Transportation is the backbone of the global economy, and is a necessity for all the industries. The transportation and logistics industry is always keen to adopt technologies to streamline their operations. Many transporters prefer using fleet management solutions while others are opting for custom logistics software development. However, both options have their pros and cons. But, we’ll go through it in the later part of this article.
logistics management software is an umbrella software de asistencia term for all sorts of software solutions that help T&L (Transportation and Logistics) companies deal with both inbound (procurement), goods handling (warehousing), and outbound (shipping) activities. The ultimate goals of logistics management softwares are to:
Emerging technologies such as cloud computing, Internet of Things, and AI, facilitate a flourishing future for the logistics management software market. The demand for logistics software solutions is increasing due to availability of emerging digital technologies for a much lower price as compared to the past. Hence, more and more Transportation & Logistic businesses are realizing significant business value in investing in logistics management softwares.
Researchers estimate that logistics software solutions can save five to ten percent for the transportation expenses. And Transport & Logistic companies seem positive to reap these benefits, as the global market for transportation management is estimated to reach $30. The market size was $9.6 billion in 2016, and will grow with a compound annual growth rate (CAGR) of 13.6 percent.
The following report by Statista, shows the world’s top freight transportation companies (in terms of annual revenue) in 2018. The report also stated that transportation and logistics management software implementation helped companies achieve such results.
Deutsche Post DHL believes that conventionally, logistics management softwares was accessible only to large Transport & Logistic companies due to the implementation complexity and the cost associated with setup and management. However, the rise of new technologies and their integration capabilities, have significantly reduced the time and cost required for these software solutions. As a result, companies of different sizes have now started adopting logistics management software solutions.
The diagram depicted the technology trends that could potentially influence the transportation and logistics industry in the next decade.
DHL also stated that Big Data analytics, Internet of Things, Augmented Reality, Cloud Logistics, Robotics and Automation, AI & AR, Low-Cost Sensors, and self-driving vehicles are among the upcoming technology trends that will positively impact the transportation and logistics operations.