SaaS logistic
December 15, 2022

The Growing Demand for SaaS in the Logistics Industry

The use of software in the logistics industry helped in streamlining various logistics management tasks. However, there are some challenges associated with on-premise software that SaaS logistics software overcomes. Let’s understand why the logistics industry is shifting from on-premise to SaaS-based solutions.

The size of the global logistics market is huge. As per Global Logistics Market Outlook by Expert Market Research, the size of the global logistics market was $9.53 trillion in 2021. Between 2022 and 2027, the market size will further grow at a CAGR of 5.7% to achieve a value of $13.33 trillion.

While the logistics industry offers tremendous opportunities for companies, it also poses several challenges. In a recent couple of decades, the use of software for logistics management has helped companies to scale while managing their operations effectively.

However, with the advent of the SaaS software delivery model, the use of on-premise software in logistics has become an outdated practice. Today, we can see several SaaS logistics companies offering a wide range of SaaS-based solutions for the logistics industry.

Want Top-Notch SaaS Logistics Software? Let's Discuss Your Project.

Schedule a Call

But why is SaaS becoming popular?

Well, SaaS allows the delivery of software over the internet. Unlike on-premise software, users do not need to install and manage software locally on one or more devices. Also, logistics companies do not need to set up an IT infrastructure to manage the software.

For vendors, the delivery of SaaS logistics software is easy and highly effective. They can expand their customer base with minimal geographical limitations. 

In this blog post, we will discuss why SaaS logistics is trending and various aspects that you need to know if you want to develop SaaS-based logistics software.

Why SaaS Logistics Software is in High Demand?

Compared to on-premise solutions, SaaS solutions are cost-effective and more efficient. These two are the biggest reasons why logistics companies are making a shift to SaaS-based applications for managing their everyday operations.

As SaaS logistics software is easily accessible through the web, companies can try multiple software and choose one that best suits their particular needs. The time required to set up and start using a SaaS application is quite less compared to on-premise software which involves multiple activities, including installation, configuration, and maintenance.

Here are some more practical advantages of SaaS logistics software.

  • Customization

With most SaaS solutions, logistics companies get the flexibility to select features that best meet their needs. SaaS companies offer several customization options so that their software can meet the varying needs of customers.

Additionally, logistics firms have the option to develop a fully-customized and dedicated SaaS software for their businesses.

  • Quick Deployment

SaaS companies can instantly deploy their applications on the cloud, thus making them readily accessible directly via the internet.

There is no need for end users to set up an IT infrastructure to deploy SaaS or cloud-based apps at their end. A SaaS company needs to deploy its software once and it becomes a ready-to-use solution for end users.

  • Ease of Access

SaaS logistics applications are accessible from anywhere. Contrary to the on-premise model, the application and user data is not stored locally on a device but in the cloud.

Get the Best SaaS Logistics Software Development Services. Let's Chat.

Schedule a Call

This allows users to retrieve their application data and configuration on any device. Users do not need to use the same device to access a SaaS application.

  • Tiered Pricing

Most SaaS software follows the tiered pricing strategy to target businesses with different budgets. Under the tiered pricing strategy, a SaaS solution is available at different price plans. 

While the plan at the lowest level of the tier gives access to basic features, the plan at the uppermost level unlocks all the features offered by a SaaS application. This allows users to choose a plan that meets their needs.

  • Scalable

As SaaS applications are deployed in the cloud, they are easily scalable. Whether the need is to integrate more features or accommodate the increase in the number of users, a vendor can get more IT resources for their application almost instantly. Cloud service providers allow software vendors to scale up or down with ease. This is a major reason for vendors to focus more on SaaS logistics software development.

  • Hassle-free Maintenance

One more notable advantage of SaaS software is that they are easy to maintain compared to on-premise software. As the application is hosted centrally on a cloud server, the vendor can roll security updates or new versions quickly. The end users will access the updated version of the application without the need to put in any significant effort.

Also, vendors can perform a rollback easily in case there’s an issue with the updated version of the application.

Why Develop Logistics SaaS Software?

SaaS is gaining a lot of traction in the logistics industry, all thanks to the unmatched benefits that it offers. SaaS has completely revolutionized the way of accessing and delivering software. 

According to a report by Market Research Future, the logistics software market will grow to reach a value of 17.76 billion in 2030. Evidently, there are lots of business opportunities in the logistics software market. Vendors can reap good profits by developing different SaaS applications for logistics management.

We Develop Feature-rich SaaS Logistics Software. Get One for Your Business.

Schedule a Call

Additionally, logistics companies can develop custom SaaS solutions to streamline their operations and improve the overall workflow. They need to consult a SaaS logistics software development company. One added benefit of developing custom SaaS software is that a logistics company can fulfill its unique needs by adding features as and when needed. 

Popular Types of SaaS Software for Logistics

Whether you want to start a SaaS business or create a SaaS-based application for your logistics business, it’s important to get familiar with the popular types of SaaS logistics software.

1. Warehouse Management System (WMS)

WMS or warehouse management system assists in streamlining various warehouse operations. It allows a logistics company to track all the goods stored within a warehouse and automate invoice and bill generation. Locating goods even in a large warehouse becomes quite convenient with a warehouse management system.

2. Fleet Management System (FMS)

For companies looking to manage their fleet effectively from a single location, a fleet management system is the best bet for them. Fleet management involves various tasks, such as vehicle tracking, route planning, driver schedule creation, regular vehicle maintenance, and vehicle diagnostics.

A fleet management system makes use of GPS technology to track the live locations of vehicles and share real-time data with the fleet manager.

3. Inventory Management System (IMS)

An inventory management system provides a business with a high-level overview of the whole inventory. A company can fully rely on IMS to track its stocks. Such a system provides all the data needed to make well-informed decisions when it comes to buying, restocking, and selling the stocks of raw materials, unfinished goods, and finished goods.

4. Transportation Management System (TMS)

With the help of a transportation management system, companies can book and schedule shipments, ensure timely delivery of products, manage multiple carriers, and manage transportation expenses. SaaS TMS is widely used by many companies to improve the efficiency of shipping goods.

Key Features to Integrate into Your Logistics SaaS Software

Following is a list of the most important features of logistics SaaS software:

1. Real-time Notifications

For any company, information is the key to making better business decisions and achieving better growth. Also, it’s essential that the information is available in a timely manner, otherwise, even a small delay can snatch a good opportunity.

So, the real-time notification feature becomes a crucial part of any logistics software. Whether it’s about the delivery of a shipment, wrong delivery, or stock refiling, the business should get updates in real-time as app notifications.

2. Price Calculation

To generate accurate invoices, price calculation is critical. A business may need to consider various expenses to generate the final invoice. Additionally, businesses may have to calculate overall expenditure and profit margins, and for that, an in-built price calculator proves highly useful.

3. GPS Tracking

GPS tracking is an essential feature that allows a business to track shipments or vehicles directly from the SaaS application. Staying updated about moving goods can help in better work management and customer satisfaction. Also, GPS tracking makes it possible for businesses to know if there’s an emergency, such as a vehicle breakdown or an accident.

4. Record Keeping

Documentation and record-keeping are among the most crucial tasks for any logistics company. However, both of them require a lot of time and effort. There are several records related to bills, invoices, customers, products, transportation vehicles, etc. that are not easy to manage.

Hire SaaS Logistics Software Developers. Let's Connect.

Schedule a Call

A logistics SaaS application can easily automate the process of record-keeping. Companies can scan physical documents and store their digital copies within the software. They can also add records directly in digital form and analyze them easily to extract useful insights.

5. Third-Party Integrations

Due to the complexity of the logistics business, companies may need to use multiple applications to streamline their work. However, jumping from one tool to another is not only time-consuming but also hampers the productivity of employees. Thus, a SaaS solution that integrates with other apps is what logistics companies prefer these days.

Third-party integration is an essential feature of any SaaS logistics software. Also, the more the number of supported third-party apps, the better it is for a SaaS solution. Some of the most popular third-party tools available for integration include Google Drive, Gmail, Zendesk, and Ship Hawk.

How Teqnovos Helps You Develop Robust SaaS Logistics Solutions?

Developing SaaS solutions from the ground up is a lengthy and complex process. If you have little to no experience in developing SaaS software, it’s better to consult a leading SaaS development company.

Teqnovos is your trusted partner for developing feature-rich and high-performance SaaS solutions. We have a dedicated team of SaaS developers who can help you through every stage of the SaaS logistics software development process, right from requirements gathering to final deployment.

We build custom SaaS logistics solutions to help your business with transportation management, warehouse management, fleet management, order management, route planning, vehicle tracking, and much more.

Here are some of the best reasons to opt for SaaS logistics software development services offered by Teqnovos.

  • Quick development and delivery of reliable SaaS solutions.
  • In-depth knowledge of a wide array of software development technologies.
  • Dedicated customer support team to resolve technical issues quickly.


In a nutshell, there is a significant demand for SaaS solutions in the logistics industry. Not only SaaS-based logistics solutions are cost-effective but highly useful in streamlining the processes for businesses.

The growing size of the logistics industry and demand for SaaS solutions brings a lot of opportunities for software vendors. It is the right time to figure out the needs of the logistics companies, develop innovative software, and deliver software over the cloud as SaaS.

Additionally, logistics companies have the option to partner with a SaaS development company, like Teqnovos, to build custom SaaS solutions that meet their particular needs.

Let’s take your business to the next level with our development masterminds.