How to determine the cost of developing a logistics application?

How to determine the cost of developing a logistics application?

The logistics industry is at the center of everything related to the transportation, delivery and storage of goods. As of now, the industry is showing steady growth in the on-demand logistics market.

In 2021, according to AlliedMarketResearch, the global on-demand logistics market was close to $12.4 billion. By 2031, this number is expected to reach $80.6 billion with a CAGR of 20.8%.

This increase has led to on-demand logistics app development, which has convinced budding entrepreneurs to find out the cost of logistics app development. There are a huge number of players who are willing to provide solutions for the logistics industry in the form of apps. In fact, there are several logistics companies that are willing to build their own app.

The need for mobile application development for logistics

Creating a logistics app is nothing new to the logistics industry. However, why is that?

Working in logistics is data intensive. From tracking reports to transaction reports and invoices, everything must be recorded in the system for review. These insights help predict potential business and optimize workflows for different use cases. However, there are several obvious reasons behind the inclusion of a mobile app in the logistics industry.

Some of the most common logistics mobile app development needs are listed below:

1. Reduce the amount of paperwork needed

In terms of workflow, logistics is a very paper-intensive industry. Paper heavy as in there are a lot of documents that are processed on a daily basis. Documents such as waybills, commercial invoices, packing lists, arrival notices, etc. In logistics, applications can easily be used to enter data directly into the system. This would reduce the additional use of paper and also reduce the carbon footprint.

2. Better control over vehicle tracking

There are several transportation apps and software that help in vehicle tracking. Some examples of this type of apps are Tookan, Motive, OptimoRoute, Samsara, etc. These apps help to simplify the tracking problem and manage vehicle control by creating logs during the start of the journey. Enabling this in the process makes it easier to track the vehicles being shipped overall.

3. Optimization of costs, time and resources

Reducing the number of resources used or optimizing existing use is one of the biggest direct reasons behind the development of a logistics mobile application. Using transaction tracking applications makes it easy to manipulate the data and the transactions themselves. By delegating data management work to the application, the amount of associated cost, time required, and overall associated resources will be reduced.

4. Optimization of work procedures

A manual workflow that is completely dependent on human resources can be very slow. For example, even in the case of a single file or transaction, there must be communication between two parties, which requires further delay in the process. However, with a SaaS-based application, data can be accessed from anywhere at any time. These apps also provide access-based login, so only the authorized person can access this data. Also, for operations such as form creation, data entry, data management, bulk data processing, etc., applications can be used to further optimize the process.

5. Processing of invoices

There are several types of invoices such as proforma invoices, running invoices, bulk invoices, creative invoices, etc. There is basically an entire industry of document automation that pretty much only handles invoice processing. There are several versions of software and mobile apps to help with the suffering.

6. Data archiving

Data management and storage is one of the biggest use cases for logistics applications. For applications that take care of logistics after the transaction is created, the data is stored directly in the central storage.

Note: To know about the best DApp development companies, click on the given link.

Different types of logistics apps for logistics mobile app development

There are several types of logistics apps that can be viewed from the perspective of logistics mobile app development. These are:

  • Fleet routing software
  • Supply chain management
  • Route optimization software
  • Real-time traffic management software
  • Fleet management software
  • Asset tracking and management software
  • Software for real-time supply chain visibility
  • Digital twin technology
  • Artificial and augmented reality technology
  • Traffic management

A complete guide to logistics application development

There are certain steps to follow to understand “How to create a logistics application?”. In order to truly determine logistics app development costs, we need to understand the various steps that are taken to create a logistics app and the features of a mobile logistics app. So here is our quick guide to logistics app development:

1. Define the target audience

It is one of the most important steps in the logistics application development process. Defining the target audience is empirical to understand the cost of logistics application development. This is because no two workflows or operating cycles are alike. Therefore, the employees who deal with them are also different. This makes a whole difference that adds more to logistics application development.

2. Do market research

Before you hire someone and even consider the idea of ​​costing to develop a logistics app, it is essential to understand the need for your app idea in the market. Right now, every market is saturated with applications of different ideas. Therefore, it is important to conduct market research to determine the sustainability of this idea. Market research can also help in understanding the current applications and the pitfalls associated with them.

3. Select Development Platform

The choice of platform i.e. iOS and Android for development directly affects the cost of logistics application development. For example, if one decides to get native applications, the cost of developing a logistics application would be doubled. However, if you opt for a hybrid application, the development costs of the logistics application will remain with only one application. This is because a hybrid application allows a single code base to be used on different operating systems through a single build. The main disadvantages are performance issues.

4. Select the technology stack

The demands of the logistics industry are very diverse. There are so many different use cases that have their own requirements. For example, push notifications, GPS tracking, remote access and much more. In order to enable these features, it is imperative to choose a set of technologies that can meet the requirements.

Now, it is of utmost importance to understand that not all technologies integrated in the application are open source. Some require fees, and this is especially the case for APIs that are used together. Also, the cost of hiring developers for different technologies varies. Each of these aspects, when combined, begins to affect the cost of logistics application development.

5. Create a wireframe and design

The wireframe of an application is the skeleton of the entire application. The app design is how it will actually look with all colors, content, logos and buttons. Another determining factor in logistics application development costs is the number of hours spent creating the wireframe and design.

6. Frontend and backend development

Frontend and backend development is a major contributor to logistics application development costs. In the backend part, developers develop the server side of things. However, with a frontend, frontend developers write the script for the user interface. The cost of developing a logistics application depends on both the number of man-hours spent on this work and the expertise of the developers.

7. Test your application

Testing is a rigorous process and can be done in many ways over a long period of time. The main goal of testing is to detect bugs and create a smooth experience for the end user. The amount of time spent on this process increases the cost of logistics application development.

8. Run the application

At this stage, if we leave aside the app’s marketing budget, companies are required to pay a registration fee during its launch. This fee is a one-time fee for the Google Play Store, while an annual subscription has to be paid for Apple. This also adds to the logistics app development costs.

9. Maintain your application

Usually, the developers behind the application provide support and maintenance in accordance with the SLA (Service Level Agreement). However, you as a client have to pay the company for extended support. This is also added to the logistics app development costs.

Logistics application development costs in 2023

There are no fixed costs associated with logistics similar to mobile app development costs in any other industry or niche. Logistics app development cost also depends on many factors like any other app like required number of hours, technical knowledge, company experience, number of features etc.

Still, in the Appinventiv article, the company provided some numbers, which are listed below:

A simple on-demand application $30,000 to $120,000
A moderately complex on-demand application $120,000 to $200,000
Comprehensive application $200,000 and up

Note: To read our article on app development costs in 2023, click on the link provided.

Wrap up!

Understanding logistics application development costs is essential. Every startup and entrepreneur starts with their vision or app idea with a budget. Understanding the different spaces where budget is expendable is empirical to the logistics mobile application development process. It allows you to predict possible points of expenditure and estimate the cost of developing a logistics application for their project. With this article, we have tried to do the same for you.


Aparna Growth strategist

Aparna is a growth specialist with a wealth of knowledge in business development. He values ​​marketing as a key driver of sales, keeping up with the latest developments in the mobile app industry. Her approach to getting things done makes her a magnet for the most complex tasks. In her free time, which is few, you can find her playing Fussball.

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