SaaS for Logistics: a Guide on Increasing Efficiency with Cloud-Based Automation Solutions

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Key Takeaways

• Logistics SaaS solutions streamline operations, automate tasks, and optimize routes, leading to cost reduction.
• Real-time visibility in supply chain management facilitates improved decision-making, enhances efficiency, and ultimately boosts profitability.
• Acropolium’s clients have reduced operational expenses by 17% by switching from legacy systems to cloud-based logistics SaaS solutions.

Automation and visibility have become synonyms for successful logistics and supply chain operations. Third-party transportation providers and carrier companies utilize digital tools for competitiveness and market adaptability — from logistics SaaS platforms to warehouse and transportation management systems.

As more businesses shift to cloud-based systems, they uncover new opportunities where real-time tracking and data-driven analytics contribute to increased efficiency. While some prefer to operate with off-the-shelf logistics SaaS solutions, other companies go toward custom software development that will bring more value in the long run.

By helping clients deploy and build comprehensive logistics solutions, Acropolium has gained numerous insights on embracing cloud-based systems. Today, we will explore all things SaaS, breaking down the difference between ready-made and tailored solutions.

SaaS Logistics Market Size

The global cloud logistics market was estimated at $17.31 billion in 2022, with an expected compound annual growth rate (CAGR) of 13.3% from 2023 to 2030. The rapid global shift towards cloud-based business practices has catalyzed the digitization of the supply chain sector, propelling market growth.

What is SaaS Logistics Software?

SaaS (Software as a Service) logistics software is a cloud-based system that businesses use to manage and control their logistics operations. One of the most commonly adopted logistics tech trends, this software is hosted on the provider’s servers and accessed via the Internet. That means users do not need to install or maintain it on their own computers or servers.

SaaS logistics software typically includes features for inventory management, warehouse management, transportation management, and supply chain analytics. It can automate order processing, shipping, tracking, and reporting, improving efficiency and reducing operational costs.

Since they’re cloud-based, logistics SaaS applications offer real-time visibility into operations, enabling better decision-making. The most valuable advantages of powering up your business with SaaS logistics management software include:

• Cost-efficiency. SaaS logistics software eliminates the need for businesses to invest in expensive hardware and software. You pay only for what you use, usually on a subscription basis.
• Scalability. As your business expands, SaaS allows you to quickly scale up your operations without significant additional costs or technical challenges.
• Real-time access. Cloud-based applications provide real-time access to data, enhancing planning and response management.
• Manual task automation. SaaS in logistics automates tasks requiring physical entry, increasing efficiency and minimizing errors.
• Smooth, regular updates. The software provider handles updates and maintenance, ensuring consistent access to the latest product features and enhancements.
• Integration. Logistics SaaS software can seamlessly integrate with other systems, providing a unified view of all operations.
• Mobility. With internet access, users can access the system from anywhere, enabling remote work and greater flexibility.
• Security. Providers typically offer robust security measures, including data encryption and secure access protocols to protect your data.

Use Cases of Custom Logistics SaaS Solutions

The cloud-focused digital metamorphosis allows the industry to navigate fluctuations and rapidly evolving demands, enhancing its resilience against supply chain disruptions. Businesses are reorganizing their supply chains into interconnected digital networks, employing affordable, efficient, secure, and scalable solutions that integrate seamlessly with pre-existing systems.

Industry players that focus on sustainable growth and complete customization invest in tailored logistics management systems. Despite implying higher initial costs, custom SaaS solutions offer a greater value in terms of flexibility and long-term ROI.

Let’s explore some of the most common use cases of custom SaaS for the logistics industry.

Workflow Optimization

Custom logistics SaaS solutions allow companies to automate routine tasks, allowing employees to focus on core business activities. For example, Amazon uses custom SaaS solutions to streamline its massive delivery operations.

Customization and Flexibility

Tailored logistics SaaS software provides flexibility by allowing companies to modify and customize the software’s functionality. Companies like DispatchTrack utilize this flexibility to adapt the software to their specific delivery and tracking needs.

Route Planning Capabilities

Carriers can benefit from custom cloud solutions with on-demand access to extensive route planning capabilities. This helps giants like FedEx or UPS avoid substantial capital costs associated with traditional route planning systems.

Reduced Shipping Costs

SaaS supply chain management software solutions help reduce shipping costs, automate core logistics processes, and improve on-time delivery of goods. As a result, companies in the retail sector, like Walmart, gain significant cost optimization from these features.

Improved Accuracy and Scalability

Custom SaaS WMS offers unique-needs-based functionality, improving accuracy, scalability, and flexibility for diverse logistics needs. Companies operating with extensive inventories utilize such software to automate warehousing and manage goods more efficiently.

Features to Consider for Custom Logistics SaaS Software

When considering SaaS logistics software development, the functionality must center around your specific objectives. Once you pick the outsourcing partner, make sure the vendor’s expertise and tech stack align with your goals.

While each tailored platform and solution differs based on the company’s operational focus, there are several irreplaceable features that make the investment work for you.

Real-time visibility and live tracking

This feature provides an instant, up-to-date view of the entire logistics process. It real-time shipment tracking, allowing carriers to monitor performance, and respond quickly to any changes or disruptions. When there’s a delay in delivery, immediate action can be taken to resolve the issue, potentially lowering transit time by nearly 50%.

Route planning and optimization

Route planning and optimization is an essential component of logistics SaaS software solutions, which ensures efficient delivery operations. This feature helps determine the most efficient delivery routes, considering traffic, fuel consumption, and distance variables. It can significantly reduce delivery times and costs, boosting overall operational efficiency.

Inventory management

Effective inventory management helps maintain optimal stock levels, reducing the costs associated with excess stock or stock-outs. Found in most supply chain SaaS solutions, this feature allows businesses to live-track stock levels, automate reordering processes, and predict future stock needs based on historical data.

Order management and fulfillment

This involves monitoring the order lifecycle, from receipt through delivery to the customer. Good logistics SaaS applications will streamline this process, making it faster and more efficient. It will also provide tools for handling returns and exchanges, improving customer satisfaction.

Data-driven reporting

Custom logistics SaaS solutions should provide comprehensive, data-driven reports that offer valuable insights into business operations. As part of document management systems, these reports can help identify trends, highlight areas for improvement, and inform strategic decision-making.

Security and Compliance

Security is a critical concern for any business, meaning your solution should have robust security measures to protect sensitive data. Additionally, your logistics SaaS product should comply with industry standards and regulations, such as GDPR or ISO certifications.

Integration and scalability

The software should seamlessly integrate with other systems used by the business, such as CRM and ERP systems. This way, businesses can ensure a data flow across the entire operations. Moreover, as the company grows, the software should be able to scale up to meet increased demand. This is needed to ensure you won’t outgrow your system as your logistics operations expand.

Custom SaaS Logistics Software Development with Acropolium

Warehouse Management System

During our cooperation with a large 3-PL warehousing provider, Acropolium was asked to implement a comprehensive shift from legacy software to a cloud-based system. The client strived for automation to sharpen their competitive edge in a highly digitized logistics market, requesting a SaaS-based warehouse management system.

Solution

• Acropolium then developed a SaaS logistics system allowing warehouse staff to manage order picking, packing, and shipping, improving data accuracy and reducing fulfillment times with our cloud WMS solution.
• We also enabled real-time visibility across storage facilities for inventory levels, order status, and operations, aiding proactive decision-making for the client.
• Our developers enhanced the product with integration capabilities, allowing the client to integrate other external tools for warehouse management if needed.
• For a smooth transition from the legacy system, we provided a guide on utilizing the warehouse management software for the warehouse staff.

Results

• Accurate inventory tracking and real-time stock visibility minimized shortages and excess stock, improving order processing time by 31%.
• Automation and removing legacy system maintenance costs reduced operational expenses by 17%.
• The company’s 29% increase in warehousing efficiency led to a notable uptick in processed orders within a specified timeframe.

Fleet Management Software

When our client requested SaaS fleet management software, automating route planning was our primary focus. The outdated system required enhancements with GPS-based live tracking, advanced data analytics and reporting, and fuel consumption monitoring.

Solution

• Our team helped the client adopt cloud hosting, eliminating the need for on-premises hardware and offering scalability without the constraints of physical servers.
• We provided a subscription-based model for access to the SaaS TMS fleet management system, allowing clients to predict costs and optimize budgets.
• By utilizing a cloud-based system, the client has automatic access to the latest features, security enhancements, and performance improvements.
• We ensured accessibility from any location, enabling real-time monitoring and providing flexibility for remote access users.
• To ensure scalability, our developers set up the system to accommodate fleet expansion or additional features.

Results

• With route optimization features, the client’s delivery time was slashed by 31%.
• After the successful installation of fuel monitoring sensors, the consumption level decreased by 14%,
• The customer satisfaction scores soared by 28% due to overall usability, which also led to enhancements in driver behavior and safety.

Final Thoughts

With highly digitalized and ever-evolving supply chains, logistics SaaS solutions are the linchpin for efficiency, transparency, and adaptability. Offering real-time insights, streamlined operations, and enhanced connectivity, they help businesses remain competitive in modern logistics.

Embracing Logistics SaaS is a strategic imperative to remain agile and responsive, and Acropolium is here to make this journey smooth for you. As an ISO-certified provider crafting GDPR-compliant software, we have been trusted with inventory, route planning, transportation, and supply chain management systems.

Whether you require system modernization or software from scratch, we’ve got you covered with subscription-based services where your goals and budget are priorities. Let’s spark up your operational efficiency!

Sources of Information

• Cloud Logistics Market Report 2023 — Grand View Research
• Global Logistics Industry Report 2023 — Benchmark International