How to Develop a Logistics App: A Comprehensive Guide

Whether it is truck transportation, supply chain management, international transportation, or more, these subsets of the logistics industry struggle with a lack of supply chain visibility, data management, route optimization, and more.

The ultimate solution to all these challenges is Logistics software development!

Adopting technology enables businesses to avail the benefits of the latest tech like AI, blockchain, IoT, big data, and more. However, when implementing digital solutions like these, the business owners are often reluctant and intimidated, anticipating its impact on their business.

To clear your second thoughts, here are some insights into what the logistics app development future holds.

What is the Future of Logistics App Development?

With these industries’ futures being reshaped with innovation and the latest tech, it is all set to have promising growth. The future of this industry can be well represented with all the expected statistics and insights. 

• The worth of the logistics industry fueling international trade will exceed 13.7 billion euros by 2027 according to statistics and facts on transportation and logistics by Statista. 
• The E-Commerce Market size is estimated to reach USD 16.24 trillion by 2028, growing at a compound annual growth rate(CAGR) of 15.80% during the forecast period (2023-2028), as mentioned in the e-commerce market analysis by Mordor Intelligence.
• The logistics industry is expected to exhibit a CAGR of 6.80%, projecting a growth of USD 16,01,196.16 million by 2030, according to global logistics overview by Market Research Future. 
• According to Gartner predictions, by 2023, 50% of global product-centric enterprises will have invested in real-time transportation visibility platforms.

How Does a Logistic App Work?

Basically, a logistics app serves as a comprehensive solution that optimizes the movement of goods, enhances visibility across the supply chain, and facilitates effective communication among stakeholders.

At its core, the logistics app works by integrating various components of the logistics chain, transforming manual tasks into efficient, automated operations. The process typically begins with order placement, where the app captures information about goods to be transported. This data then flows seamlessly through the logistics network, encompassing tasks like inventory management, route optimization, shipment tracking, and more.

In essence, a logistics app acts as a digital command center, integrating these components to optimize the movement of goods from the starting point to the ending point.

To understand what impact the adoption of the latest technology has on this industry, explore how technology has transformed the Logistics industry?

Different Types Of Logistics Apps

From real-time tracking to inventory management and more, logistics apps have evolved to address specific challenges in the transportation and logistics industry. Let us explore various types of logistics apps, each tailored to meet distinct requirements and contribute to the efficiency and effectiveness of the entire supply chain ecosystem.

On-demand Logistics Applications

Unlike the unconventional logistics application, which heavily relied on the manual process, had inefficient resource management, and most of all was chaotic when offering customers any impromptu last-mile deliveries or urgent shipments.

On-demand logistics apps are the best bet enabling businesses to cater to the dynamic needs of businesses and consumers alike. Whether it’s parcel delivery, ride-sharing for goods, or instant courier services, on-demand logistics apps provide a responsive and efficient approach to offering immediate and flexible logistics solutions.

Fleet Management Applications

Fleets are an indispensable asset for businesses, especially transportation companies; it becomes inevitable for business owners to have real-time insights into every aspect related to their fleet. From instantaneous vehicle locations to fuel consumption, maintenance schedules, current vehicle condition, maintenance histories, vehicle’s operating cost, maximum payload, and more.

Getting this information handy would enable the logistics business owners to maximize productivity, reduce costs, and ensure smooth operations by ensuring timely maintenance, optimizing routes, efficient delivery planning, and more.

Warehouse and Inventory Management Applications

It can be considered a subset of a real-time tracking app as it is designed to simplify the complexities of tracking, organizing, and managing shipments and inventory within a supply chain. From tracking stock levels to orchestrating seamless warehouse operations, these applications often feature real-time tracking, order processing, and inventory monitoring capabilities.

With features like real-time tracking, barcode scanning, and automated order fulfillment, these applications simplify the complexities of handling large inventories.

Supply Chain Management Software

Supply chain management software ensures a seamless flow of information across every link in the supply chain enabling business owners to oversee and optimize the entire supply chain, from procurement to distribution. Some of the crucial features of these apps are inventory tracking, order processing, real-time analytics, and more.

These applications are tailored to meet the specific needs of businesses, enhancing visibility, optimizing processes, and ultimately contributing to the overall efficiency of logistics operations.

Real-Time Tracking Apps

If your business wants the user to get instantaneous and continuous updates on the location, status, and movement of goods in transit, then a real-time tracking app is the most suitable type of logistics app. This app uses the power of GPS technology and other advanced systems to offer precise, up-to-the-minute information.

From monitoring the journey of shipments to ensuring timely deliveries, these apps bring transparency, accuracy, and speed to the logistics process. Amongst others, it also enables the drivers to share their location, current delivery status, and so on.

Delivery Apps

From optimizing and streamlining the delivery process to ensuring goods reach their destinations efficiently, delivery apps are all that businesses need with their primary offering as shipment delivery.

Unlike other types of logistics apps that focus on broader supply chain management or inventory tracking, delivery apps are laser-focused on the crucial last-mile delivery(on-demand deliveries) apart from the scheduled ones. The additional functionalities this app includes are real-time tracking and payment processing for additional user convenience.

What Are the Main Challenges in Logistics App Development?

Apart from the challenges that the logistics business owners face regarding their operation fuelled by the unconventional systems, there are some development challenges too which they may face. Here are some major challenges these businesses may encounter during the app development process:

Data security and restrictions

With developing a logistics app, there comes the data(sensitive user information) that the business owners require to provide an engaging user experience in the logistics app. The biggest challenge that arises because of this data is its protection from cybercriminals/hackers.

Whereas in some locations/countries, there are specific restrictions in fetching some data like GPS data and more. This would only add to the development complexities as the development solution needs to be tailored to ensure it runs smoothly regardless of such geographical restrictions.

Choosing the right feature set

You do not want to end up developing an app that is already offered by your competitors or that is not needed by your target audience. Offering features that only address the industry needs and streamline operational efficiency but are offering valuable unique selling points (USPs).

The best approach to overcome this challenge is by developing a minimum viable product(MVP) that comprises minimum yet valuable features. And then build upon your MVP based on user recommendations and feedback along with your defined set of features based on market research.

Picking up the right tech stack

The best tech stack gives your custom logistics software stability, high performance, scalability, and more. From ensuring that the chosen tech stack aligns with the creative vision to potential constraints, and supports the app’s architectural requirements, adaptability, and more. It also considers factors like development speed, community support, and the ability to accommodate future enhancements.