logistics industry

Introduction to Optimization of Logistical Processes

Logistics, as we all know, is the backbone of the global economy. That means it is essential to always keep its processes running smoothly and efficiently. But even logistics can have optimization issues which can be solved with custom logistics software.
logistics optimization

Common Logistics and Transportation Issue

Logistics and transportation businesses are prone to having issues just as businesses from any other industry. At some point, any logistics company can run into such problems as inaccurate inventory management or inefficient transportation, which are solvable by proper logistics software. In this article, we are going to research the most common issue that logistics businesses face and share our experience in custom software development for logistics and the solutions we found to resolve this issue.

The most common issue that arises within logistics and transportation businesses is the lack of efficiency and optimization in their internal logistics processes. This issue mainly occurs when a company has outdated software that requires a lot of manual effort to function properly. But for each process that lacks efficiency exists a different type of software, functions of which we are going to explain.

Transportation Management System

Starting with transportation management systems or transportation management software (TMS), which are the foundations of any logistics and transportation business. TMS software consists of the main features that are needed for optimizing logistical processes. This includes route planning, cargo tracking and easier payment processes. Increased real-time visibility of transportation operations that TMS provides increases the ability to make financial and logistical decisions, which allows for better optimization of general logistics processes.

Warehouse Management System

The next type of transportation and logistics software is warehouse management systems, or warehouse management software (WMS), depending on the size and complexity of logistics operations. WMS provides businesses with warehouse operations management, which includes inventory management and order processing. But often, general-purpose warehouse management systems do not provide all the required features that a business needs, leaving a multitude of manual processes that should have been automated in the first place. That is why we recommend getting a custom WMS, to perfectly fit the size and complexity of your business, allowing for better performance and, consequently, more rapid business growth.

Supply chain management system

Supply chain management systems could be considered a cornerstone of logistics forecasting. A supply chain management system makes it possible to realistically plan the delivery of supplies based on their consumption and reduce the risks of stockouts and overstocking. This type of logistics software is always useful in all business partnerships, for any type of supplies, but it is the most important for logistics businesses connected to grocery stores. In this case, the mentioned issues are critical and must be minimized or completely resolved, as it could sometimes lead to a complete loss of profits for both parties.

Among types of logistical software also exists software that improves the quality of life and provides businesses with more options for their logistics operations. For example, automated storage and retrieval system, which in combination with hardware may completely automate warehouse processes. Or order management system, which improves communication and sales with other B2B customers. For any possible needs, logistics and transportation software development has its solutions.

diatom logistics software

Our company, Diatom Enterprises has its roots as a custom logistics software development company. Over the past 20 years, we provided a multitude of logistics and transportation businesses with custom software solutions, as well as various businesses from other industries. Make sure to find out more about our software development services and contact us to bring your project to life.