How To Choose The Best Logistics Software In India

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How To Choose The Best Logistics Software In India

The logistics industry plays a significant part in keeping the economic wheel of India moving forward. Fueled by technological and infrastructural developments, the Indian logistics sector is growing at an unprecedented rate. As per Statista, it is expected to grow at a CAGR of 10 to 12 percent and reach 380 billion dollars by 2025. Growing demand for logistics calls for efficient logistics management and hence, implementation of logistics software in India. Before delving deeper, let’s check out the Indian logistics market’s segmentations by model type, transportation mode, end-use, and region.

Logistics Sector In India: Key Segmentation

Model Type

The logistics market can be categorized into 2PL, 3PL, and 4PL models.

Transportation Mode

Roadways, airways, seaways, and railways are the main transportation modes in the logistics industry.

Region

The Indian logistics market is divided into west and central India, north India, south India, and east India region. 

End-Use/Industry

Industries, including consumer goods, manufacturing, retail, chemicals, telecommunications, oil and gas, construction, e-commerce, and food and beverages, use logistics services.

Logistics Software In India: Drivers of the Market

The logistics sector has gone under a massive transformation in the past decade. Some of the key drivers aiding this growth include:

  • Initiatives like the Gati Shakti Master Plan for multimodal connectivity will bring together sixteen ministries, including railways and roadways, to ensure well-planned and coordinated implementation of various projects.
  • Rapid growth in e-commerce, retail sector, and D2C business models.
  • The introduction of e-way bills, e-invoicing, fast tag, GPS-based toll collection, and more.
  • Growth and development in the manufacturing industry envisioned through the “Make In India” campaign.
  • Increasing use of next-gen IoT devices to set up modern warehouses and smartly manage warehouse operations.
  • Increasing use of AI, machine learning, cloud computing, big data, blockchain, RFID tags, and other technologies to address complex logistics and supply chain challenges.
  • Development of roads, ports, freight corridors, and dedicated transport hubs. 

5 Major Logistics Challenges In India

High Order Intensity Ratio

When the order volume increases during sales or festivals, companies struggle with prioritizing orders and ensuring on-time deliveries. It mainly happens when a business has limited resources or an inefficient logistics management system.

Port and Shipping Issues

Understaffed ports, overstuffed berths, late evacuation of cargo, and poor infrastructure at the coastal ports are some of the port and shipping issues are some of the roadblocks to efficient logistics management.

Logistics challenges in India

Manual Intervention

Increasing manual intervention to perform various logistics operations is one of the biggest logistics challenges companies face. Dependency on human resources not only increases labor costs but also increases the time for logistics operation completion. 

Poor Warehousing Facilities

Lack of storage space, damages due to leakages, pest-infested warehouses, etc., are the problems that impact logistics in India. Bigger warehouses are used for storing grains, and the companies are left with smaller ones for storing cargo.

Increasing Transportation Costs

Fluctuations in fuel prices directly impact transportation costs. It increases the surcharge to the freight rates and reduces the profit margins. Besides, poor route planning, increased distance traveled, and other factors also contribute to increased transportation costs.

By integrating logistics software in India, companies can bring automation to labor-intensive operations and bring transparency during the entire logistics journey. The software streamlines end-to-end logistics processes for efficient management of both domestic and international logistics. The implementation of a logistics software solution can overcome all logistics challenges, but the question is how to select the best logistics software in India.

How to choose the best logistics software in India?

The first point to consider while choosing logistics software in India is to look for customization. Determine your specific business requirements and then consider which type of logistics solution would be a perfect fit. You can select from different types of logistics software solutions:

  • End-to-end logistics management software solution
  • Courier aggregator management software solution
  • First mile logistics management software solution
  • Middle mile logistics management software solution
  • Last mile logistics management software solution
  • Route planning and optimization management  software solution
  • On-demand delivery management software solution
  • International logistics management  software solution

To know more about each of these solutions in detail, read Different Types of Logistics Software Solutions and Their Use Cases.  Make sure the logistics software solution you choose offers the following:

Automated Workflows

Intelligent logistics software solutions should offer automated workflows to empower businesses to manage and monitor end-to-end logistics operations, from getting the raw materials, procuring freights, and final delivery of the goods. It should also provide predictive analysis capabilities to minimize incidental charges, including demurrage, detention, and more.

Order Management

AI-backed logistics software in India should optimize the order fulfillment process, which includes picking up goods from the source and then delivering it to the final location. In other words, it should optimize all three legs of logistics, i.e., the first, middle, and last mile. Logistics automation minimizes order-to-fulfillment time and costs and improves the customer experience while improving overall efficiency.

Effortless Integration

The logistics software should be easy to integrate with your existing ERP/WMS/OMS. Besides integration, look for customization and scalability. Customization is necessary to ensure that the software fulfills your specific business requirements. On the other hand, scalability ensures that you can add more features to the software as and when required.

Logistics software in India

Automated Route Planning and Optimization

Route planning and optimization is one of the essential features of a logistics software solution. It ensures the timely and cost-effective movement of goods from one location to another. Route planning and optimization also minimize resource utilization, distance traveled, and carbon footprint.

Data Analytics

Advanced data analytics can help businesses make data-driven decisions to minimize delivery times, boost operational efficiency, enhance customer experience, reduce overhead costs, increase fleet capacity, and get other benefits.

Shipsy: AI-Powered Logistics Software in India

Shipsy’s SaaS-based logistics software solution leverages the capabilities of artificial intelligence, machine learning, and other top technologies to ensure efficient logistics management via smart capabilities. Businesses from manufacturing, e-commerce, retail, and other industries can streamline their operations with the help of real-time tracking, data analytics, and other features of the software. Using the software, businesses can unlock:

  • 12% reduction in freight cost 
  • 34% reduction in incidental expenses
  • 14% decrease in last-mile delivery costs
  • 32% increase in mid-mile vehicle utilization
  • 37% decrease in ETA SLA breaches
  • 64% increase in positive customer experience

Contact our experts for a demo.

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