Logistic App Development: Cost, Features And Process

Logistics app development has revolutionized the supply chain and transportation industry, addressing significant challenges such as downtime, operational malfunctions, and freight loss. 

However, logistics apps have emerged as a solution, fostering transparency among freight forwarders and streamlining the supply chain process by eliminating intermediaries.

If you’re interested in understanding the landscape of logistics app development, you’re in the right place. This article offers insights into the logistics market, the functionality and advantages of on-demand logistics apps, and the factors influencing the cost of logistics app development.

To gain a comprehensive understanding of the logistics app market and its potential benefits, let’s delve into the market overview and explore the integration of on-demand logistics app development.

Logistics Industry Market Stats

The market statistics paint a promising picture, indicating significant growth potential and highlighting key factors driving this expansion.

According to the report from Mordor Intelligence, The freight and logistics industry will be valued at USD 6.03 trillion in 2024 and is expected to grow at a CAGR of 4.57% between 2024 and 2029.

Source: Mordor Intelligence

Here are market statistics indicating why investing in logistics app development is opportune:

• The United States boasts the world’s largest refrigerated warehousing capacity at 156 million cubic meters, with demand propelled by growth in the pharmaceutical sector.
• In 2022, a substantial sum of USD 2.89 billion was allocated to US airports for crucial infrastructure improvements.
• Despite challenges like supply chain disruptions and inflationary pressures, the global manufacturing industry saw a 3.8% growth in output in 2022.
• Warehousing and logistics stocks are expected to double by 2030, surpassing 700 million square feet, primarily fueled by e-commerce and manufacturing sectors. Leasing activity in this segment surged by 40%.
• The global population is forecasted to reach 9.7 billion by 2050, driven by urbanization and longer lifespans.

Logistics App Development Types For Businesses

Types of logistics app development for businesses vary based on their specific needs and objectives. Here are several development solutions in the digital market:

1. Fleet Management

Fleet management apps streamline the recording and management of data associated with vehicles and fleets. These applications offer features such as vehicle tracking, maintenance scheduling, driver management, and fuel consumption monitoring. By centralizing fleet-related information, businesses can optimize their operations, improve efficiency, and ensure compliance with regulations. Additionally, these apps often incorporate analytics tools to help businesses make data-driven decisions, ultimately reducing costs and enhancing overall performance.

2. On-Demand Logistics

On-demand logistics apps provide convenient solutions for users requiring immediate delivery of goods or services. These applications typically offer features such as real-time tracking, secure payment options, order customization, and seamless communication between users and service providers. Whether it’s food delivery, parcel shipping, or home services, on-demand logistics apps offer flexibility and convenience to users while fostering positive relationships between businesses and customers.  

3. Warehouse Mobile Apps

Warehouse mobile apps revolutionize the management of inventory and operations within warehouses. These applications enable businesses to efficiently store and access data related to products, inventory levels, and order fulfillment processes. Key features of warehouse mobile apps include barcode scanning, inventory tracking, order management, and real-time updates on stock levels. By leveraging mobile technology, businesses can optimize warehouse workflows, minimize errors, and improve overall productivity.  

4. Tracking and Forwarding Applications

Tracking and forwarding applications offer real-time visibility into the movement of goods and shipments throughout the supply chain. These apps utilize GPS tracking technology to provide accurate information on shipment locations, delivery status, and estimated arrival times. Key features of tracking and forwarding applications include route optimization, shipment tracking alerts, proof of delivery verification, and customer notification functionalities. By empowering businesses with comprehensive tracking capabilities, these apps enable proactive management of logistics operations, timely response to potential issues, and enhanced customer satisfaction.

Business Benefits Of Developing A Logistics Mobile App

Discover how businesses can enhance efficiency, visibility, and customer satisfaction through innovative logistics mobile app solutions

1. Enhanced Customer Experience

A logistics mobile app provides customers with real-time visibility into their shipments, enabling them to track packages, receive notifications, and communicate with the logistics provider seamlessly. This enhances customer satisfaction and loyalty.

2. Improved Operational Efficiency

By streamlining processes such as order management, route planning, and driver communication, a logistics app can significantly enhance operational efficiency. Automation of tasks reduces manual errors and speeds up the entire logistics process.

3. Cost Reduction

Mobile apps can help in optimizing routes, reducing fuel consumption, and minimizing idle time, leading to cost savings for logistics companies. Additionally, automation of administrative tasks reduces the need for manual intervention, saving both time and money.

4. Inventory Management

A logistics app can integrate with inventory management systems, providing real-time insights into stock levels, order fulfillment, and warehouse operations. This helps in better inventory planning, reducing stockouts, and improving overall supply chain efficiency.

5. Data Analytics and Insights

By collecting and analyzing data from various touchpoints in the supply chain through an AI, a logistics app can provide valuable insights into customer behavior, delivery patterns, and operational performance. This data-driven approach enables companies to make informed decisions and continuously optimize their logistics operations.

6. Competitive Advantage

In today’s competitive market, offering a user-friendly and efficient mobile app can set a logistics company apart from its competitors. A well-designed app that meets the needs of both customers and internal stakeholders can attract new customers, retain existing ones, and strengthen the company’s position in the market.

Must-have Features In A Logistics App

In the development of a logistics app, it’s essential to design and develop three key panels. Let’s examine each panel and discuss the indispensable features that should be included in a logistics mobile app.

I. User Panel

The user panel plays a crucial role as it directly interacts with the app’s end-users, such as shippers, consignees, and other stakeholders involved in the logistics process. The user panel should be designed with a user-friendly interface and include features that cater to the specific needs of the users. Here are some features for the user panel:

1. Customer Registration Options

Registration can be completed through two methods: either by creating a new account or by utilizing existing social media accounts. Offering these options enhances the user experience and leaves a positive impression of your business. Providing multiple registration pathways ensures flexibility and caters to diverse user preferences, fostering a seamless onboarding experience for all.

2. Vehicle Selection Capability

Integrating a feature for vehicle selection is crucial for an on-demand logistics app. Users should have the ability to choose from a range of vehicles such as vans, trucks, trailers, or container trucks based on their specific requirements. This ensures that users can select the most suitable vehicle to meet their transportation needs, optimizing efficiency and satisfaction.

3. Scheduling and Booking Management

This feature enables users to book a vehicle for immediate service or schedule a booking by specifying the date, time, and pickup location in advance. Offering scheduling and booking management functionality empowers users to plan their logistics requirements with flexibility and convenience, enhancing overall user satisfaction and engagement with the app.

4. Multiple Payment Gateways Integration

Enhancing user experience involves providing various payment options. Integrating multiple payment gateways including Credit/Debit cards, online blockchain wallets, and UPI facilitates seamless transactions and encourages app usage. Offering diverse payment gateways ensures convenience and flexibility for users, accommodating different preferences and enhancing overall accessibility and user satisfaction.

5. Shipment Tracking Functionality

A crucial feature expected by users is real-time tracking of their shipments. Implementing this feature ensures transparency and reliability in the logistics process. Providing shipment tracking functionality enables users to monitor the status and location of their shipments in real-time, fostering trust and confidence in the logistics service and enhancing overall user experience and satisfaction.

6. Drop-off Location Input

Users should have the flexibility to manually input or utilize geolocation features to specify the drop-off location for their parcels. Offering multiple options for drop-off location input, including manual entry and geolocation services, ensures convenience and accuracy for users, facilitating smooth and efficient parcel delivery experiences and enhancing overall user satisfaction and engagement with the app.

7. Real-time Alerts via Push Notifications

Utilizing push notifications to deliver real-time alerts ensures users stay informed about important updates and enhances engagement with the application. Providing real-time alerts via push notifications enables timely communication of relevant information to users, keeping them informed about important events, updates, and notifications related to their logistics activities, enhancing overall user experience and satisfaction.

8. Fare Estimation Tool

Providing users with an in-built fare calculator allows them to estimate the cost of services based on package size and weight, enabling informed decision-making. Offering a fare estimation tool enables users to accurately assess the expected cost of services, providing transparency and clarity in pricing, enhancing overall user satisfaction and trust in the logistics service.

9. Access to Transaction History

Enabling users to access their transaction history and invoices helps them keep track of their activities and maintain records. Providing access to transaction history enables users to review past transactions, invoices, and payment details, facilitating transparency and accountability in their interactions with the app, enhancing overall user satisfaction and trust in the logistics service.

10. Ratings and Reviews Feature

Including a ratings and reviews feature allows customers to provide feedback on services received, which in turn assists other users in making informed decisions. Offering a ratings and reviews feature enables users to share their experiences and opinions about the logistics service, facilitating community feedback and enhancing overall user engagement and satisfaction with the app.

II. Driver/Dispatcher Panel

This panel focuses on delivery logistics app development, and the capabilities you may incorporate under it include:

1. Login and Registration

Users and drivers alike have the option to register through their existing email IDs or social media accounts, providing a seamless onboarding experience. This streamlined process ensures efficient access to the platform’s services for both parties.

2. Request Management

The platform empowers drivers and dispatchers to manage incoming requests effectively by providing them with the autonomy to accept or reject orders based on their preferences. This feature enhances flexibility and responsiveness in fulfilling service requests.

3. Availability Status

Similar to a “Do Not Disturb” function, drivers and dispatchers can indicate their availability or unavailability for services through various options such as marking their status as available or busy. This feature enables efficient coordination and allocation of resources within the logistics network.

4. Consignment Details

Offering insights into consignment details is a pivotal element that can significantly enhance the popularity of the application. By providing comprehensive information about the items to be delivered, the platform ensures transparency and reliability in the logistics process.

5. Profile Management

Enabling drivers to update their profile information is fundamental to maintaining accurate and up-to-date records within the platform. This feature empowers drivers to manage their personal information, ensuring the reliability of their profiles for users and administrators.

6. Navigation Assistance

Navigation support is critical for drivers and distributors to optimize their routes and ensure timely deliveries. By providing information on the best routes to customers’ addresses, the platform facilitates efficient and reliable transportation services.

7. Delivery Confirmation

Granting dispatchers the ability to mark deliveries allows for seamless communication between all parties involved. This feature enables dispatchers to send alerts to both customers and administrators, ensuring transparency and accountability throughout the delivery process.

8. Freight and Shipping Details

Access to comprehensive freight and shipping details streamlines the logistics process for dispatchers and drivers. This feature provides crucial information such as the weight of goods, fuel consumption, distance covered, toll charges, as well as recipient details like name, address, and contact number.

9. Access to Transaction History

Providing access to transaction history is essential for drivers and dispatchers to review past transactions and invoices. This feature enhances transparency and accountability, enabling stakeholders to track and analyze their activities effectively.

III. Admin Panel

The Admin Panel in a logistics app serves as the central control hub, enabling administrators to manage and oversee various aspects of the platform. Explore the must-have features for an Admin Panel in a logistics app.

1. Dashboard

The dashboard provides a comprehensive overview of critical information pertaining to users and drivers. It enables administrators to monitor pending and completed orders in real-time, facilitating efficient decision-making.

2. Fleet/Vehicle Management

This feature empowers administrators to manage the fleet effectively by adding new vehicles for shipment and updating existing ones with relevant information such as images. It streamlines the process of fleet management, enhancing operational efficiency.

3. Manage Invoices and Payments

The invoice management feature enables administrators to generate and update invoices seamlessly. Additionally, it facilitates the management of payments by allowing administrators to approve payments received from drivers and analyze similar transactions, ensuring financial transparency and control.

4. Drivers Monitoring

This functionality assists in managing tasks and assigning responsibilities to drivers and dispatchers. Administrators can monitor their on-road time, activities, and pending requests, optimizing resource allocation and improving overall operational performance.

5. MS Features

Under this feature, all user queries related to services or drivers, as well as any suggestions for improvements provided by users, are recorded and addressed by the administrator. This ensures a proactive approach to addressing user needs and enhancing the overall service quality.

Additional Features For A Logistics App

Here is a list of a few more features that you can add to enhance your logistics app experience.

1. Get a Quote Feature

Users can easily request a quote from service providers within the app, enabling them to obtain estimated costs and delivery times based on available deals and services. This feature streamlines the process of planning logistics by providing customers with essential pricing information upfront.

2. In-App Chat Functionality

An integral aspect of the logistics app is the in-app chat feature, which allows users to communicate directly with service providers without leaving the platform. By integrating this feature, users can effortlessly engage in real-time conversations, eliminating the need to resort to external communication channels.

3. Chat Support Integration

Incorporating chatbot functionality is increasingly becoming indispensable across both B2B and B2C sectors, including logistics applications. Implementing chatbot development enhances customer support by providing automated assistance and resolving queries efficiently. Experienced logistics software development companies often recommend integrating chat support to enhance user experience.

4. Multilingual Support for Global Accessibility

Offering multilingual support within the app contributes to its global appeal by catering to diverse language preferences of users worldwide. This practice, commonly associated with mobile app localization, enhances accessibility and expands the app’s reach across international markets, thereby boosting its popularity on a global scale.

5. Document Linking and Upload Feature

A highly beneficial feature for dispatchers is the ability to link and upload essential documents directly within the app, such as insurance documents related to shipping. This functionality streamlines document management processes, enabling dispatchers to efficiently handle critical paperwork within the logistics app, enhancing overall operational efficiency.

Cost Affecting Factors To Consider To Develop A Logistics Mobile App

The overall cost of app creation is determined by every aspect involved in your logistics application’s on-demand mobile app development process. Here are factors affecting the cost of developing a logistics app:

1. Backend and frontend development

The choice between Monolithic or Microservices architecture significantly impacts costs, with Microservices offering greater scalability but at a higher initial investment due to its complexity and need for additional infrastructure.

Development Type	Cost Range
Monolithic Development	$20,000 – $50,000
Microservices Development	$30,000 – $80,000

2. Choice of the tech stack

Programming languages such as Swift, Golang, and R come with varying costs based on developer expertise and availability of libraries and frameworks, influencing overall development expenses.

Programming Language	Cost Range
Swift	$25,000 – $60,000
Golang	$30,000 – $70,000
R	$20,000 – $50,000

3. Type of application

On-demand logistics apps require separate panels for users, drivers, and administrators, increasing development costs compared to non-on-demand apps due to the need for additional features and resources.

Application Type	Cost Range
On-demand Logistics App	$50,000 – $150,000
Non-On-demand App	$30,000 – $100,000

4. Platform (Android or iOS)

Android development may incur higher costs due to the diverse range of devices and operating system versions, leading to more extensive testing and optimization efforts compared to iOS.

Platform	Cost Range
Android	$20,000 – $60,000
iOS	$25,000 – $70,000

5. Development Team Size

Collaborating with an experienced development team ensures quality and efficiency, potentially reducing overall costs compared to managing a project with freelancers or an inexperienced team.

Team Size	Cost Range
Small Team	$50,000 – $100,000
Medium Team	$80,000 – $150,000
Large Team	$120,000 – $250,000

6. Location of the company

Development costs can vary significantly based on the geographical location of the development company, with rates typically higher in western countries due to higher living standards and operating expenses. Choosing a development team located in regions with lower labor costs can help reduce overall expenses.

Location	Cost Range
Eastern Region	$40,000 – $100,000
Western Region	$60,000 – $150,000

Revenue Model For A Logistics Mobile App

Customers have constant access to online platforms due to the increased demand for digitised logistics app solutions. As a result, logistics and supply chain organizations have many income streams from which to expand and sustain greater earnings.

The following are the key ways to generate revenue with your on-demand logistics application:

1. Paid App Model

Revenue is generated through users paying a fixed amount for a lifetime license to access the app. This model ensures a steady stream of income upfront, providing users with the assurance of lifetime access in exchange for a one-time payment. It appeals to users who prefer a one-time investment over recurring expenses, making it a lucrative option for sustainable revenue generation.

2. Advertising Revenue Model

For users utilizing the free version, revenue is generated through displaying advertisements at various intervals within the app. By leveraging advertising space within the app, businesses can tap into a diverse range of advertisers willing to pay for exposure to a targeted audience. This model offers a cost-effective way for users to access the app while allowing businesses to monetize through advertising partnerships, thereby creating a symbiotic relationship between users, advertisers, and the app.

3. Paymium Model

 Revenue is generated by charging users for downloading the app, particularly if it offers unique selling points (USPs). This model capitalizes on the perceived value of the app’s features and functionalities, encouraging users to make a monetary commitment upfront in exchange for access. By highlighting the app’s distinct advantages and benefits, businesses can justify the premium price tag, thereby maximizing revenue potential while delivering value to users who prioritize quality and exclusivity.

4. Freemium Model

Revenue is generated by offering basic features for free while charging for access to advanced features, such as offline access, in a premium version of the app. This model caters to a diverse user base by providing a taste of the app’s capabilities through its free version while enticing users to upgrade for enhanced functionalities. By strategically differentiating between free and premium features, businesses can attract a wider audience while incentivizing conversions to the paid version, thereby striking a balance between accessibility and monetization.

Tech Stack To Consider To Develop A Logistics Mobile App

Developing a logistics mobile app requires careful consideration of various factors such as functionality, scalability, security, and user experience. Here’s a list of technologies and components you might consider when building a logistics mobile app:

1. Mobile Development Framework

• Native Development: Choose between iOS (Swift) and Android (Java/Kotlin) for building separate native apps.
• Cross-platform Development: Consider frameworks like React Native, Flutter, or Xamarin for developing cross-platform apps to target both iOS and Android platforms simultaneously.

2. Backend Development

• Programming Language: Options include Python, Node.js, Java, or Ruby on Rails depending on your team’s expertise and preferences.
• Frameworks: Flask, Django, Express.js, Spring Boot, or Ruby on Rails are popular choices.
• Database: PostgreSQL, MySQL, MongoDB, or Amazon DynamoDB for storing data.

3. APIs and Integrations

• Mapping and Geolocation: Utilize Google Maps API, Mapbox, or OpenStreetMap for route optimization and tracking.
• Payment Gateways: Integrate with payment gateways like PayPal, Stripe, or Braintree for handling transactions.
• Push Notifications: Use services like Firebase Cloud Messaging (FCM) or Apple Push Notification Service (APNS) for sending notifications to users.

4. Authentication and Security

• Authentication: Implement OAuth 2.0, JWT (JSON Web Tokens), or OAuth with OpenID Connect for secure user authentication.
• Data Encryption: Use SSL/TLS for secure communication between the app and server. Implement encryption for sensitive data storage.

5. Real-time Tracking and Monitoring

• GPS Tracking: Utilize GPS and location services on mobile devices for real-time tracking of shipments and vehicles.
• WebSocket: Implement WebSocket for real-time updates and notifications to users.

6. User Interface (UI) and User Experience (UX)

• UI Frameworks: Choose between native UI components, Material Design (for Android), or Human Interface Guidelines (for iOS).
• Responsive Design: Ensure the app works well on different screen sizes and orientations.
• User Feedback: Incorporate feedback mechanisms for users to report issues, provide feedback, and contact support.

7. Testing and Deployment

• Testing: Use tools like Appium, XCTest, Espresso for automated testing. Perform manual testing for UI/UX and functionality.
• Deployment: Deploy the app to Google Play Store (for Android) and Apple App Store (for iOS).

8. Analytics and Monitoring

• Analytics Tools: Integrate analytics tools like Google Analytics, Firebase Analytics, or Mixpanel for tracking user behavior and app performance.
• Error Monitoring: Use services like Sentry or Crashlytics for monitoring and reporting app crashes and errors.

9. Scalability and Performance

• Cloud Services: Utilize cloud services like AWS, Google Cloud Platform, or Microsoft Azure for scalable infrastructure.
• Caching: Implement caching mechanisms to improve app performance, using solutions like Redis or Memcached.

Conclusion

The rise of various on-demand logistics applications is set to fuel the prosperity of the logistics industry, given the numerous advantages these apps bring. There has never been a better time to invest in logistics app development services.

However, creating a logistics app presents numerous challenges, requiring businesses to partner with an app development company. 

By leveraging the expertise of such a company, logistics businesses can effectively utilize technology to enhance and streamline their overall logistics operations with modern digital solutions.

How Can We Help With On-Demand Logistics App Development?

Idea Usher is a leading provider of on-demand app development services, known for creating highly intuitive logistics solutions. Our team of developers specializes in integrating features that can elevate your app to the top ranks.

Our suite of on-demand app development services includes social media integration, in-app payment integration, instant alerts, geo-IP location, big data analytics, cloud services, and more. 

With a proven track record of serving over 500 clients, ranging from Fortune 500 companies like Gold’s Gym and Honda to indie brands, we have successfully driven business growth through hybrid apps, mobile apps, and custom websites.

Contact us today to discover how our app development services can help you in creating your logistics app.

FAQ

Q. What advantages does developing a logistics app offer to businesses?

Developing a logistics app streamlines your operations by providing real-time tracking, enhancing communication with customers and drivers, optimizing route planning, and improving overall efficiency. It can also offer valuable data insights for better decision-making.

Q. How can a logistics app improve customer satisfaction?

A logistics app enables customers to track their shipments in real-time, receive notifications about delivery status, and easily communicate with drivers or customer support. This transparency and convenience enhance the overall customer experience, leading to higher satisfaction levels.

Q. What are the features of a logistics app?

A. Key features to consider include real-time shipment tracking, route optimization, secure payment gateways, instant messaging/chat support, customizable delivery options, multi-platform compatibility, and integration with existing systems like ERP or CRM.

Q. How long does it typically take to develop a logistics app?

The development timeline can vary based on the complexity of features, integration requirements, and customization. On average, it may take several months from planning to deployment, including design, development, testing, and refinement phases.

Q. What are the security measures implemented in logistics apps?

Logistics apps prioritize data security and privacy through measures such as encryption of sensitive information, secure authentication protocols, regular security audits, compliance with data protection regulations like GDPR, and implementing best practices for secure app development.

Q. How can a logistics app help in cost reduction?

By optimizing routes, reducing idle time, minimizing fuel consumption, and enhancing overall operational efficiency, a logistics app can significantly lower transportation costs. Additionally, streamlined processes lead to savings in administrative tasks and improved resource utilization.

Q. What ongoing support and maintenance services are provided after the app is launched?

Post-launch, ongoing support and maintenance services are crucial for ensuring smooth operation and addressing any issues that arise. This typically includes bug fixes, updates to accommodate new OS versions or device types, technical support, and periodic feature enhancements based on user feedback and evolving business needs.