Every modern business needs helpers in the form of innovative solutions, in this case cloud based supply chain management software. This is what will help a company to reduce costs, increase planning accuracy, and improve customer service several times over. In this article, we will explore what logistics is, its main benefits, how it affects your daily life, and how to choose the best software option for you.
What exactly is cloud logistics software?
60% of organizations have already achieved revenue growth by adopting cloud-based technologies; it’s time for you to learn more about it. Cloud-based logistics software is a digital platform that automates and centralizes all major supply chain processes:
- demand planning;
- procurement management;
- production logistics;
- warehouse management;
- transport logistics;
- returns management;
- customs management;
- customer service;
- analytics and optimization.
It is cloud-based for a reason, because all data is stored and processed on remote servers. Accordingly, it does not require installation on a local PC, which is what distinguishes it from traditional systems.
Logistics software is divided into four main blocks.
There are types of software for different needs, such as TMS (transportation management system), warehouse management, supply chain management, fleet management solutions, and inventory management systems.
Application sectors (manufacturing, pharmaceuticals, food processing, etc.) are also specified. Deployment models (on-premises, cloud, hybrid) and the size of organizations.
Cloud-based logistics platform enables all participants (suppliers, carriers, and warehouses) to work in a unified space where data is synchronized in real-time. Meanwhile, AI algorithms automatically optimize routes and inventory. For example, when one truck’s route changes, the system instantly recalculates schedules for all linked vehicles.
In addition, cloud logistics software is geographically distributed, which improves system resilience and performance — data is processed closer to the user, ensuring faster response times and reducing the risk of regional outages.
There are six blocks in total, including North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa.
The main tasks that cloud based supply chain software solves are reducing logistics costs, shortening delivery times, and improving customer service through the automation of 90% of routine tasks. The latter includes the generation of delivery notes, calculation of imposed payments, and transportation load planning — all of which contribute to faster and more reliable service for customers.
Who will especially need the help of such technologies? Cloud logistics solutions for supply chains are especially valuable for online stores, as they will help to reduce the cost of delivery. For manufacturers, it is the control of raw materials and finished products. For international companies, it will simplify customs clearance. For seasonal businesses, it is a quick scaling of logistics.
As for pricing, it all depends on the scale of the business, functionality, and vendor. There are several types of solutions for different needs, such as transportation, warehouse, or complex.
| Type of solution | Average cost |
| TMS (transportation) | $300-$3,000/month |
| WMS (warehouse) | $500-$10,000/month |
| Full supply chain management suite | From $15,000/year (for small and medium-sized businesses) |
In addition to the costs of your cloud logistics software, it is worth considering the additional costs of integration, training, customization, and data migration. Integration includes connecting the cloud software to your company’s existing systems, setting up API or EDI data exchange, and automation processes.
Training employees to work with the interface also requires cost and time. This includes case studies on what to do in case of system failures. Customization is refining the interface, creating unique reports or dashboards, setting up specific business rules, for example, special conditions for VIP clients.
Data migration involves transferring information from old systems, cleaning data (removing duplicates and correcting errors in product codes), and verifying the accuracy of the transfer.
According to a McKinsey survey, 90% of supply chain executives have invested in digital supply chain management technology, and 80% plan to continue investing in 2025 and beyond, often to support forward planning.
Benefits of cloud-based logistics software
Everything has its benefits, and cloud logistics software is no exception, as it has as many as seven positive attributes.
- Instant scalability. Easily add users, warehouses, or transportation routes without server costs and flexibility for seasonal business.
- Savings. Reductions in logistics payroll, documentation errors, and transportation downtime.
- Supply chain visibility. Tracking of shipments 24/7 with 15-meter accuracy, predicted delivery times (ETA) with traffic jams and customs, and auto-alerts on risks.
- Intelligent analytics. AI analyzes optimal inventory levels, regional demand trends, and logistics bottlenecks.
- Seamless integration. Transportation telematics connects with ERP (1C, SAP) and marketplaces.
- Enterprise-level security. AES-256 encryption, backup in 3+ data centers, ISO 27001, and Grand DPR certificates.
- Accessibility and mobility. You can work via browser from any device, in offline mode with synchronization on connection, and mobile apps for drivers/warehouse workers.
This cloud-based transport and warehouse integration is your strategic asset that reduces operational risk, makes your supply chain transparent, and keeps you ahead of the competition.
How software affects the real world
Benefits of cloud-based logistics software extend beyond the above examples, and their impact can be observed in real-life applications. Here are a couple of examples of how this will play out in the case studies.
| Type | How it works | Before | |
| TMS | The system connects to GPS trackers, fuel sensors, and order data. The AI analyzes traffic jams, weather, driver schedules, and carrier rates. The AI analyzes traffic jams, weather, drivers’ schedules, and carriers’ tariffs. | Drivers planned their own routes — 30% of the mileage was “idle”. | Automatic calculation of routes taking into account cargo weight and road restrictions — fuel saving. |
| WMS | Each product is assigned a QR code and coordinates in the shelving system. Storekeepers receive tasks on smart terminals: “Pick up 3 boxes of A-12-4”. The system suggests the optimal path through the warehouse. Automatically moves expiring items forward (FIFO/FEFO). | It took up to 15 minutes to find an item. | The time was reduced to 3 minutes. Counting error — 0.2% (was 8%). |
| SCM | Suppliers, see your stock balances. The factory automatically orders raw materials when the minimum is reached. Analyzes sales for 3 years, seasonality, and market trends. If one supplier is delayed, instantly look for alternatives. | Manually coordinated deliveries — delays of up to 2 weeks. | Automatic orders from suppliers — lead times reduced to 3 days. |
So we can see how cloud supply chain software affects the entire company with real-life examples. Why can it be very profitable? For small businesses, cloud rental is often more cost-effective than traditional services. For corporations, it is the visibility of the entire supply chain from raw materials to the customer. For logistics companies, speed is a competitive advantage.
Future prospects
Cloud based logistics software has promising prospects, as demonstrated by various statistics. Below is an image of one of the charts showing that the market is growing rapidly. In 2024, it was valued at $23.16 billion, and by 2029, it is expected to grow to $45.48 billion (almost twice the current value).
North America (USA, Canada) has the largest market, and Asia (China, India, etc.) has the fastest-growing market. You will also find the names of the most important companies in this field.
The demand for cloud-based logistics software is increasing, and CAGR forecasts it to grow at a CAGR of 14.47% from 2024 to 2029. The main aspects driving this growth are the shift to the cloud, the need for real-time data and analytics, and the drive for efficiency and cost reduction
Choosing the right cloud-based logistics software
Cloud based freight forwarding software is not an easy choice, because it is your future strategic assistant. Below, you will find a brief list of points to consider. Write down your answers so that you can choose the best option later on.
- What should be automated? Transportation, warehouse, or supply chain?
- Evaluate the size of the business. Small, up to 50 employees, or large.
- Check the key features. Real-time operation, mobile app for drivers/warehouse workers, API to connect to your CRM/ERP.
- Compare vendors. Pay attention to cost, security, and support availability.
- Test before you buy. Request demo access (minimum 2 weeks) and test the usability of the interface, speed with 100+ users, and how tech support responds to issues.
- Calculate the return on investment (ROI). The effect will be positive if transportation downtime is reduced and the loss of goods is reduced.
To properly calculate ROI, use this formula: (Annual Savings — Software Cost) / Software Cost × 100%. For example, $100K savings at $30K cost — ROI = 233%.
Embrace the cloud, embrace the future
Cloud logistics solutions for supply chains are a strategic enabler for your business to help keep you competitive. It is your direct path to saving money, increasing speed, scalability, and security of your data.
Today, you have learned what cloud based logistics software is, what its efficiencies are. How it impacts the world and how to choose the right system for you. Contact us to learn more about logistics and other industries.
FAQ
Web-based platforms are automating supply chains via real-time tracking, route optimization, and inventory management. Accessible anywhere, no physical servers needed.
The benefits of cloud-based logistics software include saving 25-30% costs, 24/7 shipment visibility, and instant scalability. AI predicts demand, prevents stockouts, while maintaining security and automatic updates.
E-commerce: 15-20% cheaper shipping. Factories: 40% less downtime. Fleets: 12-18% fuel savings. Better crisis resilience.
$45B market by 2029. AI warehouses, drone deliveries, and blockchain contracts are coming. Carbon tracking will be standard by 2030.
The sector will grow to $45 billion by 2029, driven by AI-powered smart warehouses, urban drone deliveries, and blockchain-enabled contracts. Sustainability features like emissions tracking will become standard by 2030.
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