What is a Transportation Management System?

Fleet management businesses will have more of a focus on local transportation rather than long-haul. Usually, these businesses deal with shorter driving distances, so efficient route planning is a must. They also have strong asset management features that cover preventive maintenance on their vehicle fleet.

  • AI uses Natural Language Processing (NLP) tools to extract essential data from invoices to identify budget discrepancies.
  • These elements ensure that the goods consumers need are stocked and orders are fulfilled in a timely manner.
  • Economic disturbances and sudden changes in government regulations disrupt supply chains beyond measures.
  • Autonomous supply chains strive to connect all data points and internal functions into a common integrated network.

If your fulfillment logistics is in-house, you need to get your team on board with a digital logistics solution you choose and you need to train them to use it effectively to see significant results. Before signing up for a digital logistics solution, request a demo first to see what the user experience is really like. ShipBob provides a demo and price quote before getting businesses on its platform. Traditional logistics prevented DTC brands from identifying where they could store their inventory to ship to their customers faster.

Types of logistics services

Logistics software for small businesses makes life easy for emerging companies. Minimizes manual work for small companies, increases delivery efficiency, reduces transport expenses by route optimization, and improves customer satisfaction. The predictive analytics feature of logistics software brings accuracy to the decision-making process. For instance, the global logistics giant DHL uses predictive analytics to predict air freight transit time delays, and average daily transit time.

logistics software meaning

Implementing bots helps respond to RFQs on time and speed up the quotation process with less human intervention. Bots can help provide timely quotations and improve the chances of winning the RFQ. Bots can also support increasing sales because of their 24/7 availability and faster response rate. If you have a product that’s selling very well but has a low profit margin, you could choose to restock a product with a higher profit and slightly lower sales instead.

Courier shipping

Solutions that address specific cargo, transportation, and logistics industry needs help you achieve cost-effective transformation and sustainable growth. The Logistics Technology Platform is a supply chain management offering from Descartes Systems Group headquartered in Ontario. Manages purchase orders and supply levels, tracking the on-hand, allocated and ordered quantities along with historical and trend information for forecasting purposes. Cloud technology is always connected to your resources and integrated with all departments. Important data such as carrier rates, party screening data, and your vendor list can be updated frequently with the most up-to-date information.

There is no better example of this than the recent Covid-induced supply chain management issues. Ideally, a logistics management system covers all aspects of a supply chain. It provides the functionality to receive, process, and exchange important data between participants, ensuring optimized workflow and decreasing inefficiencies. Cloud apps ensure equal, 24/7 access to the data for distributed teams and departments. Chatbots, or digital assistants, can reduce administrative costs by handling routine client queries.

Faster Delivery

With Upper, you can easily generate reports for your drivers and gauge their performance. These reports also show which routes were more profitable and the ones that require further optimization. The live-tracking feature enables you to track the live-driving performance of your delivery operations personnel. Sortly is a simpler inventory management system compared to Zoho Inventory. The software interface lets you print QR and bar codes for all your inventory items.

Logistics teams didn’t have enough access to how their warehouses operated, so they couldn’t improve their warehouse receiving processes, their order fulfillment workflows, or their storage and stocking practices. So while the ongoing supply chain crisis is challenging, industries may look back on their pivot to digital logistics during COVID-19 as a positive one. Logistics management software is a perfect solution for companies that lack an in-house logistics management department. But it will add tremendous value even if you’ve a logistics management department. The software solution helps you optimize your existing strategies using live tracking and management insights.

Types of Logistics

Understanding how to get the right resource to the right place at the right time can be a differentiator for a business, adding value to the customer while at the same time cutting costs and boosting the bottom line. Since most logistics operators serve third parties on a contract basis, freight brokerage software needs to manage the business aspect, too. Freight broker software can include bid and contract management, CRM, accounting and other essential business functions. Like most types of software, the best warehouse management systems offer many levels of security. Since the warehouse management system has all of the information at hand, when a customer sends an order, it will immediately be able to check if the products are available.

logistics software meaning

Companies investing in quality information coming from various sources produce meaningful insights. Enriched by new technologies, a modern transportation management system provides the automation, insight, and intelligent technologies that help companies shipping goods to thrive in the digital age. The emergence of cloud-based transportation management system software has leveled the playing field. Once the domain of only larger entities, TMS software is now being used by smaller companies that need an integrated digital system to compete in today’s marketplace. By leveraging data and advanced analytics, your transportation company can gain greater financial insight and control through a faster, compliant financial close. Our innovative solutions can help empower your finance teams to transform into business leaders to give your corporate enterprise a competitive edge.


As the demand for online delivery grows and consumers’ expectations become larger, the need to optimize logistics has never been greater. As a result, software developers have set to work creating platforms designed to make the supply chain more manageable. Likewise, fleet management company Motive has made it easier to track cargo and drivers while improving efficiency and safety along the supply chain. While 3PL providers are capable of handling the entirety of a company’s supply chain logistics software meaning operations, the different components of the logistics process can be carried out by individual players. For instance, freight companies solely handle the physical transportation of goods, while freight forwarders are dedicated to optimizing transport solutions and handling necessary documentation. In this sense, logistics could be seen as a complex web of moving parts, which operate in tandem with one another in order to boost efficiency and reduce costs within the supply chain.

logistics software meaning

Logistics software simplifies work by quickly processing these data and seamlessly pushing forward the operations with minimal delays. An integrated WMS is normally an add-on from your existing Enterprise Resource Planning (ERP) provider. The warehouse management system takes the orders and directs the order picking process, inventory and receiving and shipping of products. When everything is able to integrate into one system, it’s much easier to keep track of which orders are best to invest money in. Logistics automation is the application of computer software or automated machinery to improve the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution center, with broader tasks undertaken by supply chain engineering systems and enterprise resource planning systems.

Top digital logistics solutions & companies

Logistics service providers are experts in getting products to customers promptly and efficiently, greatly improving customer satisfaction. Circuit for Teams can also give greater visibility into warehouse operations, so you can better optimize inventory management and reduce storage costs. Some logistics management software is designed to be configurable for various industries, while others are aimed at specific industries. Logistics management software generally began as on-premises systems, but more cloud or hybrid cloud options are now available. MDacne is a DTC brand that offers custom acne treatment kits to its customers. In a traditional logistics environment, the mDacne team would have to manually enter order information for fulfillment.

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