The trends affecting the enterprise market also apply to SMBs: Increasing automation and data-driven decision making, real-time visibility and a constant search for efficiency. But the problems look different for SMBs, and so do the solutions.
Any worthwhile logistics software app in 2024 needs to offer the basics: route optimization, customer notifications, real-time tracking, proof of delivery, and excellent customer service.
The quality of route optimization differs a lot between apps. Test each option with a real data set from your own operations to see which one suits your business needs best.
2023 was a tough year for small delivery companies. Supply chain disruptions, which started during COVID-19, continue to affect the movement of goods around the world, and shipping costs have increased. The price of fuel has been a rollercoaster. And the shortage of qualified delivery drivers is a persistent issue.
Choosing the right logistics software has never been more important. There’s been an explosion of software for small businesses, creating both an opportunity and a challenge. On one hand, you can find a solution that is tailored to your operations mode; but on the other hand, it can be hard to navigate all the options. So here’s our comprehensive guide around the best logistics software to help set you up for success in 2024.
2024 trends to watch in logistics software
The logistics software industry is in a state of rapid change. In 2024, several key trends are shaping the landscape.
1. Data-driven decision making
According to insideBIGDATA, driver mistakes are the most common issue facing last-mile delivery companies. And according to Shopify, every failed delivery attempt costs $17.20. That means there are big rewards to reap from having better information and more insight.
Increasingly, logistics software provides reporting and analytics tools to help you improve efficiency in supply chain processes. For example, a report could help you identify which drivers are slower or faster than average, understand what causes failed delivery attempts, or build routes that account for traffic. That in turn helps to improve on-time delivery scores, increase customer satisfaction, and calibrate performance-related pay for drivers.
2. Integrating and automating everything
Seamless integration and automation are now at the forefront of the logistics industry. Modern solutions are designed to seamlessly connect with other platforms and service providers that are critical to your business processes. For example, good logistics software will integrate with e-commerce platforms like Shopify or WooCommerce, so you can automate order fulfillment. That means less manual data entry and a huge reduction in errors.
Logistics automation is most visible in the context of large retailers and warehouse distributors. According to a Mckinsey report, we may even see fully automated warehouses as early as 2030. Imagine autonomous vehicles navigating the aisles, and managers with augmented-reality goggles that let them “see” the entire operation. Warehouse management systems would keep track of inventory levels in real time, while 3-D printers crank out spare parts to order.
So far, so sci-fi. What does all this mean for smaller, local delivery companies? One of the biggest impacts, as we’re already seeing, is on customer expectations. Customers are getting used to fast delivery times and low shipping fees. That makes it more important than ever for SMBs to lean into the technological advantages they do have.
Every little bit counts in logistics, even when your operations are relatively small. Warehouse operations run by robots may not feature in your plans, but any software that helps you automate your operations will give you an edge.
3. Real-time tracking and visibility
Ten years ago, real-time tracking and visibility were nice to have. Now, they’re essential. Companies like DoorDash and Uber Eats have taught customers to expect real-time updates on the status and location of their deliveries. If delivery experience is important for your brand, you want to choose a software that has this as part of their feature set.
4. Cost efficiency never goes out of style
With fluctuating fuel prices and more global supply chain upheavals on the horizon, cost efficiency should be a top priority.
Most logistics management systems now include smart route optimization, which helps businesses reduce fuel costs and minimize delivery times. Route optimization algorithms used to be massive engineering projects that only the biggest logistics companies could afford, but now it’s affordable for small businesses.
Routific was one of the first to offer route optimization to small businesses. Our algorithm has been in development for a decade, and it’s still at the heart of our business, with an entire team dedicated to improving its quality and effectiveness. Our algorithm accounts for historical traffic patterns, driver speed, and a host of other factors to make your routes efficient and cost effective.
5. Scalable, flexible solutions for businesses that need to be nimble
The ability to scale operations up or down quickly is vital for small businesses, especially if they’re exposed to demand peaks during high shopping seasons like Valentines Day or Black Friday. Logistics software that offers scalability and flexibility ensures that businesses can adapt to fast-moving market conditions.
For example, if you need to add new drivers for the holiday season, you want logistics software that drivers can learn quickly. You also want to be able to handle increased delivery volumes without impacting your current dispatch process.
6. Customer satisfaction still comes first
The customer experience has become a central focus for last-mile delivery companies. Logistics software can help by giving your customers more control and visibility over their deliveries. Look for features like precise delivery windows, proof of delivery, and real-time tracking.
7. IoT and other emerging technologies
The integration of emerging technologies is driving innovation in logistics software. For example, Internet of Things (IoT) devices and sensors are being used to track the condition and location of goods during transit. This can be essential if you own your own fleet, helping to keep maintenance and insurance costs low.
Mobile apps are also worth noting here. Driver apps are becoming the norm, not the exception, for small delivery operations, and are now easy to get on both iOS and Android. The best driver apps are linked to route planning and delivery management software, so that the benefits flow to the entire operation.
The final thing to note is that all this software is now cloud-based, and ideas like “implementation” and “upgrades” are a thing of the past. Modern apps are something you just use, and they’re constantly being upgraded. All of this makes streamlining end-to-end deliveries easier than ever before.
Top logistics management software: Summary reviews
Our star ratings and reviews are based on user feedback on Capterra as of December 2023. The pros and cons mentioned are a summary of common user experiences, but may vary based on individual business requirements and usage. Be sure to visit each company’s Capterra profile for more detailed user reviews and the latest information on each logistics software solution. And always use the free trial, or ask for a demo!
With that said, here’s our pick of the leading logistics solutions for 2024.
Routific was an early entrant to the logistics software market, and has focused heavily on ease-of-use and design. We’ve also put a lot of time and investment into our route optimization algorithm, with 10+ years of development and a dedicated algorithm team. Accurate predictive ETAs and efficient routes ensure your cost-per-delivery is profitable, and our delivery management features keep your customers happy. Our pricing scales with you, meaning small fleets of just two or three vehicles will be a great fit for Routific.
Because of our accurate ETAs, we are a great option for companies that need to deliver at a specific time like groceries, flowers, or other perishable goods. On the other hand, our model doesn’t service on-demand deliveries, like restaurants, well.
One piece of feedback we often hear is that we don’t scale well with larger fleets. We’ve been working hard to change this. We recently launched an updated version of our software in beta. This is a new and improved version of Routific. If you have X or more vehicles in your fleet and would like to try Routific [beta], get in touch via our chat or at support@routific.com.
Pros:
Enhanced customer experience with precise ETAs.
User-friendly interface minimizes learning curve.
Advanced route optimization algorithm that lowers cost-per-delivery.
Affordable pricing for SMBs.
Cons:
Optimizes for cars, cargo vans, and small trucks only
Limited customization options for advanced users, like barcode scanning.
Doesn’t support on-demand or pickup/dropoff delivery models.
Onfleet calls itself the world’s most advanced logistics software provider. It offers a host of features including advanced analytics, barcode scanning, and real-time tracking. It also offers a range of API integrations for companies looking to build an integrated tech stack. With a starting price of $550 USD / month, it’s best suited to companies with at least a handful of delivery vehicles, and larger retailers like GAP, Kroger, and Save On Foods.
Pros:
Advanced analytics and reporting for data-driven decision-making.
Real-time tracking provides visibility into deliveries.
Integration capabilities with other software systems.
Dispatcher <> driver live chat inside driver app.
Supports on-demand deliveries and barcode scanning.
Route4Me was one of the first logistic management software products for SMBs on the market. The platform includes a robust set of features for both operational efficiency and delivery management. But like many legacy systems, the platform is clunky and some features have a steep learning curve. Additionally, their pricing model is based on add-on packages. The pricing starts at $239 / month, but if you want more than their basic package that number quickly goes up.
We’ve also found that their ETA estimates are unrealistic. For example, on one route section that Routific and Google Maps both estimated would take 18-19 minutes, Route4Me estimated just 10 minutes. Under-estimating journey times can lead to late deliveries and a bad customer experience.
Pros:
Dynamic routing and re-routing for optimized routes.
Real-time tracking keeps customers informed.
Scalable pricing tailored to individual business needs.
Reliable customer support and training resources.
Cons:
Poor quality route optimization.
Occasional delays in syncing data between devices.
Advanced features may require additional training.
Customization options can be limited in some cases.
OptimoRoute offers logistics management for mobile workforces and service businesses. Just like delivery software, OptimoRoute offers route optimization, live tracking & ETAs, and a driver app. It also offers service-based business features like optimizing routes that factor in service stop duration and client preferred schedules. It also offers route optimization for long haul trucking or overnight deliveries.
Pros:
Robust optimization algorithms for mobile workforce routes.
Real-time tracking enhances visibility into operations.
Integration with popular business software.
Flexible pricing based on the number of routes.
Cons:
Slightly steeper learning curve for new users.
Advanced features may require additional training.
Limited mobile accessibility in some cases.
Bringg
Capterra rating: ★★★★☆ (4.8/5) Pricing: Available upon request
Free trial available: No
Bringg distinguishes itself with high scalability and customization, best suited to medium to enterprise companies. It offers both fleet & driver management as well as multi-carrier management for logistics companies. The flexibility of Bringg, coupled with its extensive integrations, makes it a standout choice for businesses with specific requirements and who need warehouse management systems (WMS) like time-on-site calculations and dynamic order fulfillment triggers. Bringg excels at supporting wholesale grocery, appliance, furniture, and white glove deliveries.
Pros:
High scalability for businesses that are growing quickly or already have large operations
Extensive customization options, particularly for appliance, furniture, and wholesale grocery delivery.
Seamless integrations with existing software systems.
Bringg’s Delivery Hub has built-in partnerships with over 250 carriers.
Cons:
Steep learning curve, especially when delving into customization.
Complexity may not suit very small businesses.
Inefficient route optimization, leading to higher costs (especially at scale).
Combining transportation management with a freight marketplace, Shipwell is ideal for large enterprises needing extensive shipping solutions. It also is a great solution for third-party logistics shippers. Users commend its comprehensive features, including route optimization and freight management solution. As such, Shipwell isn’t a great choice for small fleets.
Detrack is delivery management software that improves operational efficiency and customer satisfaction. With its GPS tracking, real-time updates, and route optimization features, Detrack makes it easy to keep track of deliveries and ensure that they are made on time and within budget. Detrack is scalable and serves both small and large fleets.
One feature that sets Detrack apart from other logistics software for SMBs is its GPS tracking. Driver safety is essential for preventing accidents and maintaining a good company reputation. Unfortunately, it can be difficult to monitor driver behavior when you have a large fleet of vehicles.
Vehicle tracking can help with this by providing real-time data on how your drivers are operating their vehicles. You can even set up warning notifications for speeding and other behaviors.
However their integrations are limited mostly to Zapier and many users have a steep learning curve to get started.
Pros:
Affordable pricing, suitable for SMB budgets.
Real-time tracking enhances visibility into deliveries.
Customizable notifications for customers.
Responsive customer support and resources.
Cons:
Limited advanced features compared to some competitors.
Steep learning curve mentioned by some users.
Occasional glitches reported in the user interface.
Tookan is a holistic logistics management solution that caters to a wide range of delivery models, including pickup/drop off and on-demand deliveries. The challenge with Tookan is that it tries to do it all, meaning it has a large feature set, but may lack in depth functionality. However they offer some unique features. While most logistics software offers a driver app, Tookan also offers a white labeled customer app which allows customers to place orders and track deliveries.
Unfortunately there are quite a few reviews that mention downtime, bugs, and poor customer service.
Pros:
Flexible API and webhook options for extensive customization.
Robust functionality for efficient operations.
Real-time tracking keeps businesses and customers informed.
Scalable pricing based on the number of agents and tasks.
Cons:
Occasional glitches reported in the mobile app.
Learning curve for some advanced features.
Feature set caters to everyone, but doesn’t serve one audience well.
Lots of complaints about customer service.
Key features to look for in logistics software
Ok, so we’ve given you an overview of the top logistics providers, but how do you evaluate them for your business? When considering your software options, small businesses need to look for a handful of must-have features, along with features that cater to your unique delivery model.
Table stakes
Logistics management software should include at least the following features. Not all of them will be be available on the base pricing tier — SMS notifications, for example, will come at an additional cost
1. Route optimization
This is the #1 feature needed to make profitable deliveries. Not all platforms will offer the same quality of route optimization, though. Look for accurate ETAs and dense routes (ie. routes that maximise the number of stops). Avoid platforms that deliver tangled, overlapping routes, which often cause driver pushback. Pay special attention to which factors each platform accounts for with its route optimization algorithm. For example, traffic history, driver breaks, reloads at depot, etc. You want to pick a model that is built for your use case.
💡 Pro tip: Use a standard set of delivery stops, ideally a real sample from your own business, to evaluate each different logistics software option.
2. Real-time tracking and visibility
Knowing where your deliveries are critical to great customer service. Look for live GPS tracking, or at the very least locations that update whenever a driver checks in at a delivery stop. If something is off track, this real-time visibility enables you to find a solution fast, and keep your customers in the loop. The alternative is only discovering the problem hours after it’s happened, at which point your customers are unhappy and you’re doing damage control.
4. Customer notifications
Every year this becomes more and more important. As a last-mile delivery company, you likely can’t offer the same speed of delivery as a large retailer like Walmart or Amazon. This means you need to compete in a way they can’t easily do; and that’s with exceptional customer service, including notifications when deliveries are on the way, nearby or completed. That’s doubly true if you deliver perishable items like groceries or flowers.
5. Proof of delivery
While you strive for a great customer experience, mistakes happen. Proof of delivery (POD) like photographs or signatures create a paper trail, and may help a customer find a package that’s been left in an unexpected place.
6. Ease of use
We can’t emphasize this one enough. Small business teams wear many hats and don’t have time to waste learning complicated software. Especially when there are easy-to-learn platforms like Routific ;)
7. 5-star customer support
Managing deliveries is time sensitive. So if you have an issue, you need fast resolution — not to get stuck in a loop with a bot or outsourced call center agent who doesn’t have the authority to actually do anything. Check reviews carefully for customer service issues — software with fast response times and quality customer service can mean the difference between resolving an issue in a few minutes vs a couple days.
What makes each software unique?
Routific: Top-of-the-range route optimization and enhanced customer experience tools, like precise delivery windows.
Onfleet: Advanced analytics & reporting features, robust integrations, and barcode scanning. Recommended for larger fleets.
Route4Me: Dynamic routing and re-routing, beneficial for businesses with frequently changing schedules.
OptimoRoute: Mobile workforce management platform, perfect for service businesses like pool cleaning and appliance repair. Also offers long-haul and overnight route optimization, not just local deliveries.
Bringg: In addition to logistics management for large fleets, it also offers a Salesforce CRM integration and multi-carrier management for logistics companies. Recommended for enterprise resource planning.
Shipwell: Combines transportation management system (TMS) with a freight marketplace, ideal for enterprises needing extensive shipping solutions.
Detrack: GPS vehicle tracking to support fleet management and maintenance. Good fit for companies that own their own fleet.
Tookan: Flexible API and webhook options, allowing for extensive customization suitable for tech-savvy businesses.
SMB vs. enterprise logistics management software requirements
SMB software needs
Small and medium-sized businesses generally benefit more from user-friendly tools, simple integration processes, cost-effective solutions, and features that enhance customer relationships. They need tools that are easy to implement and manage without extensive IT resources. Software-as-a-service (SaaS) options are almost always a good choice.
Bear’s Blooms is a flower subscription service with a twist — instead of a ready-made vase, its customers get a box of fresh flowers each week that they can arrange themselves.
Started by siblings Tess and Parker Atkins, this family business has exploded in popularity and now delivers hundreds of flower boxes every day across four Canadian cities.
They needed logistics software that included route optimization, to grow with them. They chose Routific for several reasons:
Cost savings: The company reduced fuel costs by optimizing routes, ensuring that each delivery was made with maximum efficiency.
Enhanced customer experience: Precise delivery windows and real-time tracking improved customer satisfaction, leading to repeat business and positive reviews.
Increased efficiency: The software's automation capabilities streamlined the entire delivery process, from route planning to driver assignments.
This case study highlights the impact of choosing the right software, and the impact it has on scaling your local delivery operations.
Enterprise software needs
Large enterprises, on the other hand, have complex logistics operations that demand robust scalability, extensive integration capabilities, advanced analytics, and comprehensive features. These features often extend beyond delivery management or route optimization, such as shipment tracking, procurement, warehouse management, and inventory control. They may also require solutions capable of handling high volumes of data and complex supply chain management (SCM) scenarios.
This is where massive ERP systems like Oracle and SAP find their sweet spot. They’re powerful and robust — but also complex to implement and manage, usually needing teams of full-time specialists. Their SMB products can’t replicate the efficiency and simplicity of tools that are built from the ground up with the needs of SMBs in mind.
Conclusion
Logistics software evolves year over year. New capabilities and technologies are constantly being released, offering small delivery businesses opportunities to automate, reduce costs, and improve customer service. Selecting the right solution is critical for the success of SMBs in 2024.
Emma is a B2B SaaS, last mile delivery, and delivery management writer. With 10+ years experience working with small business and early stage startups, Emma ties delivery challenges back to holistic strategy and storytelling.
Frequently Asked Questions
How can I implement delivery management software successfully in my business?
The successful implementation of delivery management software hinges on strategic planning and execution.
Begin by assessing your current delivery processes and identifying areas that require improvement.
Set clear objectives and goals for the implementation, such as reducing delivery times or enhancing order accuracy.
Choose software that aligns with your business needs and goals.
Involve your team by providing training and involving them in the implementation process.
Ensure a smooth transition by migrating relevant data from existing systems to the new software.
Test your new workflows to identify and address any issues before full deployment.
Continuously monitor the software's performance and gather feedback from users to make necessary adjustments.
Offer ongoing support and training to your team to maximize the software's benefits.
Effective change management is crucial for a successful implementation that results in improved efficiency and customer satisfaction.
What are some tips for optimizing my delivery routes and schedules with logistics software?
Every business is different, but a few tips that you should consider are:
Confirm the route optimization platform you’re using accounts for general factors like traffic patterns and delivery windows, as well as use-cases specific to your business like on-demand deliveries or routing multiple drivers to a single location for a service call.
Route optimization doesn’t just happen at the beginning of the route. Monitor real-time data and adjust routes dynamically throughout the day to account for issues your drivers face while en route.
Implement geofencing and location tracking.
Do you know if certain parts of the city always have traffic or if it takes longer to deliver to certain buildings? Use historical data to adjust your routes as you learn about your customers, city, drivers, and routes.
Maintain accurate maps and address databases. This one might seem simple, but it’s the bedrock of good quality routes.
Communicate with drivers using mobile apps. Stay in touch with your drivers so you know if you need to adjust routes or contact your customers to proactively fix issues.
Continuously analyze and refine routes based on metrics.
How do I choose the right delivery management software for my business?
Selecting the appropriate delivery management software is no small feat. Start by identifying your primary delivery challenges. We recommend creating a standard template that you use to evaluate each option, including a sample list of orders for you to compare route optimization quality.
If you’re not sure yet which features you need, do demos with several different providers to understand the different use cases they serve. Not all logistics software are built for all industries or fleet sizes. So explaining your logistics processes will help you zero in on the right partner. You’ll also want to confirm that the chosen software integrates seamlessly with your existing systems.
Lastly, consider the long-term benefits and return on investment (ROI) to make an informed decision that meets your goals and enhances customer satisfaction. The cheapest option isn’t always the most cost-effective if you regularly run into issues with the platform.
What are the benefits of using logistics software for small businesses?
Logistics software provides small businesses with a range of advantages. It enhances route optimization, reducing fuel costs and expediting deliveries. Real-time tracking capabilities elevate customer service by offering shipment visibility. And the software improves order management, preventing both stockouts and overstocking.
The means order processing becomes streamlined, resulting in increased accuracy. Data-driven decision-making becomes possible, leading to greater efficiency and cost reduction. Ultimately, it ensures better resource utilization, including vehicles and drivers.
What are the different types of logistics software?
The different types of logistics solutions include route optimization software, warehouse management systems (WMS), inventory management software, transportation management systems (TMS), and supply chain management tools. Each type serves specific functions, contributing to the overall efficiency of logistics operations.
What is logistics software?
Logistics software refers to specialized applications designed to streamline and optimize the various processes involved in the management and execution of supply chain operations. These include route planning, inventory management, real-time tracking, and data analytics.
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