10 Use Cases for Outsourcing Logistics Software Development

Software for supply chains and logistics must be developed with a specific set of abilities in order to be dependable and useful. To effectively construct applications that match your specific demands, logistics and chain supply software developers must possess a thorough understanding of business processes in addition to their technological expertise.

One of the difficulties for logistics and supply chain software developers is developing a custom application that satisfies your company demands because each company has different operating requirements. The objective is to solve a few typical issues that supply chain and logistics businesses encounter, such as:

• Effectiveness
• Lowering of costs
• Precision and dependability
• Time management
• Scalability
• Privacy and security issues

Consequently, even though development of logistics software is a complicated task, it is also very rewarding. When implemented correctly, it may help your company succeed in the long run.

What software is used in logistics management?

Today's market is full of software solutions that emphasize specialized sector knowledge while addressing business difficulties in a variety of industries. Notable software categories in the logistics industry include:

Transportation Management Systems (TMS)

TMS systems specialize at handling various logistical responsibilities. These systems perform exceptionally well at choosing carriers, routing, and tracking in real time. Their main goal is to make the movement of products more transparent, cost-effective and efficient.

Warehouse Management Systems (WMS)

Warehouse management system or WMS software assists businesses in managing and overseeing day-to-day warehouse operations, from the time materials and products arrive at a fulfillment or distribution center until their departure. WMS software solutions provide real-time visibility into a company's complete inventory, both in transportation and warehouses, and are a crucial part of supply chain management. In addition to inventory management, WMS software provides solutions for resource management, analytics, picking and packaging procedures and more.

Fleet Management Software

With the use of fleet management software, companies may obtain appropriate data in an easily comprehensible format. The cloud-based platform gives decision makers access to data that they need to succeed, including driver behaviour, vehicle diagnostics and location data. Artificial intelligence and machine learning are integrated into modern fleet management software to assist companies in promptly identifying and resolving abnormalities.

Use Cases of Software Outsourcing in Logistics

Transportation Management Systems (TMS)

A logistics company needs a robust TMS to optimize route planning, track shipments in real-time, and manage freight invoices.

Solution: By outsourcing the development of a TMS software, the company can leverage external expertise to create a custom-made solution tailored to their specific needs. The external team can integrate advanced features like AI-driven route optimization and real-time tracking, providing a competitive edge.

Warehouse Management Systems (WMS)

A company operates multiple warehouses and needs an efficient system to manage inventory, streamline order fulfillment, and reduce operational costs.

Solution: Outsourcing the development of a WMS software allows the company to implement a scalable and customizable system. Features like automated inventory tracking, real-time stock updates, and predictive analytics can be incorporated to enhance warehouse efficiency.

Last-Mile Delivery Solutions

A logistics provider aims to improve efficiency and customer satisfaction of their last-mile delivery operations.

Solution: By partnering with a specialized software development partner, the company can develop a last-mile delivery platform that includes route optimization, real-time tracking, and customer communication tools. This ensures timely deliveries while enhancing the overall customer experience.

Supply Chain Visibility Platforms

A company requires end-to-end visibility across their supply chain to improve decision-making and mitigate risks.

Solution: Developing a supply chain visibility platform through outsourcing enables the integration of IoT devices, blockchain technology, and advanced analytics. This provides real-time data on the movement of goods, helping companies to anticipate disruptions and optimize their supply chain.

Freight Audit and Payment Systems

Manual freight audit and payment processes are time-consuming and prone to errors, leading to financial discrepancies.

Solution: By outsourcing the development of an automated freight audit and payment system, companies can streamline their financial processes, reduce errors, and ensure accurate billing. The system can include features like automated invoice matching, discrepancy resolution, and detailed reporting.

Custom Mobile Applications for Logistics

A logistics company wants to enhance its customer engagement and operational efficiency through a mobile application.

Solution: Developing a customized mobile application through outsourcing can provide features such as real-time tracking, delivery notifications, digital proof of delivery, and customer feedback mechanisms. These functionalities can significantly improve communication, transparency and customer satisfaction.

Predictive Maintenance Systems

A logistics company wants to minimize downtime and extend the lifespan of its fleet through proactive maintenance.

Solution: By outsourcing the development of a predictive maintenance system, the company can leverage IoT sensors and advanced analytics to monitor vehicle conditions in real-time. This enables timely maintenance actions, reducing unexpected breakdowns and lowering maintenance costs.

Automated Load Planning and Optimization

A company needs to maximize the efficiency of its load planning processes to reduce transportation costs.

Solution: An outsourced software solution can automate load planning by using algorithms to optimize space utilization, route planning and load distribution. This not only cuts costs but also reduces the environmental impact of transportation.

Blockchain for Supply Chain Integrity

A company seeks to enhance the security and transparency of its supply chain.

Solution: By developing a blockchain-based solution through outsourcing, the company can ensure the immutability and transparency of transactions. This can help track the provenance of goods, prevent fraud, and ensure regulatory compliance.

AI-Powered Demand Forecasting

A logistics company wants to improve its demand forecasting to optimize inventory levels and reduce stockouts or overstock situations.

Solution: By leveraging outsourced AI and machine learning expertise, the company can develop advanced forecasting models that analyze historical data, market trends, and external factors to provide accurate demand predictions. This contributes to making informed decisions on inventory management and procurement.

Case Study: KNAPP's Partnership with Serengeti

Background

KNAPP AG, a global leader in logistics automation and software solutions, needed to enhance its capacity to meet the rising demand and manage multiple large-scale projects simultaneously. With 40 locations worldwide and over 4,200 employees, KNAPP's warehouse management system (WMS) KiSoft is crucial for their operations, serving major clients like John Lewis and Marks & Spencer.

Challenge

To maintain high efficiency and fast delivery times, KNAPP required more experienced software engineers who could provide flexibility and long-term stability. They sought to support parallel implementations and ongoing maintenance, which demanded a stable and scalable development team.

Solution

KNAPP partnered with Serengeti to extend their WMS development team. Serengeti's team extension model ensured that KNAPP could scale its resources as needed, providing full-cycle WMS services from development to maintenance. The collaboration focused on domain knowledge and independence to minimize management overhead and maximize efficiency. Serengeti's team developed modular and extendable backend systems powered by Java EE and Oracle databases, integrating seamlessly with various subsystems within the warehouse.

Results

The partnership enabled KNAPP to deliver between 4 to 8 large software projects annually, significantly enhancing their scalability and flexibility. This ongoing collaboration, now over six years, has helped KNAPP meet customer demands and achieve business goals, cementing its position as a global logistics leader.

Integration into Logistics Software Outsourcing

This case study illustrates the benefits of outsourcing logistics software development, showcasing how companies can leverage external expertise to enhance their operational capacity and efficiency. By partnering with specialized software development companies, logistics companies like KNAPP can achieve scalability, flexibility, and technical excellence, which are crucial for managing complex and large-scale projects.

Conclusion

Outsourcing software development for logistics and supply chain management offers companies significant advantages, including enhanced operational efficiency, cost reduction, and improved precision and reliability. Solutions include Transportation Management Systems (TMS), Warehouse Management Systems (WMS), last-mile delivery solutions, and predictive maintenance systems. These solutions address challenges like effective time management, scalability, privacy, and security, providing a competitive edge. KNAPP's partnership with Serengeti exemplifies the benefits of outsourcing by demonstrating enhanced scalability, flexibility, and the ability to manage multiple large-scale projects, driving business growth and operational excellence.

Additional resources

• Guide to Successful Software Development Outsourcing
• Case study - Augmented Reality drives efficiency in logistics
• Our expertise

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