How Tech Startups are Creating Disruption in the Logistics Sector?


How Tech Startups are Creating Disruption in the Logistics Sector?

The rapid advancement in technology is sweeping the world off its feet by revolutionizing every other industry including the logistics sector. The technological innovations happening at an unprecedented rate has created a massive disruption by digitizing manual operations to save cost and time.

New tech startups are playing a significant role in modernizing the logistics industry to drive operational efficiency and deliver unmatched customer experience. By providing logistics management software, these startups are helping customers and companies to track consignments in real-time, automate all logistics operations, and minimize the overall logistics cost.

Here is how the startups are bringing changes in the logistics sector:

Seamless integration and data flow

Tech startups offer LMS that can be smoothly integrated into Shopify and Magento order management systems to look into new and existing orders and process them for the delivery. These software come up with smart allocation systems to segregate and allocate consignments to the right vehicle and ensure hassle-free data flow.  

Automating data

It is undeniable that data plays a significant role in making business strategies. Data-driven decisions help a business to understand current and future market trends, customer demands, and other factors to achieve business profitability and customer satisfaction. New advances in data collection and analysis can assist in optimizing routes, number of vehicles, and tracing consignments in real-time.


Maintaining complete transparency with customers is one of the major factors that help in achieving customer satisfaction. Nowadays, customers expect to have complete visibility or tracking systems to know the status of their order. Logistics management systems provide real-time visibility and the convenience of tracking the order by sending a tracking link to customers. Merely by clicking the link, the customers can check the updated location of their order.

Automating route optimization for better transportation

By automating transportation-related activities, tech startups are making e-commerce firms and other online retailers to ensure on-time deliveries and cut down the overall transportation cost. This can be achieved by integrating transport management software into existing ERP. The software finds out the most efficient route to optimize the entire delivery process and increase the chances of first-attempt delivery.

Intelligent order allocation system

The use of technology such as artificial intelligence and machine learning in the LMS and other logistics software has made them smarter. Such software can automate the entire process of mapping consignments to the right vehicle. These systems look into the order management system to know the size, volume, weight, delivery location, and other details of the new orders. It then finds out the right vehicle from the self-owned fleet and begins the mapping process. In the case of the 3PL, the system chooses a 3PL for the same.

Contactless deliveries

Technological innovations have also made it possible to provide contactless deliveries, which is the new normal in COVID times. Customers don’t have to come in contact with the delivery person to receive an order. Drivers can simply leave the package at customers’ doorstep and get the proof of delivery through photo capture, OTP, or any other method. Tech startups have completely redefined order deliveries.

Digitized proof of delivery

Tech startups have made people forget signing on a paper to give delivery agents the proof of delivery. Nowadays, customers can provide a one-time password or allow the driver to capture the photo, or choose any other method for the proof of delivery. Drivers or the delivery agents can also upload the same in their application to share the proof with the e-commerce company.

Automated or driver-less vehicles

This technological era has brought a major transformation in the way businesses used to deliver the orders. It is the time of automated vehicles that are capable of delivering orders without needing a human being to drive the vehicle. Apart from this, drone deliveries are also trending. But these are being used for delivering small orders with a particular weight.

So, if you are looking to upgrade your logistics, then these are the changes you can expect. By using logistics management software with all these benefits, you can make data-driven decisions and assure timely deliveries, transparency, real-time order tracking, and other amazing features. Make the most of the technology to streamline your logistics operations, control all operations in real-time, and achieve the utmost level of customer satisfaction.

To get an advanced LMS, contact Shipsy, one of the best logistics management software providers. You can provide your particular business requirements and Shipsy will provide you with the logistics software tailored to your business needs.


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