How Do I Choose A Logistics Software Provider?

Logistics software provider

You’re good at what you do, which is why you do it. Yet, it doesn’t change the fact that logistics is a complex industry.

A dynamic sector that serves as a backbone for global commerce. Its adaptability and ability to meet evolving customer demands are crucial for businesses to thrive in an increasingly interconnected world. 

Yet, that raises an issue for logistic leaders who need specialised software to stay up to date with these demands. The problem is developing and maintaining software can divert a logistics company’s attention and resources away from its core business operations, potentially leading to inefficiencies and a loss of focus.

Why is Having a Software Provider Important?

Before we help you determine how to choose the right software provider for your business, let’s quickly recap why this is important for your business:

The competition is tough. There’s a lot of it, and it’s not going away. By leveraging software solutions, your logistics company can enhance its capabilities, provide better services, and stay unwaveringly competitive in the dynamic logistics industry.

In a digital age, where customer demands evolve rapidly, adopting the right software can streamline operations, reduce costs, improve decision-making, and boost efficiency.

Furthermore, it can enhance customer satisfaction, ensuring your business remains at the forefront of the logistics sector driving growth and profitability. 

Clearly, choosing the right software provider is pivotal in achieving these objectives, as it affects your logistics operations’ functionality, scalability, and long-term success. Make an informed decision to future-proof your business by reading below: 

Custom Software Provider Vs. In-House: What’s the difference?

Whether you choose an external software provider or an in-house team depends on your business’s specific needs, goals, and resources. We often see logistics companies opt for external providers when they require specialised expertise that can increase overall cost-effectiveness and gain faster development. 

In contrast, some logistics businesses prefer in-house teams for projects where direct control and company-specific knowledge are paramount. 

Why Choose a Custom Software Provider 

The choice ultimately depends on the specific circumstances and priorities of your company. Having said that here’s why you should really opt for an external team to help support your software needs: 

Budget Friendly

Choosing an external software provider is more cost-effective as you don’t need to maintain a full-time, in-house team. According to a survey by Glassdoor, the average salary of a software developer in the United States in 2023 was over £94862 per year. As such, outsourcing software development is much more cost-effective when you factor in additional costs like benefits, office space, and equipment.

Maximise Your Strengths

Focusing on core logistics operations while experts handle software development can improve overall efficiency. In a survey by Delloite, 66% of organisations stated that the ability to focus on core business functions was one of the main drivers behind outsourcing.

Specialised Expertise 

Logistics is a complex and highly specialised field with unique challenges and requirements, something that off-the-shelf software developers may not understand or have experience with. 

A software provider with expertise in logistics understands the intricacies of the industry; this knowledge is essential for developing software solutions that align with the specific needs of your business. 

How Custom Software is Advancing the Logistics Industry

At Vector Software, we believe in making an impact on your business that lasts. From that ethos and experience, we know that custom software is advancing the logistics industry by providing tailored solutions to meet the specific needs and challenges of companies like yours. 

Let’s explore in more detail how software providers are doing this:

Route Optimisation

Custom logistics software is instrumental in optimising delivery routes. It can often analyse real-time data, significantly improving efficiency across the board for logistics businesses. 

For instance, a study by the World Economic Forum found that route optimisation can reduce transportation costs by 10-20%, and according to a study by Geotab, companies that optimise routes can reduce fuel consumption by up to 25%.

Inventory Management

The use of custom software in inventory management reduces carrying costs. So much so that a report by the Aberdeen Group indicates that companies with real-time visibility into their inventory experience a 17% reduction in carrying costs. In stark contrast, the National Retail Federation states that overstocking can cost retailers over $123 billion annually.

Warehouse Automation

Warehouse automation integrated with custom software reduces labour costs. According to a report by MHI, 35% of companies utilising warehouse automation experienced labour cost reductions of at least 30%.

Shipment Tracking

Real-time shipment tracking enhances customer satisfaction. A survey by Convey found that 98% of customers consider on-time delivery to be the most critical factor in their shopping experience, highlighting the importance of accurate tracking information.

Customer Experience

These days, the customer experience is everything. More so, customers want more and more self-service portals, and customer software providers that do this can enhance the customer experience tenfold.

According to a study by Oracle, 77% of customers expect companies to offer self-service options for tracking and managing their orders, making this feature indispensable for your future customer satisfaction.

Vector Software: The Right Choice for Logistics 

Ultimately, if you’re not leveraging the latest technological innovations, your logistic company might be missing out on optimising processes and maximising your bottom line. 

However, choosing a custom logistics software provider that suits you all depends on your business needs and your future goals and objectives.

Have a project in mind?

Speak to our expert team at Vector Software to discover how we can help you streamline your logistics operations and enhance your supply chain management.

Ready to streamline your software solutions?

Let’s dive in together. Get expert consulting from our seasoned engineers.

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