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

When 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 hover and deliver orders to customers’ front yards. 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 the logistics industry under increasing pressure. Trips must be planned more efficiently and employees must be able to quickly keep an overview of transport offers and orders at all times.

Even though digitalization in logistics is still progressing very slowly, there are more and more ways to leave the many Excel spreadsheets 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 even online freight forwarders, the number of options for automating freight allocation is increasing.

As in other industries, resistance to platform models is growing in logistics, but expensive and maintenance-intensive in-house SCM software is also being viewed with skepticism. However, web-based logistics software for procurement processes in the transport sector is no longer a thing of the future and is enjoying increasing popularity.

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

Web-based logistics software is usually used on a subscription basis and is therefore ideal for business-related software. Due to the specific characteristics of this service and sales model, web-based SCM software is often much more cost-effective than other models, both to purchase and to use.

Logistics software is considered a key enabler for the digitization of value-added processes. According to Cloud Monitor, more than 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 areas of application were gradually added. In particular, the use in the area of ​​logistics processes, such as supply planning, offers many advantages.

In international companies, many different employees and departments in different locations are often involved in the procurement process. Installing and implementing extensive licensed software on hundreds of computers in different locations is a time-consuming and costly affair. With every new update from the provider or a device replacement on the user side, the implementation is faced with new challenges.

The SaaS model offers the advantage of online application over SCM systems, which means that it does not have to be implemented. This allows the customer to 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 are shifted from the company to the service provider.

Internet-based transport management software also facilitates uniform release, integration and scaling of programs in the cloud, thus ensuring a good user experience on different devices. Thanks to high-speed internet, users can access the service at any time and from any location. All that is required to use SaaS SCM software are internet-enabled devices. This means that there is no need to invest in your own servers.