Custom-Built vs SaaS Solutions: Which Is Better for Your Logistics Business?
Not exaggerating, but business automation is the key to survival in this fast changing global environment. It is no longer a luxury but a necessity to have various business processes connected and working in real time. Same trend was seen when Covid-19 pandemic hit the global deliveries and logistics market, where the operators who were once satisfied with even managing day-to-day operations in Excel sheets, came back to us asking for an immediate resolution to streamlining their middle and last mile deliveries.
Our ready-to-use SaaS offering has everything in place to get them started within hours. However, the question of owning the software and getting something installed remotely into their computers, came up every now and then. This question arises even today. To help our readers navigate this critical choice of owning or renting the system, I have compiled a balanced analysis of SaaS and custom logistics software along with a clear breakdown of the pros and cons of each approach.?
What is SaaS??
SaaS, or Software-as-a-Service, is a software solution hosted on cloud infrastructure, making it accessible to the users through the internet without having the need to be installed on individual computers or servers. In a SaaS solution, users typically subscribe to the software on a subscription basis, whereby they pay a recurring fee for access to the application.?
A logistics Saas solution is the one that helps logistics operators take their business live to automation, in the fastest way. It includes various tools and features such as delivery management, warehouse optimization, inventory tracking, and route planning, all accessible through an internet connection. This technology offers logistics operators the flexibility to scale operations, improve efficiency, and enhance visibility across the supply chain without the need for extensive hardware or software installations. With real-time data and analytics, logistics SaaS empowers organizations to make informed decisions, reduce costs, and adapt quickly to changing market demands.
In short, as a user, your sole task is to access it online, instead of installing and maintaining it locally, hence the term “as-a-service”. Since SaaS vendors handle all the aspects of the software, you don’t have to worry about the complexities of data security, 24/7 uptime, and worldwide availability, and value-driven performance.?
Similar to other SaaS softwares, logistics SaaS provides users with a comprehensive solution available through a pay-as-you-go model from a cloud service provider. You essentially lease the application for your organization, and your back office and field personnel access it via the internet.?
All the essential components such as infrastructure, middleware, application software, and data reside within the service provider's data center. The provider manages both hardware and software, and under a suitable service agreement, ensures the availability and security of the application and your data. As it’s a pre-built solution, SaaS facilitates rapid deployment of applications for your organization with minimal upfront costs.
What is Bespoke/Custom Logistics Software??
As the name implies, bespoke or custom logistics software is a software application designed and developed to cater to the specific requirements and functionalities demanded by a logistics company. Unlike off-the-shelf SaaS solutions, bespoke logistics software is not pre-built or generic, but rather tailored to address a unique use case.
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The Suggestion - A Middle Ground: SaaS AND Custom Development
While custom logistics software offers deep personalization for highly specific needs, SaaS solutions provide the benefits of agility and cutting-edge technology. In our opinion, a strategic approach that combines both options can yield several advantages.
Mile's logistics software exemplifies this approach.
It offers a pre-built SaaS solution that serves as a robust foundation for automated delivery and logistics operations. This core solution allows clients to go live within days, immediately benefiting from features like:
But Mile doesn't stop there. Our team works collaboratively with clients to understand their unique use cases. Through our custom development capabilities, we can then extend the functionality of the SaaS platform to address specific requirements. This might include:
This integrated approach fosters a shift in perspective. Ownership of software becomes less relevant than the ability to effectively meet client expectations. In essence, this strategic combination empowers logistics operators to achieve optimal results.
Want to see how? Schedule a demo today.?