How Logistics Software for Small Business Saves Money

Logistics software for small businesses. How does it help?

We live in a digital world.

So, why are so many businesses still stuck in the 19th century? Why do they still insist on manually processing business transactions and operations when logistics software does it better, faster, and cheaper? Many small businesses have already entered the 21st century using special logistics management software to optimize their daily business life.

There is a reason for this: logistics software really helps. Here is how…

Small business logistics – what is it?

Logistics usually means transportation and freight companies, warehouses, retailers and brokers, and production—factories and manufacturers.

All these companies need logistics for their business process.

Any company that moves and/or stores goods, services, or information in a supply chain or from the point of origin to consumption point is called a logistics company.

This means that many processes in this company may be optimized with logistics software.

“Logistic software for small business – Is it a rational investment of money?”

This is a managing director’s first question when finding ways to cut company expenses.

“Logistics software – doesn’t it complicate things?”

A question asked by any manager accustomed to controlling everything personally, to make sure everything goes right.

Here’s one example to find answers to those questions.

Imagine two transportation companies: Peter owns one; Steven owns the other. Peter’s company is still using paper and a manual approach to manage all processes. Steven’s company switched to a special logistics management software to handle all company operations.

Both companies want to become a long-term freight partner for Thom, a medical equipment supplier. Thom has large valuable clients in several cities of the country. His equipment is expensive and fragile. Thom is looking for a reliable freight company to safely deliver his products and in time.

Thom has worked with both Peter`s and Steven`s companies before, so he knows their level of services. To make his choice, Thom has put together the following table:

I guess you can answer the last question in the table yourself.

From the table, we see that the special logistics management software puts Steven`s company a step ahead of his competitors. Thanks to this software, Steven’s company provides a higher-quality service and also reduces the company`s expenses and keeps the price very competitive.

This is what usually happens when a company automates its logistics processes. How is all this possible? Let us review each feature mentioned in the table above!

Logistics for small business – popular (and cost-saving!) features

From the example, we see that Steven’s company has integrated logistics in business by automating some major operations. Those logistics improvements are the following:

Automatic truck-load planning – Transportation companies often face LTL (or “less than truckload”) problem. This means there are not enough items to load a whole truck. This is a problem. Truck charges remain the same regardless of the load.

Logistics management software could solve this problem in several ways:

• Reschedule delivery for a later date, so that more items can be added to the load.

• Combine multiple orders for the same route.

• Find business partners interested in same-route delivery—sharing truck costs.

When long destinations have several delivery points, logistics software plans the load based on a last-in, first-out (LIFO) algorithm. This ensures that items for the nearest delivery point are loaded last to save time when offloading.

Automatic route planning – Logistics software automatically lays out optimal delivery routes taking all relevant factors into consideration. Such factors include lost time traffic jams, fuel consumption rate, and average speed. Integrated with online services like Google maps, it adjusts the route on the go depending on the actual road situation.

One software system combines management for supply, production, warehouse, and transportation. A single software program integrates all the business processes. It optimizes interaction between company departments and reduces workloads for all involved parties.

QR codes for load and delivery – When many items are loaded at the same time into several trucks, simple mistakes might happen and destination points are mixed up. Putting a QR code on each unit package gives the freight handler all necessary information. This reduces mistakes and optimizes the whole load process.

QR codes are also a good solution for warehouses. You can create a placement map for the warehouse showing places reserved for each item or an item type. You can then integrate this map with the QR codes. At the time of onload and offload, all the necessary info on each product is available.

Delivery status updates – Logistics software sends notifications on product location during the transportation process in three ways:

• Product QR code is scanned during load and offload.
• Notification is sent by a manager with a simple tap.
• Notification is sent automatically when certain GPS coordinates are detected.

Planning equipment maintenance – Your logistics management software can include a special module to handle equipment maintenance and repair. This module schedules planned equipment inspections to detect problems and avoid major breakdowns before they happen on the road. The software can also help with repair. When a certain piece of equipment malfunctions, it is possible to scan its QR code and get instructions on how to carry out the repair.

If you prefer, it can even contact a maintenance team that then gets a special notification from you.

Specialized logistics software for small business simplifies and streamlines a company’s business processes. This makes the whole logistics
cycle
quicker, more precise, and more accurate.

Best off-the-shelf logistics software for
small business

The right choice of logistics software for small business depends on your business type and your special requirements. Some businesses are fine using pre-made, off-the-shelf software. Others implement custom-built solutions. It all depends on business processes and capabilities.

It is worth noting that even pre-made logistics software needs adjustment and integrations with other software a company already uses.

The list below will give you a bigger picture on available logistics software for small business and help you decide whether this is what your business needs.

Shippo

Shippo
provides a dashboard  and an API for a simplified order and shipment management. For it, merchants can create shipment labels, easily synchronize order and tracking information,
validate address, and more. They benefit from different options, e.g., partial fulfillment and global delivery.

Users can compare carrier rates. Additionally, Shippo promises best shipment rates from major carriers such as USPS, DHL, and UPS.

Shippo is available as a SaaS product; no installation is required. Hippo API can be integrated to a merchant’s system for process automation.

Shippo drawbacks? Lack of mobile apps and an unresponsive support team.

Both free and free-trial versions are available.

Zoho Creator

Zoho Creator platform lets businesses flexibly manage shipments, vehicles, and drivers. Users can create their own custom forms, configure workflows to automate different processes, and more.
Users can clean and normalize data and build comprehensive reports. They can access data from any location.

Zoho Creator is available through all major platforms: online as SaaS, desktop software, and mobile apps. Hence, offline access is granted. It can be integrated with different third-party
solutions to ensure smooth data exchange.

Users are encouraged to build their own Zoho apps.

Zoho Crator offers its users free version and trial period.
The price is formed per user per month.

Zoho drawback? Scaling can be expensive.

ArcGIS

When it comes to mapping and location intelligence, ArcGIS is an industry leader. It can be used for asset tracking and driver management helping with optimize routes and workflows. It also
makes it possible to coordinate field teams.

Comprehensive analytics system and data visualization tools are available.

Users can creating mapping and location intelligence solutions.
Software is available as a Web-based service, Windows desktop software, and mobile apps.

ArcGIS drawback? It has a steep learning curve. Prior training
is practical for making the best use of available functionality.

ShipStation

This product has been designed to simplify multi-channel sales, via different marketplace platforms. Users can import order from different channels, apply preset options, and create labels.
ShipStation automatically transmits shipment information and tracking numbers to the required channels. The app also provides detailed reports, various order types, and permission levels for
different user groups.

ShipStation provides feature-rich functionality to track inventory, suppliers, shipping, order delivery, and more.

Web, desktop, and mobile apps are available.

Drawbacks with ShipStation? Users note that it is hard to find and verify errors when they occur.

AscendTMS

AscendTMS is a supply chain management software for easy freight management. Users can retrieve essential information via dashboard such as order tracking, delivery dates, and even
real-time carrier location. They can manage payments and analyze profitability.

AscendTMS targets customers of any sizes, from small businesses to enterprises. Constant updates are a part of company’s routine.

Pricing depends on the number of features. Users benefit from both free software and a free-trial period.

AscendTMS is available as a Web app and as mobile apps on both Android and iOS.

AscendsTMS drawbacks? Often website lags causing problems for businesses and mobile apps not quite suited to complex activities.

MyRouteOnline

MyRouteOnline
imports data from Excel tables, Text, CSV to its system and creates a route plan fast. Users can create an unlimited number of routes and optimize them based on different
criteria. They can save routes in the system, export them to Excel or send to the mobile app for navigation. Software provides fuel management and mileage tracking options.

The software is offered as a cloud service plus mobile apps.

MyRouteOnline provides API integration ensuring users benefit from Multi-Stop Routing and Mapping features. Also, different navigation services can be integrated to MyRouteOnline
smartphone app.

MyRouteOnline provides five different pricing plans. There is a free trial. No free version available.

Drawbacks include possible issues with adding addresses mapping systems do not recognize or optimizing the route after a new address was added.

OptimoRoute

This software helps logistics companies schedule deliveries and plan optimal routes. The program imports orders and calculates schedule. Program algorithm factors in working hours to avoid
overtimes. It selects vehicles specifically to balance loads. Routes are tracked in real time. They can be modified when needed. Companies instantly receive proof of delivery.

Detailed analytics and reports are accessible from dashboard. Different mapping solutions can be integrated easily.

Users can use a Web-based solution or download a mobile app. OptimoRoute provides API to help logistics company integrate their solution into their own system.

There is no free plan but it does offer a 30-day trial.

Among drawbacks, users mention issues with tracking drivers and switching orders from one driver to another. Also, users cannot avoid tolls automatically when planning a route.

3PL Warehouse Manager

3PL Warehouse Manager is an extensive platform aimed at optimizing warehouse operations. The system provides a simple, intuitively clear management workflow. Software features help
create multiple billing workflows, shorten order cycle via improved inventory tracking, send automated notifications, etc. Users can easily add, process, and remove both items and customers. 3PL Warehouse Manager provides integrations with essential warehouse management technologies.

3PL Warehouse Manager is available as a cloud solution. No free app, no free trial. Demo is provided upon request.

Among the 3PL Warehouse Manager drawbacks? Customer support team’s reaction might be slow. Customization might present challenges.

Logitude World

Logitude World ensures hassle-free freight forwarding management for companies of different sizes. Software functionality supports the entire freight forwarding lifecycle. Logitude World covers such aspects as documentation, costs and profit analysis, invoicing, quotes adjustment, and more. Everything needed to build and maintain a robust digital system is available across software modules. Users benefit from templates, timely notifications, and extensive logs.

Both free version and free trial are available. Pricing depends on the number of modules a business accesses.

Software is available as a SaaS, desktop programs, and mobile apps.

As Longitude World’s drawbacks, users notice unresponsive support and possible issues when integrating with big CRMs such as Salesforce and Microsoft Dynamics.

Kuebix TMS

Kuebix TMS is a modular transportation management system designed to meet requirements of companies of all sizes. Using Kuebix TMS, companies can create different shipment rates, negotiate on shipments, book, and manage them. The app consolidates and combines orders to optimize route and vehicle loads. Companies can track shipments in real time via Trimble
Visibility module. Automated scheduling of inbound and outbound shipments is also possible.

Analytics system accumulates and makes sense of the data.

Kuebix TMS has a free version and free trials for paid plans.

The app is available as a SaaS, and as on-premise solutions for Windows/Linux. API is also available. Mobile apps are not.

Software drawback: UX could be more user friendly.

For more reviews from real clients, check Capterra, G2, and Softwareadvice.

Logistics for small business – main benefits

As you can see from the examples above, small business logistics solutions bring some major improvements to a company’s daily operations. In general, it is possible to describe those changes below:

• Automation of manual processes

  Is your office buried under papers? Are your employees manually inputting details for each freight or product item?

  Yes? Then learning about this special software is a life saver.

  Logistics software for small business can handle complex
  analytical tasks, including:

  • choosing the appropriate driver or truck for a
    delivery
  • planning the optimal route based on several factors
  • providing algorithms for a truck or warehouse load

  When done manually, all those processes take much longer.

• • Eliminating human errors

    Automating analytical tasks and calculations prevents
    possible—and probable—human error. From calculating
    discounts for a wholesale customer to estimating weight
    load
    for the next truck, this software has you covered.

  • Proper planning and execution

    Logistics software streamlines business processes and
    ensures
    timely execution. For it, users get tools for precise
    automated calculations, analytics, and control of
    operations.

  • Data security

    Now all your business data is stored electronically in
    encrypted format. No more damaged, lost, or stolen
    documents! Informational technologies give you a means
    to
    keep your business data separate from physical
    repository
    and all your business information is secure.

  • Improvement of customer service

    A logical consequence of all the small business logistics
    factors listed above results in improved customer
    service.
    Timely and high-quality service makes customers happy!
    Happy
    customers become your permanent customers and recommend
    you
    to other interested, potential customers. This results
    in an
    uptick in your business. And that makes you happy.

• How to choose logistics software for your
  business?

  The list of possible logistics solutions is lengthy. Little wonder
  because company requirements vary greatly. What works for other
  businesses in your niche, might not work for you at all.

  Take your time to evaluate available logistics solutions before you
  start implementation.

  The following points could help you choose the best software for your
  business:

  • Identify your needs

    Think it through.

    • What parts of your supply chain do you need to improve with
      software (e.g., shorten delivery time).
    • How will software improve your business (e.g., build optimal
      routes automatically without human intervention).
    • Who is going to benefit from using the software (drivers,
      warehouse managers, etc.).
    • How many users will there be in the system?
    • What kind of reports and analytics will you need.

    Answering the above will help you determine on core and
    nice-to-have features. Once those are established, you can start
    looking for a relevant pricing plan.

  • Set up your priorities list

    Writing down your list of priorities helps you set up the right
    expectation from logistics software.

    Decide what is absolutely crucial for you:

    • Staff training from a vendor’s team?
    • 24/7 live support?
    • 99.9% uptime?
    • Availability of a mobile app?
    • Ease of API integration and data transfer?
    • Subscription fee?

    No software is perfect. These questions help choose the most
    suited and eliminate disappointment.

  • Think of growth directions

    Once you have adapted your business to an out-of-the-box software
    solution, it will cost you time, money, and nerves to switch to
    another one. The number of errors and processing time might
    increase when employees work with an unfamiliar user interface.

    So, if the software works perfectly now, will it be equally
    great in a year? In five years? Does software support fast
    scaling?

    If not, you might need to look for a different option.

  • Make your own list of prospective 3 – 5 solutions

    Make your own list of best logistics software. Check reviews,
    study functionality, and see how well it solves your problems.

    Prioritize your list and test drive software to collect your own
    impressions.

  • Complete a real task using each solution or simulate one

    Fortunately, many software solutions either offer free plans or
    free trials.

    Sign in and start your free plan or a free trial. Simulate your
    entire workflow to see how software feature list covers your
    operations. Check whether the path is intuitively clear and can
    quickly be adjusted to your needs. Note down timeline, benefits,
    and drawbacks.

    Not sure how a feature works? If you can’t, your employees won’t
    be able to either. Ask for help from customer success team. Move
    to the next title on the list if you get no proper response.

  • Evaluate the results and pick up your top choice

    Provide each software solution with points from one to five based
    on your notes and impressions. Go through the list of your needs
    and priorities once again to ensure what you get is what you
    need.

  
  Important note.

  Important note. Remain
  open minded and
  flexible. Make sure you can switch to another logistics
  software if the current one no longer supports your growth
  needs, becomes too expensive, or stops delivering quality.

• Custom logistics software vs. pre-made
  packages. Which is better?

  All logistics software are aimed at optimizing logistics for small
  business.

  Businesses can opt for pre-made logistics solutions in the market
  offered as SaaS—software as a service—as discussed above. A company gets
  access to the software that includes predefined, pre-selected modules.
  The set monthly/annual price depends on what the company chooses.

  This solution has definite advantages (lower price) and some
  disadvantages (necessity to adjust company processes to the steps
  hardcoded in the software).

  Another option is a custom logistics solution designed for your company.
  It might seem such solutions cost more than SaaS, but it deserves close
  attention for a long-term solution.

  A great advantage of a custom solution is that it is tailored to your
  company processes. It takes your specific company needs into account.
  Employees find the UI easy to use.

  With custom software, you get the application and a team that supports
  your software on the go. A team ready and able to adjust the application
  anytime your business process changes or grows.

  At IT Craft, our development team provides similar long-term service for
  several clients in the
  USA. We speak from experience.

  Do you think some of the features described above could help you run
  your business more smoothly? More efficiently? Do you want to save time,
  money—and hassle? Do you want more satisfied clients?