Software Used in the Logistics and Transportation Industry
Tags: logistics, transportation, tms, supplychain
Published: 2019-10-21 12:37:44

Full article: https://yalantis.com/blog/how-mobile-and-web-apps-help-optimize-processes-in-logistics/

Fastest-growing key transportation and logistics providers such as AmeriCold Logistics and C.H. Robinson use a variety of technologies to improve the process of managing their supply chain operations. Constant automation helps these companies dominate by applying logistics best practices, leaving no chance for other players to give up on automation. 

There are plenty of cloud and on-premise solutions for transportation optimization. But each logistics company has its own operational peculiarities that aren't fully covered by existing solutions. That’s why you, as a transportation or logistics provider — or as the owner of a business with a logistics department — have a hard choice: Should you create software tailored for your specific needs or adopt a commercial solution? 

To answer this question, take into account your business requirements and compare them to available shipping software and supply chain tools. This will help you understand if you need to create custom software. This article sheds light on how to optimize your operations using key software systems. Let’s begin with a transportation management system (TMS).

Smart-Logistics-a-TMS-built-by-Yalantis

How to build a TMS based on your business needs
Without an automated management system, keeping track of the transportation of goods requires an extensive team of employees. A TMS helps to manage all inbound and outbound supply chain operations. It covers transportation management, planning and decision-making, follow-ups, and analytics. There are two types of TMSs: on-premise and cloud-based. 

On-premise TMS. These systems are installed and run on local computers. A TMS provider physically installs the TMS at the customer’s headquarters. To get an on-premise TMS, you first need to pay for installation. You’ll also have to pay to upgrade the system to new versions. In addition, such software requires a specialist to deal with security to backup data on your own enterprise system. Keep these expenses in mind if you choose an on-premise solution. With an on-premise solution, all data is stored locally, which means a disaster might result in the complete loss of data if you don’t back it up properly. 

Cloud-based solutions. Cloud-based software is hosted online, so users can access it from anywhere. Most cloud-based TMSs are offered by providers using the software as a service (SaaS) model. Users subscribe to the service on a monthly or annual basis without buying the software outright. A cloud-based TMS always provides users with the most up-to-date version of the system. With a SaaS solution, you pay as you use the product without investment upfront. SaaS upgrades are normally free and transparent, and they roll out on the web as soon as they’re ready for implementation. But you’ll still have to buy, maintain, and periodically replace expensive server hardware unless a SaaS vendor backs up data as part of its service. 

Choosing a cloud-based TMS matching the size of your company
Most cloud-based TMS platforms can integrate with external Warehouse Management Systems (WMSs), invoicing systems, and proprietary solutions. Each of these shipping platforms has its own peculiarities. You can decide which is right for you based on the size of your company. The following platforms are just examples of what’s out there.  

Small and medium-sized logistics providers. BluJay and 3Gtms are among the key players in the transportation management software market. BluJay provides a standalone TMS and managed shippment tracking services. This software offers both domestic (US) and international capabilities. The platform also offers plug-and-play supply chain execution packages. Mid-sized shippers and third-party logistics providers (3PLs) use BluJay, but it’s capable of supporting larger shippers as well. 

3Gtms aims at small to medium-sized shippers and 3PLs. Keep in mind that this service does not currently support rail and international air and ocean transport. 

Large logistics providers. Oracle is a leading supply chain management software provider whose logistics platform is tailored to large shippers with complex shipments and third-party logistics firms. Oracle handles global supply chain requirements. Note that the total cost of ownership of Oracle software is higher than for other TMS platforms.

Logistics businesses of any size. MercuryGate’s customers are mainly in North America. The MercuryGate TMS supports domestic and international modes of freight for businesses of any size: 3PLs, brokers, shippers, and private fleets.