How to Develop a Logistics App: A Comprehensive Guide

• By Jennifer Watson
• 07-06-2024
• Mobile App Development

Embarking on the journey of developing a logistics app holds the potential to revolutionize the logistics sector. By enhancing supply chain visibility and efficiency, these apps can lead to substantial cost savings and improved service. They are the digital solutions that the transportation and delivery industry needs. The logistics sector is waking up to this need, and the development of these apps is becoming a trend. The logistics market, valued at US $9.902 trillion, is projected to grow at a CAGR of 9.2%.

This blog intends to provide complete information on the development of logistics apps.

Benefits of Logistics App For Your Business:

Here is the list of benefits for your Logistics Business:

• Accurate Time Tracking and visibility: One of the most compelling advantages of a logistics app is its real-time tracking and visibility feature. Imagine being able to track your business operations at any given moment. The app, integrated with GPS, allows you to monitor vehicle movements. It even suggests the most efficient routes for drivers, optimizing their travel time and fuel consumption.
• Data Analytics and Insights: This application helps business owners collect various data, from shipment to delivery time stamps, and this collected data enables them to get invaluable information like demand patterns, resource allocation, and cost management.
• Less Paper Automation: Maintaining a manual data record can cause errors and unnecessary business delays. Automation in logistics operations helps reduce error rates and improve operational efficiency.
• Better Productivity: The Logistics application speeds up all transportation workflows and saves time, improving productivity and business efficiency.
• Revenue Growth: Finally, all the above benefits contribute to revenue growth. A more productive setup can help you attract more new customers and increase the number of recurring clients. At the same time, an app can make your company more accessible and help you optimize key processes that lead to higher profit.

Future of Logistics App Development

The logistics industry is evolving, and with the latest technology and innovation, it is all set for a bright future. Statistics can well represent this industry's future.

According to Statista, the international trade of the logistics industry will exceed $13.7 Billion in 2027.

According to a global logistics overview by Market Research Institute, the industry is expected to exhibit a CAGR of 6.80% and project a growth of USD 16,01,196.16 million by 2030.

According to Gartner predictions, by 2023, 50% of global product-centric enterprises will have invested in real-time transportation visibility platforms.

Type Of Logistics App:

• Fleet Management Apps: This logistics application is successful for companies with a fleet of vehicles for commercial transport or cargo shipment. Logistics apps help these businesses by tracking all updates about trucks and companies in real-time.
• On-Demand Logistics App: An on-demand app for logistics connects drivers and customers who need their cargo delivered to a specific location.
• Real-Time Tracking Applications: Tracking logistics applications provide current locations to customers, managers, and owners so they can see their vehicles' whereabouts and track their routes. Drivers can also use tracking apps to navigate the different roads and reach their destination on time.
• Inventory Management App: The warehouse and Tracking management app helps track goods, deliveries, and warehouses.

Revenue Model of Logistics App

The revenue model of the Logistics app depends on its target market and features. Here are some common ways for logistics apps to generate revenue.

• Transaction Fees: The app charges a fee for every successful transaction that happens through the app.
• Subscription Model: The app offers subscription-based plans with tiered pricing models based on usage, features, or access levels. Subscribers pay a monthly or annual fee to access premium features, such as advanced analytics, priority support, or increased visibility.
• Freemium Model: The app provides essential features to attract customers but offers some premium or advanced features only in upgrades or subscriptions.
• Commission on Value-Added Services: Besides facilitating shipments, the app may offer value-added services such as insurance, warehousing, customs clearance, or fleet management. The app earns a commission or markup on these services when users use them through the platform.
• In-ad Advertisements: Apps generate revenue by displaying advertisements of their products to the user. Advertisers pay the app to feature their ad on their app.
• White-Label Partnership: A well-developed and established app can sell its name to other startups. This helps them earn money and build their monopoly in the market.

Must-Have Primary Features In a Logistics App

In this section, we will mention the functionalities used in the logistics app —

• Geo-Location: This feature helps businesses track the real-time location of drivers and cargo shipments.
• Push Notifications: Users should always know the shipment’s delivery status and receive notifications regularly.
• Calculation: Clients need to know how much the delivery will cost and the estimated time for delivery. The calculation feature helps them understand the precise cost and timelines before they sign up for the service. This feature can be fully tailored to your organization’s requirements.
• Integration with Third-Party Services The logistics app can be integrated with third-party applications to modify its functionalities and make it more innovative.
• Payment Gateway Integration—Adding a secure and easy payment gateway to your app is essential. This can ensure a seamless experience and improve business productivity.

Features Of Logistics App Development:

Here are some of the critical features of a Logistics App:

User App–

• User Registration: This feature allows users to maintain their profiles. They can edit information such as name, phone number, email, and address on their profiles.
• Order Management: Users can manage, track, cancel, or reorder shipments and gain insights into everything related to them.
• Search Nearby Vehicles: Facilitates users in finding nearby vehicles to ease logistic coordination and convenience.
• Choose Vehicle: This feature enables users to select the best-fit vehicle for their shipment according to their consignment size.
• Tracking: Users can quickly analyze their packages' location, making planning their delivery easy.
• Real-Time Alerts and Notifications: It provides real-time shipment updates at every stage, and logistics can also send notifications to update users about the order.
• Multiple Payment Options: It provides secure and convenient payment options to the users, and they can choose from their preferred mode of payment, such as debit card, credit card, or cash on delivery.

Driver Features:

• Registration: Drivers register on the app using their ID proofs or emails. To register a profile, they must also provide personal information like name, address, and phone number.
• Dashboard: The dashboard provides drivers with real-time information on all logistics operations. It updates order delivery, delivery routes, and vehicle performance metrics.
• Consignment Delivery Details: This feature provides drivers with shipment delivery information, such as route details and the time required to reach the destination.
• Pre-Planned and Best Route: Integrating this feature in the driver panel can help them choose a dynamic route that can save time and fuel. The best route feature enables drivers to select an efficient delivery route by considering road conditions, road closures, and other factors to minimize delays.
• Data Analytics: One crucial feature allows drivers to analyze various metrics such as route optimization, delivery times, vehicle performance, resource utilization, etc.

Admin Panel Features:

• Dashboard: The admin dashboard provides the administrator with information such as completed shipments, total deliveries, fleet performance driver information, and processing status.
• Vehicle Management and Maintenance: The administrators must manage and view the fleet’s performance to avoid unexpected delays and service losses.
• Driver Management: Admins should be able to manage their driver fleet, including scheduling shifts, assigning routes, and tracking
  Payment Management enables the admin to efficiently verify, analyze, and monitor financial transactions.
• Reports and Analytics: Admin panel features provide administrators insight into critical metrics like inventory turnover ratio, average transportation cost, and operating ratio.

Steps to Create a Logistics App

1. Define Your Objective: The first step towards developing a logistics app is to know your objective and clearly define your goals. You must also consider your specific sector, target market, and business requirements.

2. Plan your app‘s features and functionalities: The second step in developing a logistics app is selecting the right features and functionalities. Adding the right features will attract users quickly and provide a seamless experience.

3. Build the Technology Foundation: This stage builds the technological foundation of the app and ensures seamless performance, flexibility, and scalability. This section sets the stage for successful logistics app development, from choosing suitable programming languages to crafting a robust server architecture.

4. Consider the Cost of Logistics App Development: When building an app, it is crucial to consider the development cost. Here are some factors that affect the price of development:

• App Complexity and Features
• Backend and Frontend Development
• Technology Stack
• Platform Selection
• App Development Team Size

5. User Experience Design: Developing an easy-to-use, intuitive, and user-friendly experience is essential. By considering customers' demands, UI/UX designers can create applications that are easy to use for customers.

There are various elements that a user must consider:

• Seamless User flow
• Visually appealing user Interface
• Utilization of visual elements.’
• Feedback and Testing by users

6. Development Process: The next step is the development process. In the development process, try to integrate all the necessary logistics app features and screen variations with the help of third-party integration and the right tech stack.

7. Ensure Quality Assurance and Performance: The next step is to check the application function and correct all the bugs to ensure the best results. Therefore, mobile app testing is the most crucial step before bringing the product to market.

Factors that Influence The Cost Of Development of Logistics App

• Features and Functionalities: The complexity and number of features affect the cost of developing the app. Adding advanced features like AI recommendations and real-time tracking requires more time and expertise. On the other hand, adding basic features to the app costs less than integrating advanced and complex features.
• Choice of Platform: The choice between iOS, Android, or cross-platform development can affect the cost of developing a grocery delivery app. iOS typically has a higher price due to the requirement of specialized tools. On the other hand, the development cost for Android apps is less than that of iOS.
• Integration with Third-Party Services: Integrating the app with third-party services such as payment gateways, APIs, social media platforms, or analytical tools can enhance its functioning but significantly affect its total development cost.
• Security Measures: Implementing measures to secure data, transactions, and sensitive information is crucial. These include encryption protocols, stable authentication mechanisms, and compliance with data safety regulations like GDPR and HIPAA. Therefore, ensuring the app's security adds additional fees to the development of the app.

Top Logistics Apps in the World

Fleet Complete:

Fleet Complete is a logistics app designed for fleet management companies. This app provides real-time tracking, live traffic updates, and driver performance analysis to help businesses optimize their fleet operations. Additionally, Fleet Complete offers features such as fuel monitoring, maintenance scheduling, and driver behavior analysis to further streamline fleet management.

Stord:

Stord is a top choice for companies looking to improve their logistics business. It is a platform that specializes in warehousing and distribution operations. This app also allows businesses to manage inventory levels, track deliveries, and monitor supply management in actual operations.

Deliveries Package Tracking:

Deliveries Package tracking is specifically designed for individual customers. Its real-time notifications and updates feature lets users track their packages from multiple carriers. The Delivery Package Tracker helps users stay on top of their deliveries and avoid delivery delays.

LoadSpring:

Loadspring is a logistics company that offers project management solutions for the logistics business. It incorporates real-time tracking, resource management, and project planning features to help companies streamline their operations.

Route4me:

Route4me is a logistics app that specializes in route optimization and planning. This app allows companies to create the most efficient routes for their drivers, improving efficiency and reducing fuel consumption. Also, Route4me offers real-time tracking and delivery confirmation notifications to ensure companies that their deliveries are made on time, reducing time.

Conclusion!

A logistics app can improve the efficiency and productivity of your logistics business. In this blog, we have provided all the significant information for developing the logistics app. It’s crucial to consider substantial features and functions when developing a logistics app for your business.

You can hire a well-established mobile development company to build a successful logistics app for your business.