Supply Chain

Applying SaaS solutions into Logistics: What are the options?

February 04, 2022 • 889 Views • 12 min read

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Bohdan Vasylkiv

CEO & Co-Founder

Software as a service is simply hosting software programs from a centralized place online and delivering them via the internet like a service. It eliminates the requirement for legacy software, which must be installed, executed, updated, and maintained from a local workstation under your control and with physical access. Everything is accessed through the internet via a server that the SaaS provider maintains elsewhere. Many organizations offer their services just through an internet browser, making the whole process considerably lighter.

Because your SaaS provider manages all security, performance, and maintenance, you have minimal care on your end. This relieves you of the obligation and resources necessary to handle multiple and sophisticated systems. But besides that, let’s discover what advantages could bring you SaaS solutions.

Why using SaaS solutions is beneficial?


Taking into account Mobile Resource Management (MRM), SaaS solutions are on-demand, pay-as-you-go, simple to adopt, and adapt to the demands of companies of any size or sophistication.

One of the most significant advantages of using a SaaS provider is the amount of accessibility you receive. Because everything is done online, you can usually view your panel from anywhere. In reality, the bulk of SaaS companies also include some kind of mobile app for all of your remote work needs.

They are intended to automate and coordinate complex logistical challenges using an integrated, end-to-end MRM strategy. This comprehensive feature provides optimal routing, cost savings, and considerable increases in asset use.


SaaS solutions, because they are supplied as a service, can be simply scaled up or down to meet the demands of the business without requiring infrastructure adjustments. The service component of SaaS provides ongoing assistance to operators from initial planning through execution to analysis.

Maintaining a complete warehouse or supply chain while keeping your server operational and without serious difficulties practically around the clock is nearly impossible. So, since many of the best SaaS companies can guarantee 99.9% uptime – it is worth applying.


SaaS solutions are typically housed in cloud settings that are scalable and have connections with other SaaS products. In comparison to the old paradigm, you do not need to purchase a new server or software. You merely need to activate a new SaaS product, and the SaaS provider will handle server capacity planning.

Furthermore, you will have the ability to scale your SaaS consumption up and down based on your individual needs.

SaaS solutions in Logistic Management

Lately, the software has made its way into the freight shipping industry. The benefits of using SaaS rather than on-premise models are numerous, and they are quickly becoming an industry standard.

When it comes to the supply chain, having more visibility into a process is critical. As a result, SaaS solutions expedite numerous activities in the sector, enhance efficiency, improve data management procedures, reduce operational difficulties, eliminate inaccuracies, and boost complicated analysis processes by monitoring freight shipping details, and performing research. SaaS solutions provide carriers with on-demand access to extensive route planning capabilities, allowing them to avoid the substantial capital cost investment and in-house IT manpower required for complex system integration.

Depending on the services offered by a firm, SaaS solutions for the supply chain processes might take numerous shapes. Previous logistics solutions focused on a single function and were intended to be used as a stand-alone technology for order management, parcel tracking, fleet management, enterprise resource planning, warehouse management, and customer relationship management.

But nowadays, Transportation Management Systems (TMS software) supports the capture and dissemination of all past records, allowing for the creation of accurate reports and insight into logistical operations. With SaaS TMS software, the real-time connection could be established, and the outcome could be enhanced.

TMS Software with Integrated SaaS

A standard TMS software captures data regarding products in real-time utilizing API or EDI systems, giving freight forwarders, shippers, and connected third-party with crucial data throughout manufacturers and distribution centers, freight shipping, and clients.

With the additional SaaS integration, TMS software will be an improved version, with effectively planned, executed, and optimized freight shipping. Manufacturers, shippers, distributors, freight forwarders, and logistics businesses apply such a solution to their supply chain processes.

TMS software’s primary aims are to increase freight shipping capacity, bring down costs, and acquire real-time supply chain insight. These objects are met with the wide spectrum of services, TMS software can provide, including parcel tracking, finance administration, freight shipping rating. But besides that, there is also the monitoring of freight forwarders, as well as additional features: automatically picking up the most relevant route and carrier, and comparing available carriers’ pricing and services.

Read also: TMS Workflow: Key Transportation Management System Functions

How to Make SaaS Solutions Work for Supply Chain Processes?

Your feature set will differ depending on whether you intend to construct SaaS transportation software to address a specific issue, or whether you intend to build a multipurpose solution for large companies. Either way, you need to focus on the key features, as well as, pay attention to the technical nuances. Let’s sort out the most important parts.

  • Everything that might affect the route planning must operate precisely.

Each misinformation could lead to errors in supply chain processes. Set up parcel delivery with GPS real-time monitoring. Make sure to adjust the geolocation to the millimeters’ accuracy.

The average time of unloading at the point of delivery, vehicle capacity, the average speed of a car, the length of a working day – all these background factors may influence the route calculations.

  • Do not disregard forecasting.

Shippers who have a top-notch forecasting capability in their logistics system will know what to expect in the near future in terms of demand, supply, pricing, and rates. Larger organizations with business analytics departments require more advanced systems with more complicated algorithms to assure correct production scheduling, minimize financial losses, etc. Thus, building a forecasting system will definitely become a benefit.

Give a chance to the integration of a third-party system. Your solution should be able to communicate with other software solutions that your clients may be using. Even a sophisticated system, however, should have the ability to integrate with third-party services. These might be anything: from accountancy software to the tools for better order management.

  • Build architecture with many levels.

Logistics software that supports a multitier architecture is required for transportation organizations that need to serve several clients at the same time, process massive amounts of data, and collaborate with various 3rd parties. This approach will simplify and offload the workflow.

Challenges When Applying SaaS Solutions into Logistics

Why are shippers and other businesses taking so long to implement transportation management programs, despite their obvious value? The majority’s primary challenge is a lack of technological resources and the ability to keep the system functioning properly as it is. Businesses underestimate how cost-saving such solutions could be, and still doubt because it seems like TMS software wouldn’t cost an effort. But with the SaaS providers, the implementation process could be facilitated multiple times, as well as more time-efficient than the standard manual operations’ monitoring.

Still, we think it’s our duty to represent all the highs and lows of applying SaaS solutions to logistics. So, here is the list of the possible concerns you might find while deciding:

  • Lack of Control: With cloud-based solutions, a third party will own and manage the data flow and reports. A logistics business has very little influence over how the SaaS supplier handles this.
  • Risks regarding safety: The privacy of some data may be jeopardized in cloud-based solutions. Industrial procedures and asset tracking, for example, are now left to a 3rd party.
  • Connectivity Issues: In order to work, SaaS and Apps require an internet connection. The possible loss of data is a problem if the internet is disrupted or goes down. So until the internet issue is fixed, there will be no way to obtain the data.

All these issues might be addressed. The problem with connectivity issues shouldn’t even occur in today’s world, since all the processes are changed to automated ones, and for the data, it is common to be stored on the cloud. Secondly, both a sustainable SaaS provider and a reliable development team (in case of developing a customized solution), could provide you with full security. Security flaws seem to be a very serious risk in today’s world, which is why you need the peace of mind that comes from having all of your company’s critical data handled properly just through a vendor’s cloud-based server.

Last thoughts

Cloud logistics automation benefits all supply chain players, allowing you to quickly address complicated challenges, and its popularity is growing year after year. The logistics and transportation industries already have solutions available in the SaaS market. But the custom solutions give businesses the resources they need to conduct normal logistical chores and manage their business operations in the way they desire, avoiding the need to pay for each new user and extra module.

Our development team can help you make a step ahead to the better version of your supply chain workflow. With our dedication and your requirements, together we’ll be able to build a perfect customized solution for your company. Just fill in the form.

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