection. At the same time, many companies can have unique requirements for a provider, and it must be considered in logistics management software development stage.

    Choose Between Cloud and on-premises Transportation Management

    Using cloud-based TMS assumes flexibility and saving money for the company. At the same time, on-premise systems used to be installed on company servers, making them reliable and secure tools for transportation software development. Nevertheless, nowadays, even companies that use on-premises systems implement SaaS and cloud applications to achieve business aims efficiently. 

    There is one critical difference between web-based and on-premises solutions. The on-premises solution deployed in-house, and the company became responsible for maintaining this software. When you develop cloud-based transportation management software, resources are hosted on the service provider side, but the logistics company can still get the assets to the data at any time. 

    Any cloud system has one excellent property: the amount of information contained is unlimited. The system will store as much data as the business needs. The second reason to build a transport management system on a cloud basis is reliable protection from any failures. Any virus threats and hacker attacks are impossible for the system. As for on-prem TMS solutions, it requires the purchase of server hardware, a license, and TMS integration with enterprise workflows.

    At the same time, many companies need an extra level of security. In this case, using an on-premises system to build software for transportation management can be more dependable for data safety. 

    Decide on Transportation Management Software Functionality

    Custom transportation management software solutions are usually multifunctional and consist of essential functions and some additional features. When deciding what procedures you need to implement into your software, it is better to start with an in-depth analysis of possible users’ needs. 

    There are few essential features from the freight forwarder view that can help develop the final software product:

  • Specify cargo details. The user will add such additional information as weight, type of goods, route details, or specific documentation.
  • Route checking. The ability to check in real-time all possible routes for the vehicle in a defined radius.
  • Historical data. The ability to use all the data for accurate analysis of the next steps.
  • Contacts. This feature will make direct communication with customers easier.
  • Also, let’s examine some critical features from a carrier view:

  • Tracking location on a map in real-time.
  • Checking fees and documents. The carrier needs to check all the documents before the trip and have them all in one place when needed.
  • Calculating the cost. This function uses historical data to make an accurate calculation of transportation.
  • Easy contact. The carrier often needs to contact the forwarder during the trip, and this function can make this communication more efficient.
  • Build a Mobile Version

    Cloud-based software is easily accessed with mobile. For flexibility of the system, the company needs to have a mobile version of the management solution. It became easier to access the information during the road trip. The mobile app can also send a real-time notification that there are any changes in the system. Moreover, transportation management application development will simplify the communication between administrators, forwarders, carriers, and clients.As for on-prem TMS solutions, it requires the purchase of server hardware, a license, and TMS integration with enterprise workflows.

    Benefits of Automated Transportation Management

    A study by the ARC Advisory group showed that building a logistic management system brings companies at least 8% savings. Besides, such systems fulfill one of the main requirements of customers – transport transparency.

    At the same time, storing all the data in one place allows you to quickly, easily, and optimally schedule and track the movement of goods in real-time.

    High-quality logistic software development gives the transportation software development company the following benefits, helping:

  • Simplify processes: for example, many TMS can automatically choose a transport company based on the type of cargo, route, and experience of cooperation.
  • Track cargo: in addition to traditional GPS tracking, the system helps optimize the route of transportation or rebuild it due to unforeseen circumstances.
  • Collect data in one place: if the company controls 20 points, each of which sends five goods per week, this means that it has to generate 100 sets of documents every week.
  • TMS automatically prepares shipping documents and reports, analyzes data, and helps identify errors and inconsistencies.
  • Also significant is the fundamental possibility of updating the system without the excessive investment in the event of an increase in turnover, improvements in the supply chain, or other changes.

     AMCONSOFT Solutions’ Experience in TMS Consulting

    Before the initial implementation of TMS to your business our team suggests consulting services for transportation companies. How we can help when running the consulting services:

  • Applying tech unity on the transport and warehouse processes
  • Implementing manual planning and routine algorithms
  • Cost reducing and spends optimization on transport
  • Documentation flow optimization
  • Transportation department work optimization
  • We at AMCONSOFT already helped customers with the operations of three separate business units which reduced man-hours by 30%, grew revenues by 38% and increased profits by 68%. Check the presentation with the core supply chain consulting services we offer, or contact us to talk with the supply chain expert.

    Read more: How to Hire Supply Chain Management Business Consultant?

    What Should You Know Before to Make Transportation Logistics Software?

    Transportation Logistics Software

    As a rule, the transportation software development services cost is calculated based on the duration of the project. After discussing your business idea and determining the necessary functionality, the project manager calculates how many working hours the project will take.

    The developer will consider the creation of UI/UX design, frontend and backend development, and testing. Then, based on the hourly rate, the cost of the product is calculated.

    A professional developer can say that create a shipping logistics software will cost about $ 200,000. However, you have to understand that the price may vary depending on the functionality required for your business.

    Take note of these few criteria. They will help you choose a system for the right solution or constructively make a transportation software:

  • Cloud computing is gaining popularity. It allows participants in the supply chain to more quickly gain access to processes and better synchronizes data, and work with freight transportation becomes much more transparent.
  • The system must be flexible. When choosing a TMS-system, it is essential to understand whether the developers are ready to adapt it to the tasks of the company. It is also worth making sure that the developers will continuously maintain and improve the product.
  • The competence of employees as one of the priorities. TMS systems must understand not only their product but also understand the client’s business processes. The misunderstanding between developers and logisticians during the collaboration is just as dangerous as at the start.
  • Pay attention to the timing. Implementing a TMS system is a time consuming and time-consuming process. At first glance, it might seem that the sooner a new solution works, the better for the company. The optimal time to implement systems is 5-7 months.
  • Recently, operating costs for transportation software development have dropped significantly, so more and more companies are ready to implement automated transport management systems in their supply chain. In any case, developing TMS from scratch allows you to create a product that matches your business’s needs. 

    Read also: Predictive analytics in supply chain execution

    Building transportation logistics software will cost the company from $10 000 to $250 000. The final budget will depend on many factors, such as the number of vehicles, specific functions, or a definite level of data protection. At the same time, you need to remember that it is possible to define the final cost of creating transportation and logistics management software only after the in-depth analysis of business needs, goals, and specifics. 

    Tags

    #Logistic#Transportation
    Views: 2224

    Written by:

    Alina Plotnitskaya

    Chief Innovation Officer (CINO)/Product management, help to create startups from the idea to final release, addicted to inspiring ideas and great products.

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