Every modern logistics and transportation business needs helpers in the form of innovative solutions, such as 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 cloud based logistics software is, its main benefits, how it affects a company’s operations, and how to choose the best software option for you.
What exactly is cloud logistics software?
According to the PW Consulting report, 75% of logistics organizations are planning to adopt cloud-based systems to enhance their operations. 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.
There are different types of cloud software for different needs, such as TMS (transportation management system), warehouse management, SCM (supply chain management), fleet management solutions, and inventory management systems.
Benefits of cloud-based logistics software
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-based 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.
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.
In general, the 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.
But who will especially need the help of cloud 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.
Cloud-based logistics software cost breakdown
As for pricing, it all depends on the scale of the business, functionality, and vendor. There are several types of cloud 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-based 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.
How software affects the real world
The benefits of cloud-based logistics software extend to real-life applications. Here are a couple of examples of how different types of cloud software will play out in different case studies.
| Type | How it works | Before | After |
| 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 in cloud-based logistics and transportation
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.
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.
Emerging trends in cloud based logistics software
Let’s consider some of the trends that are projected to become the main drivers for change in the future of logistics.
Artificial intelligence in warehouses
AI-enabled systems have the potential to significantly affect warehouse management, as these systems can automatically manage picking, packing, and inventory processes. These systems also help in forecasting and optimizing logistics processes in real time.
Sustainability and emissions tracking
The use of the cloud and analytics solutions has become widespread in real-time monitoring of energy consumption and carbon emissions related to transport and storage activities.
Cloud-based IoT integration
More cloud platforms will connect the IoT sensors installed on warehouses, vehicles, and shipments, which enable the monitoring of temperature, humidity, and cargo conditions in real time. This ascertains better control and reduces losses, thereby allowing for proactive decision-making along the supply chain.
Collaborative platforms/portals
Cloud-based visibility portals bring together suppliers, carriers, warehouses, and customers within one workspace. They enable smooth communication and coordination of activities, sharing of data for enhanced efficiency, and visibility of all logistics operations.
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.
- Define processes that 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.
- Check adaptability and integration A good solution should scale with your business, offer customization where needed, and connect easily with your current systems.
- Get hands-on experience Test the software in real conditions — see how it performs under load, how your team interacts with it, and how quickly support responds.
- 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, if a company saves $100,000 per year and the software costs $30,000, the ROI is:
($100,000 − $30,000) / $30,000 × 100% = 233%ld and how to choose the right system for you.
Build scalable and efficient cloud software solutions with Intobi
At Intobi, we build cloud-based solutions that simplify complex workflows and boost productivity. One of our key projects is Valandinis – a robust SaaS (software as a service) platform that was created to help construction companies manage workers and projects efficiently.
What we delivered for the Valandinis project
- End-to-end SaaS platform with web (React.js) and mobile apps (iOS/Android)
- Automated task assignments, scheduling, and work hour tracking
- Integrated project planning, budgeting, and facility management
- Real-time updates and role-based dashboards for managers and workers
- Seamless communication and notifications via Twilio, OneSignal, SendGrid
- Cloud storage and data management through AWS S3 and Google Drive
Results of our work
- 30% increase in team productivity
- 40% reduction in manual errors
- Faster decision-making and smoother project execution
This project is a statement that the Intobi team is a reliable partner to create scalable, intuitive cloud software that transforms operations and prepares businesses for future growth.
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, and what its efficiencies are. How it impacts the world and how to choose the right system for you.
Contact us if you want to develop a scalable and secure cloud software for your business.
FAQ
Web-based platforms are automating supply chains via real-time tracking, route optimization, and inventory management. Accessible anywhere, no physical servers needed.
This technology centralizes real-time data from warehouses, vehicles, and shipments. It helps optimize routes, predict demand, automate routine tasks, and reduce errors. The result: improved workflows and decision-making, and lower operational costs (25-30% in savings).
Cloud-based logistics software provides real-time visibility, optimizes routes, and improves collaboration across teams. It scales operations, reduces costs, and enables smarter, data-driven supply chain decisions.
The growth of the cloud software market for $45B by 2029, driven by growing adoption of digital platforms. Key trends include AI-powered warehouses, cloud IoT integration, collaborative portals, and emissions tracking, making operations more efficient, transparent, and scalable.
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