Logistics software: what it is, what it does and options

Do you know what logistics software is? This resource was developed to reduce the manual work and rework that pile up in the transport operation.

Investing in this type of technology tends to organize processes and make results more predictable, with less information lost in loose spreadsheets. Fewer errors and greater control over the operation's cost are among the benefits generally attributed to fleet systems.

It is worth saying right away what no software does on its own: it does not replace data collection on the ground. Someone needs to inspect the vehicle, measure the tire and record the service in the workshop. The system organizes, cross-references and returns this data in the form of decisions — but the data still comes in through a person.

Below, learn more:

• What is logistics software?
• What does logistics software do?
• What are the logistics software options?
• What is logistics software for?

What is logistics software?

Logistics software is a technological tool, including systems and apps, aimed at organizing and optimizing operational processes.

The checklist is one example. It went from printed sheets to Excel spreadsheets until it reached the electronic checklist system — and the difference between one stage and the next is not only in the medium: it is in how much consultable history remains after the inspection ends.

One of the main goals behind the emergence of logistics software is to control the available and necessary resources in order to maintain a good workflow and keep the company growing constantly.

This is pursued through the automation of repetitive tasks, the standardization of records and the reduction of human error it provides in the inventory, material purchasing and sales, shipping and maintenance departments and, of course, in freight transport and in the transport of goods and raw materials.

Notice the verb: software reduces human error; it does not eliminate it. A poorly filled-in field still goes in wrong — the difference is that, in a system, you can know who recorded it and when, which makes the error correctable instead of invisible.

What does logistics software do?

It offers greater control over operations

Systems usually concentrate the information collected in the routine in a single database, without the need to export it as new demands arise — one reason that makes it one of the major logistics trends.

With it, the control of activities becomes more efficient: records are available for consultation as soon as they are entered, and analyses are just a few clicks away, instead of depending on someone consolidating spreadsheets at the end of the month.

It optimizes processes

Software is an innovation in logistics that reduces the manual work of transcription and helps keep information consistent — as long as the registration data is well set up and the team records what actually happens on the ground.

With it, the working method tends to become simpler, since each activity takes less time. In fact, many tasks become automated by the digital tools that come with the use of different systems in transport operations.

This is where the implementation mistake usually lies: adopting a system in the hope that it will fix a process that does not yet exist. If the fleet has no defined inspection routine, the software starts recording the absence of a routine more precisely — and nothing more.

It improves internal communication

With tire management software, for example, each inspection carried out goes straight into the system as a record that other areas can consult. Work orders are generated at the moment of the inspection and reach the team of mechanics (or the workshop) without depending on a phone call or on a piece of paper that has to cross the yard.

In other words, communication becomes faster and less prone to noise.

For the logistics process, this makes all the difference, since agility in decision-making represents a real competitive advantage. Both from the perspective of reducing the time it takes for a repair to happen and from that of reducing costs.

It even helps generate knowledge to make smarter purchases, whether of tires or vehicles, or to hire drivers who are more cooperative with the rules set by the fleet policy.

It integrates information

Integrating information allows the manager to keep close track of how activities are progressing and to identify possible bottlenecks that hinder results.

Technologies such as fleet management software bring together, in one place, the history of each asset and its components: the inspections performed, the services carried out in the workshop, the parts replaced and the cost of each of these steps.

Data integration is essential for being able to view the fleet's information as a whole. After all, all departments are related, right? Tires influence the performance and upkeep of vehicles, just as the vehicle's operation plays a role in a driver's productivity.

Good logistics software will offer integration made easier by its developers. It is worth confirming this before signing: is there an API available? Is there documentation? Who develops and who pays for the integration with the ERP the company already uses? These are questions that are cheap to ask at the start and expensive to find out about later.

It reduces operating costs

This is undoubtedly one of the most cited advantages of investing in logistics software. Every company wants to reduce operating expenses, but this is not always possible.

As we mentioned in some of the points above, greater control and standardization of processes, and the reduction of time, inputs and labor, can bring this cost reduction to the fleet.

The size of the gain, however, varies with the starting point. An operation that already controls its own costs well tends to find less room than one that still depends on spreadsheets and memory — and that is why it makes sense to measure the cost per kilometer before implementing, so as to have something to compare against afterwards.

What are the logistics software options?

Among the options on the market today, we can find solutions for different areas of fleet management. Among them:

• CRM (Customer Relationship Management): organizes customer relationships throughout the lifecycle, including lead management, sales forecasts and communications with potential customers.
• ERP (Enterprise Resource Planning): brings together modules aimed at specific areas of the business, such as finance, HR, manufacturing, supply chain, services and purchasing, so that these areas work in an integrated way.
• TMS (Transportation Management System): automates day-to-day tasks, such as issuing mandatory documents for transport and registering freight rates.
• WMS (Warehouse Management System): supports warehouse operations through system-directed activities and can connect warehouse execution with suppliers, transport and inventory.
• Delivery tracking and monitoring software: a category sold by companies specializing in vehicle and logistics tracking; these systems allow the shipper and the end consumer to keep track of the order's location.
• Maintenance management system: controls the fleet's entire maintenance routine, generating work orders linked to an inspection or on a stand-alone basis. It also provides a view of quotes and reports of services carried out over a period.

A single tool rarely covers all these fronts well. The most common approach is for the operation to choose the category that solves its biggest problem — and require it to talk to the others, instead of swapping six systems for just one.

What is logistics software for?

It works as a facilitator of the transport operation's routines, bringing agility and automation to tasks that would otherwise be monotonous and time-consuming. In addition, it makes it easier to organize data and generate knowledge for the fleet manager's decision-making.

You have probably heard of process automation in the logistics sector. But what does that mean, exactly?

It is common for the management team to evaluate whether the decisions made are in fact effective. To do so, it is necessary to survey data and compare the information.

Fleet systems reduce the hours and paperwork used for this and other activities that would previously have been performed manually.

Logistics software serves to simplify day-to-day tasks, speed up processes and improve the company's operations and deliveries. Check out its advantages:

• Fewer errors and less rework;
• Improved delivery quality;
• Creation of more efficient strategies based on the company's profile.

We should remember that investing in this type of logistics technology can take the company to another level of control. Do you know why?

It is through fleet management software that processes come to have a defined record, deadline and person responsible — and it is this record that underpins any promise of deadlines and efficiency made to the customer.

Before closing a contract, three questions usually separate the tool that will be used from the one that becomes an idle cost: who feeds the system day to day, how much time this takes from the people already in the operation and what happens to the history if the company changes suppliers.

Now that you know what logistics software is, see which technologies are worth including in your planning by downloading our infographic on fleet technologies (in Portuguese)!