Logistics Mobile App Development: Types, Cost, and All to Know About It

Logistics app development became a chance for many logistics companies to simplify and freshen up transportation operations. This solution enables logistics businesses to almost forget about unpleasant surprises such as inventory and vehicles malfunctioning, ergonomic issues, and supply chain collapses.

For sure, logistics mobile app development requires extra attention to details and potential pitfalls you may encounter during the implementation process. Being aware of it, you can prepare a clear roadmap to create and integrate logistics apps within your business environment.

So, in this article, you’ll learn how to build a logistics app, dive deeper into the benefits this digital solution may contribute to your logistics processes, discover its cost and key functionality modules, and get acquainted with potential challenges to be ready for.

Logistics application is a convenient tool designed to optimize transportation-related operations and storage of goods and streamline and automate earlier manually completed tasks. Besides, logistics apps bring more transparency into the shipment process, minimizing mistrust among customers and misunderstandings between stakeholders.

Primarily associated with logistics and transportation businesses, a wide range of companies may consider the decision to build a logistics app relevant.

Here are the most notable examples of business domains that will benefit from logistics app development:

• Manufacturing. Manufacturing companies have a chance to enhance their productivity through logistics app development and adoption. A convenient digital transportation solution may assist in streamlining the supply chain, enable real-time inventory management, minimize stockouts and overstocks, and optimize production schedules along with good transportation.
• Transportation and Freight. For sure, the first thing that comes to mind when talking about logistics is transportation and freight niche. With the help of a logistics app, transportation companies can enhance their planning and optimization of fuel and shipments timelines, and process shipment data faster, reducing manual errors.
• Agriculture. As with the food industry, the primary goal in the agriculture sector is to seamlessly deliver fresh products to clients and extract profit. With the logistics app, farms can minimize waste through automated stock management, reduce time to market, and ensure freshness even for perishable goods.
• Retail and E-commerce. Logistics apps may be used here to enable inventory management for e-commerce warehouses, provide comprehensive order tracking and delivery management for online retailers, and set up route optimization for last-mile delivery
• Healthcare. Transportation of medical supplies and medications on time is crucial. Logistics app development may assist healthcare organizations in tracking and managing medical equipment movement and pharmaceutical supply chain management and enable temperature-sensitive logistics options for transporting particular medication.
• Food industry. To deliver fresh foodstuffs all over the world, the adoption of logistics applications is pivotal. This allows food companies to deal with perishable goods delivery and get the most optimal routing for food distribution.

Logistics apps are not only utilized in various business sectors but are also categorized for different purposes. Let’s specify the key types of logistics applications below:

Last-mile delivery software is designed to optimize the final stage of cargo delivery, usually referred to as the “last mile.” In other words, last-mile delivery apps enable seamless flow during the shipment of goods from distribution centers or warehouses to the ultimate destination.

Last-mile delivery solutions are often used within ecommerce and retail businesses to ensure smooth and on-time delivery of shipments to customers' doorsteps. Therefore, due to drastic pandemic-related changes in the world trade market, more e-commerce businesses have turned to Internet channels for purchasing goods from suppliers. As a result, currently the demand for freight services among e-commerce businesses has grown up to 28%.

Key functionality modules of last-mile delivery app include:

• Dispatch and route optimization module
• Driver management and communication module
• Customer communication and tracking module
• Reporting and analytics module

Last-mile delivery software examples: Onfleet, Shipday, Dispatch Track

A transportation management app is a multifunctional tool that plays a pivotal role in the establishment of a supply chain for logistics and transportation businesses. Transportation management software development enables logistics organizations to optimize the planning, management, and execution of shipping activities, automating the monitoring process of goods' and materials' movement.

Besides, there are subtypes of transportation management systems. Here are the most comprehensive examples:

• Fleet management apps. Fleet management app development assists logistics companies in managing and optimizing the movement of freight or cargo across the supply chain
  • Freight management apps. Freight management software development is widespread among logistics organizations to simplify the management of vehicle fleets, including vehicles, drivers, and operational efficiency

Here are essential modules of transportation management apps:

• Shipment planning and execution module
• Exception management and notifications module
• Real-time tracking and visibility module
• Vehicle tracking and telematics module

Warehouse and inventory management apps are software programs that help businesses track and manage their shipments, stock levels, and shipments. Warehouse inventory management software helps logistics organizations to automate plenty of tasks, including inventory level tracking and order picking, minimizing the possibility of manual errors and increasing efficiency.

Apart from this, one of the distinguishing attributes of warehouse and inventory apps are barcode scanners, which facilitate quick and accurate data entry within a system.

Every warehouse inventory management app has to contain the following modules:

• Inventory management module
• Warehouse management module
• Order management module
• Quality control module

Warehouse inventory management apps examples: Zoho Inventory, Fishbowl Inventory, Shiphero

An on-demand logistics app is a logistics solution that connects customers or businesses in need of transportation services with service providers who can fulfill those needs in real-time. So, if you suddenly discover that cargo has to be delivered immediately, but there is no space in your vehicle, you can request shipping quickly within an application.

You can imagine this as an Uber for cargo and goods. Basically, the principle is quite similar: you post the delivery request specifying the needed vehicle, and the delivery provider sees and accepts it if all preferences match. Besides, you can track the shipment in real time, and the delivery provider gets paid directly when all deliveries are completed.

On-demand logistics apps usually contain the following modules:

• Location matching module
• Route optimization module
• Dynamic pricing module
• Real-time tracking module

On-demand delivery apps examples: Uber Freight, DoorDash, Lalamove

Logistics application development and implementation is a comprehensive way to enhance your transportation activity. Let’s take a closer look to its advantages:

Due to the centralized approach, you can easily track and manage essential vehicle-related data (location, shipment information, etc.) within one system. This also includes tracking the technical condition of a chosen vehicle, enabling you to detect existing issues and prevent potential ones.

Also, you won’t need to deal with numerous spreadsheets to assign a driver to delivery, as the app can complete this task independently.

Transport and logistics app development can help you make paperwork a thing of the past. The solution facilitates the pre-filling of the documents and contains built-in compliance checks to ensure your shipments will boundlessly go through customs. At the same time, real-time updates provide you with the ability to be up-to-date with customs clearance and predict potential issues.

Algorithms within the logistics app provide you with the fastest and the most fuel-efficient path. Besides, through real-time vehicle tracking, you can adjust the routes if unpredictable issues arise, enabling you to avoid shipment delays.

The app also allows you to conduct carrier comparisons so that you can find the most cost-efficient rate and service levels for each shipment.

The decision to build a logistics app may also significantly refine your whole supply chain. With such a logistics solution, you can see your inventory levels among warehouses, analyze the current situation, and predict future needs, preventing stockouts.

Integrating a logistics app into your business operations allows you to keep track of all goods that were shipped, are currently shipping, or are still left in the warehouse. Apart from this, the logistics app connects shippers with carriers based on available space in the vehicle, as well as the type and size of cargo. The logistics application connects returning trucks with nearby shipments seeking transport back to their origin, minimizing the number of empty return trips.

The functionality defining is an integral and primary stage of each project’s lifecycle. It is highly recommended to first develop the MVP (minimum viable product) version of the software to cut down the cost of developing logistics apps as well as creation time.

Next, the functionality can be expanded with advanced features after the deployment for a higher user satisfaction rate.

Here’s the possible primary functionality to consider for the logistics mobile app development according to the user role:

• Shipment booking. This feature within a logistics app allows users to schedule and arrange transportation for their goods
• Order tracking. This feature for the logistics app development enables entering the shipment's unique code to observe its online movements
• Tariff estimation. Clients can complete calculations concerning the costs and time according to the demanded service as well as the region
• Address management. This functionality lets users input, store, and manage addresses for pickups, deliveries, and logistics operations
• In-app communication. This feature allows sending messages directly, engaging notifications, or collaborative tools, enhancing communication between users (customers, drivers, or shipment team members)
• Scheduled pickup. With this function, your audience can receive the order and get it from the chosen location by setting a convenient time for the delivery
• Payment services. Among the other features of logistic app development, this one is integral since customers can fulfill digital payments safely via your solution

• Order management. Allows drivers to overview and manage all assigned orders, including cargo details, final destination, and route and delivery instructions
• Route navigation. This feature provides GPS-based navigation to guide drivers along the most efficient routes for fast and timely deliveries
• Proof of Delivery (POD). This functionality helps drivers capture and submit proof of delivery through the app, confirming the successful completion of each shipment
• In-app communication. Through this feature, it becomes possible to establish direct communication between drivers and other parties, addressing any queries or concerns swiftly
• Check-in and check-out. Utilization of this functionality facilitates swift drivers’ check-in at pickup points and check-out after delivery completion

• Dispatcher Dashboard. This functionality performs as a centralized control hub for dispatchers to manage logistics operations
• Route optimization. This helps dispatchers ensure the cost-effectiveness and efficiency of chosen delivery routes
• Order assignment. By utilizing this feature, dispatchers can streamline workflow by assigning orders to drivers automatically
• Schedule management. The functionality ensures timely cargo pickups and deliveries through automated scheduling
• Real-time tracking. This feature allows real-time monitoring of shipment status
• Driver performance monitoring. The functionality provides statistics and comprehensive metrics for tracking and optimizing driver efficiency
• Communication tools. The functionality enables seamless real-time connection between dispatcher and driver, keeping them up-to-date about potential changes in planning

The admin panel in a logistics app serves as the control center for overseeing and managing the entire system and users operating within this system. It enables easier completion of administrative functions, including:

• User management (warehouse staff, drivers, dispatchers, etc.)
• Access control (ensuring that each user category operates the software as they’re permitted to)
• Data analytics (Analysis of metrics like delivery performance, Driver’s efficiency, etc.)

It’s time to proceed to the logistics mobile app development and implementation. To hint you on the structure of the development flow, we’ve crafted a short list of 8 steps to keep up during the logistics software build.

Generally, it’s vital to establish why your transportation organization needs a logistics app and what problems it has to solve within its operations or customer interactions. Clarification of your primary business needs will allow you to create a comprehensive development and implementation roadmap to follow. By this, you’ll avoid redundant functionality layering, which may positively impact your ability to allocate resources gradually as the need increases.

Anyway, here are the most common reasons why businesses rely on transportation decide to build logistics app:

• Enhance visibility within logistics operations
• Meet user's expectations about fast, transparent, and timely delivery
• Enhance communication between stakeholders (drivers, dispatchers, customers)
• Save costs through manual processes automation
• Adapt to logistics industry tendencies, etc.

App development for logistics requires assistance from real experts with robust tech expertise. However, besides tech skills, there are more things you have to seek from your future IT partner:

• Experience. It’s vital to ensure that the IT vendor of your choice has extensive experience in project delivery for logistics businesses. It would also be great if their portfolio counts logistics apps similar to your concept
• Compliance orientation. Ensure that the logistics software development partner has a deep knowledge of building logistics software that meets industry-specific regulations like GDPR (data security), HS Code (customs and trade regulations), Carrier contract compliance (SLA), etc.
• Integration potential. Check out if the IT vendor offers integration of logistics software within other logistics systems like transportation software, warehouse inventory management software, freight rate management software, etc.
• Past feedback. Research their previous clients' feedback on platforms like Clutch to establish how the vendor works and what outcomes is capable of providing

You can examine our client's feedback on our Clutch to ensure we have a high level of tech expertise and ability to provide robust assistance in your business's digital transformation.

Composition of the right requirements list for your logistics management app development will help you get closer to understanding what your logistics solution can and can’t do and what needs of your business can be accomplished by logistics app implementation.

But anyway, what are these logistics app requirements? At this stage, you and your development team will decide on:

• Logistics app architecture (responsiveness, data model, security measures, etc.)
• Feature set
• Scalability potential
• Essential regulations to comply with
• Requires integrations with current logistics systems
• API to implement, etc.

As you and your development team establish what functionality has to be within your logistics app, your development team will select the most appropriate technology stack to successfully implement it. The choice of the tech stack is paramount to ensure the high-quality and proper functioning of the software.

The basic tech stack for logistics app development includes the following categories and tools:

• Back-end technologies: Node.js., Django, Ruby on Rails, etc.
• Front-end technologies: React, Angular, Flutter, etc.
• Registration and user authentication: JWT (JSON Web Tokens), UAuth 2.0
• Payment: Stripe, Paypal
• Real-time communication: WebSocket, WebRTC, Socket.io.
• Database: MongoDB, PostgreSQL
• Cloud computing: AWS, Google Cloud, Microsoft Azure
• Mapping: Google Maps API, Geocoding APIs, etc.

A well-structured, simple, and attractive design for your logistics app can help your users adopt it and start operating much faster. UI/UX designers within your logistics software development team will help you stick to clean, intuitive, and responsive layouts that will significantly speed up future onboarding of your workers.

Besides, it’s highly recommended to include in-app user feedback and guidance, assisting them in the technology utilization and providing you with valuable insight to engage in future logistics app improvement.

At the development stage, your logistics app development team will work on functionalities implementation using the chosen tech stack.

At Cleveroad, we work in 2-week sprints. Before each sprint, we discuss and agree on the scope of work with you, implement necessary functionalities, and, in the end, present the developed functionality for you to test and provide feedback on the outcomes.

Throughout the whole development process, the QA engineer tests the functionality to detect and report spotted issues to developers to fix it timely. After the development stage completion, QA specialists run additional smoke tests to detect occasional bugs and run stress tests to ensure the logistics app's stability during heavy user traffic loads.

Logistics apps can seamlessly integrate with multiple business systems (CRM, ERP, etc.) that provide you with a 360-degree view of the internal operations of your logistics organization. Also, the logistics app can be integrated with various APIs. Here are only a few examples:

• Google Maps API: geolocation, mapping, route optimization functionalities
• Amazon S3 API: Enables seamless integration with Amazon S3cloud storage for efficient document management and data storage
• UPS API: integrates software with UPS services, enabling shipment tracking, rate calculation, and label printing
• WMS integration: Ensure seamless data flow, leading to improved visibility and management of inventory
• IoT platforms: Facilitates enhanced interoperability between logistics apps and IoT devices to achieve a complete view on sensors (temperature, humidity), GPS location data, equipment status, and environmental conditions.
• Notification services integration: Assists logistics businesses in seamless coordination, timely data, and improved responsiveness in transportation operations.

After transport and logistics app development and deployment within your business environment, you can optionally request application support and maintenance services from your IT partner. This process includes periodical app optimization to prevent potential issues and enhance its functionality and operability.

It’s vital to continuously monitor how your logistics app behaves and interacts with other systems within your logistics environment. This may help you ensure robust functionality, strong security and obtain the ability to scale the logistics solution according to your business growth.

While thinking about how to create a logistics app, it’s also important to remember about complexities associated with the development.

Let’s undercover the 5 most common logistics software development challenges and find possible solutions.

Handling constant massive streams of logistics live data, like real-time tracking, fleet locations, and dynamic changes, without delays or inaccuracies may be indeed challenging. Besides, the list of complexities may include infrastructure scaling and ensuring timely updates while still maintaining high uptime.

Cleverod tip: The employment of advanced data processing technologies, like in-memory databases (Redis, VoltDB, etc.) or event-driven architectures, will help you ensure swift and accurate handling of real-time data.

Finding the most suitable cooperation option may be a hurdle touching technical expertise and financial investments. Logistics mobile application development requires a strong skillset, as well as robust project management capabilities. Besides, choosing an IT vendor from a nearby region may be costly and does not usually align with your tech expertise and cultural requirements.

Cleveroad tip: Deciding to outsource software development to an experienced logistics software development company may become a solution. By choosing this cooperation model, you’ll get an opportunity to access a wide talent pool worldwide and find demanded expertise from specialists from a similar background that matches your budget.

With an enormous data flow, it’s quite difficult to facilitate robust security for sensitive logistics information, including customer data, shipment details, and financial transactions. These concerns revolve around protecting sensitive information from unauthorized access, alteration, disclosure, or destruction.

Cleveroad tip: To avoid unpleasant occasions touching data security, Cleveroad’s experts utilize encryption mechanisms to protect data stored on databases and servers, implement secure authorization and authentication methods like MFA (Multi-Factor Authentication) and RBAC (Role-based access control), and implement secure API methods, like the API keys, and OAuth tokens.

Third-party integration challenges in logistics app development count potential issues with the compatibility of the app with existing business systems. Besides, data security concerns are still present here, as it’s hard to predict the reliance and reliability of external services.

Cleveroad tip: To mitigate potential integration conflicts, prioritize standardized APIs and choose a reputable logistics software development provider with proven integration experience. They’ll help you implement robust fallback mechanisms, a backup plan in the primary services fail.

Every logistics app must include route optimization functionality. The primary issue is to establish the correct functioning of a route optimization module. The challenge may arise because of inaccurate or outdated data, leading to false and destructive route recommendations. In this case, you won’t be able to track the route in real time, and the driver won’t receive essential info about traffic conditions, road closures, and delivery priorities, leading to delays and shipment collapses.

Cleveroad tip: Regularly update the algorithm with the latest data and leverage real-time tracking through technologies like telematics systems. By engaging GPS technology and sensors, telematics systems provide real-time data on the location, status, and conditions of vehicles and shipments. Conduct testing to verify the algorithm's performance, making adjustments as needed.

It’s high time to conduct an approximate estimate for the cost of the logistics app development. Below, you can overview the most weighty cost-impacting factors:

It often happens that logistics businesses decide to implement all the best and most complex functionality at once, leading to logistics app underutilization and poor adoption. Besides, such choices may result in the high price of the logistics solutions.

To mitigate budget constraints, it’s recommended to start from MVP (Minimal Viable Product). This is a simplified logistics app version that contains only basic functionality. At the same time, you obtain the ability to test the logistics solution in real-world conditions, gather user feedback, and then decide on further advanced functionality implementation.

It is crucial to consider the selection of operating systems for logistics mobile app development carefully. You’ll need to decide between native app development (for only one platform), or dive into a cross-platform approach. However, note the cost significantly escalates when adopting both iOS and Android software architectures.

The native transportation app development may help you reach superior quality and responsiveness but may require more significant financial investments. At the same time, engaging cross-platform app development services will be less costly. This approach will help you speed up the logistics software creation and occupy both platforms.

Nonetheless, your final choice between cross-platform and native development should be based on a precise analysis of the logistics project's goals, user experience requirements, and long-term considerations about the logistics application maintenance.

IOS applications are usually created using programming languages like Swift or Objective-C, while Android apps often involve Kotlin or Java. Flutter which is used for cross-platform app development, offers a significant cost reduction, enabling a broader audience reach within moderate investments. This enables you to efficiently penetrate both iOS and Android niches, contributing to cost-effectiveness and wider accessibility for your application.

Logistics app design requirements may significantly impact your budget planning. The complexity and specificity of design elements, such as user interface intricacies, data visualization, and integration of real-time tracking features, have to be thoroughly planned and discussed with your UI/UX designer.

This will help you avoid misunderstandings and establish the needed budget before the work starts. Anyway, try striking a balance between an intuitive user experience and cost-efficient design choices to ensure you’ll receive an efficient logistics app, avoiding unnecessary financial burdens.

The selection of the logistics app development team members is another thing that may impact the overall investments. Here is a basic software development team structure required:

• Project managers
• Business Analysts
• Solution Architects
• UI/UX designers
• Developers (front-end, back-end)
• QA engineers
• DevOps specialists

However, you may need just a developer or a UI/UX designer. In Cleveroad, we provide our clients with the ability to utilize a staff augmentation cooperation model to cover these needs. So, if you already have a team but it’s incomplete, we can help you quickly onboard our expert within your project.

Another thing that impacts logistics app development is the team's location. For sure, some of the most popular outsourcing destinations are North America and Western Europe. However, there the pricing is sky-high, which is not always aligned with the final product quality.

Below, you can examine hourly rates among the most recognizable outsourcing destinations worldwide:

Asia and South America have appropriate pricing and quite good development services quality, but usually, an enormous cultural gap becomes an issue that may negatively impact mutual understanding and cooperation in general.

At the same time, Central and Eastern Europe can pleasantly surprise you with adequate pricing and provide extensive and deep expertise in logistics app development. Also, the region is famous for high English proficiency and high adaptability, making it easier to build a communication bridge during an intensive and complex software development process.

There are also some additional factors that impact the logistic mobile app development costs. These factors usually get lost among different tasks within the logistics app development process, but it’s something that has to be mentioned:

• Users count. The more users are projected to use your solution, the more financial investments it will require
• Security level. The level of strengths of the safeguarding measure you choose directly impacts the final cost of a logistics app
• Need for support and maintenance. if your solution will need support and maintenance services, this will also contribute to the overall logistics application price

Even though the final price of your exact logistics app may vary depending on your unique needs, the approximate pricing for the logistics app development is $100,000-$250,000.

Cleveroad is a logistics app development company with 12+ years of experience in the domain. Our activity involves building and delivering custom logistics software solutions to businesses of diverse scales, enabling organizations to optimize their transportation management, enhancing supply chain flow, reducing the need for time-consuming manual effort, cutting delivery time and costs, and more.

What Cleveroad offers to clients:

• Custom logistics software development services will help you create a scalable logistics app, that will enable you to optimize transportation and delivery processes
• Consultation with our logistics subject matter IT experts, who will consult and guide you the development and implementation of a logistics app
• Expertise in seamlessly integrating freshly developed logistics solutions with internal logistics systems (TMS, WMS, CRM, ERP, etc.) and third-party services (Google Maps, Xero, Asset Panda, etc.)
• Cooperation with a partner with ISO 9001:2015 (quality management) and ISO 27001:2013 (security) international certifications
• Precise control over logistics-specific international regulations touching transportation, data security, and integrity
• Flexible cooperation models to choose from: Dedicated team, Time and Material, Fixed price, etc.

The logistics industry is an indispensable part of our expertise. Cleveroad technicians will eagerly develop an LMS, TMS, Supply Management System (SCM), ERP, or any other type of solution. Logistics software architected by our team of developers is the key to streamlining the supply chain, reducing expenses and risks, delivering a top-class customer experience, and automating the workflow.