The new standard for supply chain processes - web-based logistics software

If you imagine the future of supply chain processes today, many people have innovations like self-driving trucks in mind. Many also think of drones that bring orders pending to the front yard of the customers. The potential of digitizing supply chain processes using logistics software is often underestimated, as is the relevance of these innovations. The shortage of skilled workers is putting increasing pressure on the logistics industry. Trips have to be planned more efficiently and employees have to be able to quickly keep track of transport offers and orders at all times.

Even if digitalization in logistics is still progressing very slowly, there are more and more possibilities to leave the many Excel tables and faxes behind. Supply chain processes such as transport procurement can now be organized on the web with just a few clicks. With large logistics platforms, freight tenders and freight consultants and online freight forwarders, the number of options for automating freight allocation is increasing.

As in other industries, the resistance to platform models is growing in logistics, however, expensive and maintenance-intensive in-house SCM software is being viewed critically. Web-based logistics software for procurement processes in the transport sector is no longer a dream of the future and is enjoying growing popularity.

Many of these web-based SCM systems, often also referred to collectively as “Software-as-a-Service” (SaaS), can be made available over the Internet immediately - without any local installation. In the cloud, a company can quickly and easily use computing resources over the Internet as needed.

Web-based logistics software is usually used on a subscription basis and is therefore ideal for software used for business purposes. Due to the specific properties of this service and sales model, web-based SCM software is often much cheaper than other models in terms of both purchase and use.

Logistics software is an essential enabler for the digitization of value-adding processes. According to the Cloud Monitor, over two thirds of German medium-sized companies were already using Cloud SCM systems in 2016. While CRM and accounting solutions initially dominated the market for SaaS applications, other application areas were gradually added. Above all, the use in the area of ​​logistical processes such as supply planning offers many advantages.

In internationally operating companies, many different employees and departments at different locations are often involved in the procurement processes. The installation and implementation of extensive license software on hundreds of computers in different locations is a time-consuming and costly affair. With every new update from the provider side or a device exchange on the user side, the implementation is faced with new challenges.

The Saas model offers the advantage of online application compared to SCM systems, which means that it does not have to be implemented. As a result, the customer can save a large part of the acquisition and operating costs. The service provider takes over the IT administration including services such as maintenance work and updates. The IT infrastructure, including all administrative tasks, is thus outsourced and the service recipient can concentrate on optimizing their logistics processes. Thanks to the Cloud SCM systems, numerous costs and risks shift from the company to the service provider.

Internet-based transport management software also facilitates uniform release, integration and scaling of the programs in the cloud and thus ensures a good user experience on different devices. Thanks to the high-speed Internet, users can access the range of services anytime, anywhere. To use SaaS SCM software, only internet-enabled devices are required. Accordingly, there is no need to invest in your own server.