How to Develop ERP Software for the Logistics Management: Complete Guide

ERP software for the logistics industry requires time, investment, and in-depth business expertise. Still, building and maintaining an effective ERP system is challenging: 75% of ERP transformation projects experience fractured deadlines or cost overruns, and 67% result in a negative ROI. A solution exists: use an Agile approach. Check out below how you can build a profitable ERP system in logistics with its help.

Analyze Needs: Any project cooperation starts a project by documenting existing processes and identifying bottlenecks — both will serve defining goals of the future logistics EPR project.

Gather Requirements: The vendor’s specialists collect input information from end users and stakeholders about their needs across the logistics company’s departments, such as finance/accounting, warehousing, or operations.

Define Scope: Specialists compose an essential feature list for ERP modules including transportation, CRM, reports, analytics, and so on while assessing required work on front- and backend development, and integrations.

Build the Team: The service provider assembles a project team based on scope and requirements, adding necessary specialists that can be a PM, BAs, UI/UX designer, web or mobile developers, QA engineers, and DevOps specialists.

System Architecture: The lead experts outline scalable and expandable system architecture, which can be on-premises, hybrid, or cloud-native. A module approach is preferred to building logistics ERP systems.

Database Design: They also plan a complex database structure to efficiently index and handle massive amounts of heterogeneous data entries logistics businesses operate on a daily basis.

Module Design: UX/UI designers create user flows, layouts for screens, and interfaces for the required functions — these can be order tracking, inventory levels, analytics dashboards, and more — ensuring efficient user navigation.

Agile Development: The project team develops ERP modules that are outlined in the project plan, which can be warehousing, order tracking, finance, or transportation.

Core Features: Developers implement features within a module in order of their priority for your logistics business, adding automation and data analytics on the go. 

Integrations: Next, they connect the new modules or functionality to the rest of your digital logistics system with the help of APIs to ensure security and high performance.

QA: QA engineers run manual and automated tests; performance, security, regression, and functional testing are among them to ensure that produced ERP modules are well-adjusted to logistics processes.

Data Migration: The project team carefully transfers user data from legacy systems to the new ERP solution, ensuring its integrity and uninterrupted logistics operations.

Training: A reliable service provider offers employee training to ensure end users understand the new functionality and embrace improvements in their workflow.

Go-Live: The project team deploys new ERP features and modules on the production server and provides immediate assistance in eliminating any discovered flaws.

Monitor & Enhance: DevOps and maintenance specialists are responsible for continuous monitoring and feedback, while the project team focuses on fixing bugs and expanding ERP software based on evolving logistics operations. 

Optimization: The project team can also work on optimizing both the logistics software codebase and infrastructure to minimize waste of resources and associated costs.

IT Craft is a strong service provider with 25 years of expertise in rendering custom logistics software development services for complex business needs. It boasts successful deliveries of various functionality, including warehousing, transportation, order tracking, supply chain management, and more, also offering end-to-end ERP solutions to its clients.

A proactive, business-focused approach to building custom ERP software for logistics is one of IT Craft’s key strengths. The company’s clients highlight its efficiency in meeting the most complex project requirements, while IT Craft engineers bring transparency, flexibility, and missing domain expertise to a project. 

Services & expertise: custom logistics ERP solutions, ERP software audit and consulting, modernization and maintenance of legacy ERP logistics systems, data migration and third-party integrations, API development, cloud-native ERP solution development and optimization. 

Technology stack: React, Angular, Redux, Next.js, Kotlin, Swift, React Native, Spring, .NET, Node.js, Flutter, Laravel, Flask, Kubernetes, OpenStack, Jenkins, Google Maps, Esri, Waze, TeamCity, Ansible, Terraform, AWS, Azure, GCP, DigitalOcean.

Team size: 330+ experts.

Transportation Management System Development for MyCarrier

MyCarrier envisioned a transparent TMS system that would enable carriers and their customers to negotiate costs and manage shipments efficiently in one place. 

IT Craft developers launched the product MVP on time, meeting the client’s quality expectations. Our development team focused on project expansion, transformation, and maintenance to help the client cope with rapidly growing user interest. 

Results:

• scalable web platform with capabilities for quick user onboarding
• raising $36.8M in funding
• being named the leading TMS software by G2

Read Case Study

Custom CRM Development for eLaundry

Elaundry required finalization and launch of its custom-built, logistics-focused CRM system for managing laundry orders. Initially designed to serve individuals, the client pivoted to business customers after several years of operations, which triggered the project transformation.

IT Craft programmers enhanced and delivered a solution that significantly automates laundry order processing, including order pickup scheduling, price calculation, payments, and more. They transformed the solution to adjust it to evolving business goals.

Results: 

• Delivering a scalable CRM solution that ensures efficient and cost-effective deliveries
• Designing a stand-alone app for drivers that provides them with the most efficient routes and time-saving schedules
• Building business intelligence dashboards tracking 100+ operational metrics

Read Case Study

Erbis is on the list for its deep expertise in building complex ERP solutions for logistics, with some of the partnerships lasting over a decade. The Erbis engineers deeply understand logistics-specific workflows and deliver custom solutions for unique needs that they seamlessly integrate with clients’ platforms.

The company is renowned for its flexible cooperation terms and a wide technology stack that enables its developers to ensure quick deliveries of the envisaged functionality and a prolonged value of the systems they engineer. This agency invests in business alignment and process transparency to justify the pricing policy. 

Services & expertise: supply chain system development, digital transformation and automation, legacy system support and modernization, logistics development consulting, AI and ML integrations, software maintenance. 

Technology stack: Spring, .NET, Angular, React, TypeScript, PostgreSQL, Elasticsearch, AWS, GCP, Azure, Docker, Kubernetes, RESTful API, OAuth, TensorFlow, SebSockets, Swift, Kotlin. 

Team size: 75+ experts. 

Top clients: FIND, Hoste, PhishFirewall.

Proficiency in custom software development for enterprise companies is one of Dreamix’s strongest sides, as the company’s programmers can efficiently develop solutions for complex logistics workflows. Dreamix developers can build and deliver core logistics functionality and tailor it to unique business processes. 

The clients note the company’s capabilities in solving intricate technological problems and its deep technological expertise. Exceptional working culture is another notable point that allows Dreamix to make solid contributions to its clients’ success stories. 

Services & expertise: route visualization and calculation solutions, custom management modules, GPS tracking, customized shipment modules, software modernization, API integration, MVP development, DevOps, cloud development. 

Tech stack: Angular, React, TypeScript, Java, Python, .NET, Node.js, Prometheus, Grafana, ELK stack, Kubernetes, AWS, Azure, GCP, RESTful API, Webhooks, Pandas, NumPy, Scikit, TensorFlow. 

Team size: 285+ experts. 

Top clients: Icelandair, StoryMD, Barton Malow, PowerDrone, Seneca Advisory

A small, boutique firm, Adexin specializes in AI-powered logistics and ERP solutions, backing its industry expertise with a long list of former and current clients. The company is capable of delivering solutions for various needs, integrating cutting-edge technologies, such as AI automation and predictive analytics.

The company offers Adexin Tools Framework as one of its competitive advantages, which is a reusable codebase that allows clients to decrease time to market of an MVP. Moreover, the company’s engineers leverage cloud-based, flexible solutions to help clients quickly adjust to changing business environments.

Services & expertise: custom logistics software development, AI-powered solutions development, MVP development, CRM development, cloud-based solutions, CTO-as-a-service, IT consulting, digital transformation. 

Technology stack: Mapbox, Google Maps, OSM, Here, Esri, Navigine, Node.js, Jest, React, Angular, Tailwind, Three.js, React Native, Flutter, Swift, Kotlin, AWS, Lambda, CloudWatch, OpenCV, PyTorch, OpenMMLab, OpenVINO.

Team size: 15+ experts. 

Top clients: Hailer, Altoros, S1SEVEN, ITS Astra, Tribe.Red.

SparkBiz offers a strong value for money with its cost-efficient ERP software development services, while the company’s specialists are capable of delivering and maintaining high-quality solutions, managing client expectations for reliable and flexible services. 

The company focuses on domain-driven architecture design and commitment to project success, while its developers are dedicated to understanding client needs. It has completed ISO:9001, CMMI Level 3, and SOC 2 certifications, which are crucial for ensuring reliability and compliance on client projects. 

Services & expertise: custom software development, digital transformation, mobile app development, AI and ML development, Low-Code and No-code development, MVP development, software integration services.

Tech stack: React, Angular, Vue, Tailwind, React Native, Kotlin, Swift, Flutter, Python, Node.js, .NET, Laravel, Nest.js, Golang, AWS, GCP, Azure.

Team size: 400+ experts.

Top clients: SubQDocs, Dyshez, Twindo, TripMate, Green Selects.

A logistics management platform maintains effective processes by supporting different elements of a supply chain, e.g., warehousing, fleet, route management.

Different implementations exist. Businesses can:

In each case, estimated implementation costs of an ERP system are not the only factor. In logistics, flexibility and time for changes matter. 

Companies that regularly adjust their system to changing needs and progressing technologies provide customers with fast and transparent deliveries—the key point for a company achieving top of the charts.

By using a relevant ERP solution, businesses benefit the most from streamlined processes:

• Resources optimization. Regular optimization enables obtaining the best effectiveness while reallocating saved resources for business growth, e.g., delivering new functionality.
• Automation at scale. The development team shifts routine manual operations (e.g., billing) to machine automation where possible. It saves hundreds of working hours and cuts out the human error problem.
• Increased transparency. Quality and timing become predictable. Users enjoy real-time monitoring and prompt updates.
• Improved workflow. Employees’ efficiency increases. Collaboration between departments improves.
• High security. The engineering team regularly assesses security risks and vulnerabilities, delivering enhancements to discovered weaknesses. Valuable data is safe.

The following features increase the bottom line of ERP software for logistics:

• Delivery updates. The software sends notifications to customers as soon as it automatically detects changes or company workers update information.
• Route planner. The system determines the optimum path depending on the truckload and the number of stops. It ensures the best fuel consumption and working hours.
• Custom calculators. Custom, adjustable calculators are required when a company pursues a flexible yet transparent pricing policy.
• Documents and templates. A large base of available templates is used to generate documents, receipts, billing, etc., simplifying workload.
• Insights and analytics. The development team defines the functionality needed to make sense of a business’s daily data.
• Access management. Access management is critical for fast response to role changes. Only authorized employees access the information they need for work.

An ERP platform has become one of the most valuable assets in the constantly digitalized world.

As a business, whatever path you choose, you need:

Every change in an ERP system is challenging. You need to be flexible with your goals and priorities. You need to use Agile to be agile.

Make the use of value-driven development and an iterative approach to deliveries a part of your initial plan. Engage top experts in logistics development who know how to apply Agile practices to your processes. This way, you ensure the delivery of relevant functionality faster and with improved quality