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In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Grocery Wars

Software as a Service in Logistics

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Regardless of how small the logistics business is, it is now possible to use the self-same systems and processes as the much bigger players in the sector.

Software as a service is one of the easiest ways for a man and a van to compete with the bigger players and serves to equalize the playing field in the logistics and transport sector.

What is Software as a Service?

Also known as software on-demand, software as service (SaaS) is a current trend that is dominating most business sectors. It’s a software distribution methodology that allows for applications that are hosted in the cloud to be accessed and used by others.

It generally allows for a reduction in costs, is easy to set up, and provides universal access. For example, fleet management software can be accessed by all who pay for it, and the same systems used by transport giants like DHL, FedEx, and UPS can be used by the independent operator doing last-mile deliveries in their local area.

The aim is to provide the software and IT services from fulfillment to delivery and thus be able to track and monitor goods throughout the supply chain.

SaaS In the world of logistics:

SaaS has become critical for operators in logistics and transport and allows for a level of integration and sophistication not seen before in logistics.

Advanced route planning

Without the high costs of investment in IT infrastructure, software and staffing, logistics businesses can access and use managed software to improve efficiencies and manage the route planning across the organization. With access to integrated data and real-time conditions, route planning can be a lot more accurate and detailed.

Increased Flexibility

The software now available in the logistics industry allows for route and load flexibility. The integrated end-to-end approach means that there will be a significant increase in asset utilization, improved route planning, and a reduction in fuel costs. With fuel being the largest cost associated with transport and logistics, any reduction will go a long way to improved profitability.

Planning Execution and Analysis

Accessing software in the Cloud that will assist with logistics planning, providing demand forecasts, and then using sophisticated integrated scheduling that will improve efficiencies is a common element of the logistics software.

However, this is only part one, and the software available continues to provide support throughout the supply chain and delivery cycle. From execution or actual delivery to the analysis of each trip to improve efficiencies and costings, there is now a software package that can be accessed online.

These can also be used remotely on a pay-as-you-go system or as an entirely managed service that will save the logistics company money and provide support and maintenance.

Software as a Service has come a long way and currently develops so fast that there is always a new option available. The secret for the logistics sector is to ensure that this software as a service is integrated with the other systems and processes that you have running. Being able to link and access information on staffing or drivers’ availability, weather, expected loads, and delivery times in the logistics software provided is the only way to fully understand and plan modern logistics processes.