Logistics Industry: What you need to know to build a solution in logistics

Germany is first Europe's logistics market giant with annual revenues of over 260 billion euros almost equal to that of the UK and France combined, and more than five times bigger than that of The Netherlands. In addition to that, Germany had the highest level of investments in 2019 in comparison with other European countries that led to above-average growth of the transportation and logistics industry and maximized the efficiency of Germany's digital logistics.

Various digital technologies make the logistics industry smarter. The process of using advanced technologies and communication channels in logistics calls digital logistics. Not only does it help to reduce operating costs and enhance the overall efficiency, but also it improves supply chains and deliver more sophisticated customer-focused solutions. Having that in mind, logistics companies opt for new digital logistics solutions and tools that can be strategically deployed. Let's find out the structure of the logistics market.

Below we have outlined the logistics market segmentation by systems. Let's take a closer look below!

• Information integrated systems: allows businesses to connect the various IT systems and applications to facilitate rapid decision-making and optimize their extended supply chain, integrating their internal business processes with their partners' business processes.

• Fleet management systems: used to help companies in better organizing and keeping track of all vehicle types.

• Electronic data interchange: allows companies to speed up logistics timelines and eliminates manual errors through automation of business processes.

• Database management systems: allows you to create and maintain databases, make changes if there is a need.

• Order management systems: provide companies with a more flexible approach in their inventory volumes and eliminate the need for operating a dedicated distribution center.

• Tracking and monitoring systems: used to track packages and monitor their location, helping to prevent and reduce losses.

In addition to that, the digital logistics market by applications can be divided into warehouse management, labor management, and transportation management solutions.

Below we have identified some major features you should take into account. Typically, a logistics systems include the following:

• Inbound/outbound transportation: allows your employees to ensure the efficiency of networks distributing the goods and reduce transportation and storage costs.

• Warehouse management: allows companies to optimize their stock as well as increase accuracy and overall efficiency in a timely and cost-effective manner.

• Fleet management: used to track vehicle activity and your savings reducing time and fuel costs and increasing productivity.

• Processing orders: designed to simplify the picking, packing and delivery process of the packages.

• Inventory control: helps to ensure that your company is equipped with goods, raw materials, supplies and allows you to make the right decisions.

• Forecasting: used to facilitate crucial business activities like financial planning, budgeting, sales, risk assessment. etc. to drive business efficiency.

• Analytics: used to analyze business performance, evaluate your business processes, and make data-driven decisions.

Having conducted thorough research, we have provided you with a list of European companies that digitize the global logistics industry. Every logistics tech startup carries a unique approach and has already operationalized several use cases. Let's take a look at some logistics startups that have attracted public attention with top-notch solutions in logistics:

We, at SweetSoft company, have developed and implemented a variety of logistics software solutions such as delivery management and car rental systems, mobile app that meet your unique business needs and requirements.

According to a survey among more than 500 companies published by Bitkom, logistics digitalization is a serious challenge that logistics companies in Germany have to deal with. 79% of the companies claimed that they face challenges in digitizing logistics, compared to 74% two years ago. Privacy, security, lack of IT infrastructure may be considered challenges when companies try to adopt or build logistics solutions. In addition to that, expensive data exchange charges between the devices required for communication is a challenge for this market as well.

While new challenges emerge, Sweetsoft company can help you successfully tackle challenges that logistics companies currently face. Having huge experience and great expertise in logistics industry, we can develop and implement robust software solutions that move your business to the next level.

Digital logistics opens up golden opportunities for companies in the logistics landscape. Not only does it help them to closely integrate with existed enterprise systems, but also it enables innovative ways of collaboration and new business models. SweetSoft's core expertise includes integrated logistics, freight forwarding and transportation, delivery and supply chain solutions. Not only can we develop and implement highly customized solutions to a great number of companies, but also we deploy innovative and advanced supply chain models that enhance business efficiency and performance.