In this post, we discuss the cost of delivery management software. Including, pricing examples and what will determine how much you pay for the...
How to Choose Delivery Management Software?
How do you choose delivery management software? In this post, we’ll show you the complete picture so you can make the best decision for your business.
In this article, we will show you the complete picture of the market, and how to choose delivery management software in 2020.
After reading it, you will be able to make a better, more well-informed decision and choose the best solution for your business.
And in the end, you’ll even get to try a delivery management solution for yourself.
(More on that later)
For now, if you want to cut costs, increase output, drive more efficiency, and make it easier to manage day-to-day delivery operations, keep reading.
Let’s dive in.
Who Needs Delivery Management Software?
Online shopping and home delivery are driving factors in the on-demand economy, so too Delivery Management Software has become necessary in the delivery arena.
But who benefits from delivery management solutions? And what types of businesses can use them?
Delivery management software benefits two sides
It benefits both customers and the company that uses it.
Customers receive an outstanding service they desperately need, while companies can provide such services and still maintain a healthy profit margin.
When it comes to businesses, it can improve the delivery operations of any organization regardless of its size, stature, or type of industry.
A small business that operates one or two vehicles locally will mainly benefit from the ability of the system to improve cost-effectiveness.
Delivery Management Software can optimize routes such that the business can handle more deliveries despite the limited resources, while not taking on too much risk or sacrificing the quality of the service.
As for medium businesses, Delivery Management Software gives them the tools they need to grow and scale their operations.
They gain the ability to expand their service offer regionally or cross-country while maintaining the same level of control and visibility across all delivery activities.
Enterprises see investing in Delivery Management Software as a way to increase the efficiency of their large-scale operations beyond its current state, while still making room for innovation.
If an organization is running at maximum capacity at a minimal cost, it can introduce new offerings or integrate the latest technologies much easier into their current system.
And all of this can be applied across various industries and markets.
The feature-rich nature of some delivery management solutions enables a significant level of customisation based on the use case in question.
This allows the software to meet the demands of most commercial enterprises.
It can easily integrate with any specific service or technical requirements, or incorporate regulations that govern the market.
For any industry
A variety of companies use Delivery Management Software as their go-to choice:
- Food and beverage
- Retail delivery
- Pharmaceutical and healthcare
- Construction material and DIY
- Restaurants and dark kitchens
- Field service
- Third-party and courier services
Systems like these can just as easily accommodate the technical specs, such as vehicle requirements for example refrigerated trucks or vans in the food and beverage industry.
But they can also meet the unique nature of the service itself, as the case in the field service industry.
Likewise, companies can input industry-specific rules into the system.
For example, you can make sure delivery people meet the required safety measures when delivering construction equipment.
Or implement the good distribution practices of sensitive deliveries as the case in the pharmaceutical industry.
But it’s also important to make a decision based on the unique requirements of your company.
And to do that, it’s worth taking a look at what’s on offer.
The Market of Delivery Management Software
A decade ago, Delivery Management Software would have been a good tool to own.
Today when demand is exceeding capacity, the increasing complexity and cost of the last mile make it a decisive necessity when managing delivery operations.
This has also opened up the market for Delivery Management Software providers.
The choices available to you now are astonishing. But also overwhelming.
Perhaps, that is why it is so important to take a look at what kinds of solutions, features, pricing plans, and trials are on offer to you at the moment.
On-premise vs. SaaS Delivery Management Software
When it comes to the deployment of Delivery Management Software there are two main options to choose from: on-premise and cloud-based solutions.
On-premise delivery management software
On-premise providers sell the perpetual license to their software at a one time cost, and it is installed and set up on the user’s private systems, infrastructure, and servers. And because of that, it is also the more expensive option.
Upgrades and additional modules? - you guessed it, same again!
Besides the cost of purchasing the license or copy of the software, the user of on-premise software has to invest in software security, server and computing hardware, system integration, and in-house tech support.
Only then can an organization benefit from the software to its full extent.
Historically, it was one of the most common delivery management solutions and traditionally reserved for large-scale enterprises that could afford it.
These days, companies that can support on-premise solutions like Paragon Routing choose them due to the perception of better security, greater features, long-term cost-effectiveness, and complete control over the software.
However, the high upfront cost and low flexibility mean it’s not attractive to many small and medium-sized businesses, and in most cases out of their reach.
Also, practically speaking many of the ‘perceptions of old’ are no longer true.
That’s why many of today’s companies are choosing SaaS over on-premise.
SaaS delivery management software
There are two main characteristics of SaaS delivery management software that you should be aware of:
- SaaS solutions operate on the public cloud (or in some cases on a private cloud).
- SaaS companies sell their software as a pay-as-you-go subscription (paid annually or monthly).
After acquiring the service, the user receives access (a login) to the software on-demand with the ability to enter and store data.
The provider remains responsible for managing and updating the system via the cloud.
Cloud-based software is an Operating Cost vs. a Capital Cost which is the case with On-Premise Software usually.
Together with its always-up-to-date features, better connectivity, and user interface, it is easier to integrate.
And because it operates on the Cloud, it is also more agile, flexible, and scalable.
The continual evolution of cloud computing is managing to fix key concerns like security while eclipsing all others with the benefits and power of cloud-first adoption.
All of this has paved the way for SaaS companies such as eLogii, Onfleet, Bringg, Tookan, Getswift, Routific, Maxoptra, and others to offer their cloud-based systems as the superior derivatives of Delivery Management Software.
Dedicated Delivery Management Software vs. Distribution Logistics Software
If delivery management solutions are to be successful, their focus and range of features need to be use-effective when applied to delivery operations.
To serve them, rather than complicate them.
And in these terms, two variations appear. One involves dedicated software solutions, while the other is distribution logistics software.
What is distribution logistics software?
Distribution logistics software is an expansive solution that addresses every stage of supply chain management.
These systems incorporate a broad range of software pieces.
Each one deals with a particular aspect of operations: delivery, distribution, transportation, telematics, freight forwarding and brokering, shipping, and fulfilment.
Companies like Descartes see delivery as only a part of the overall functionality of their logistics system.
The focus of their software gravitates more towards global distribution and trade than the last mile.
That’s why this type of software is used by large-scale enterprises that can use its capabilities to operate their supply chains at an international level.
Because of this, the software is also more complex and not well-suited to the unique challenges of last-mile delivery.
And that’s where dedicated systems can help organizations.
What is a dedicated delivery management software solution?
Dedicated delivery management software is a tailor-made solution that meets the needs of last-mile delivery using the latest tech stacks and software architecture.
The system consists of one central platform modulated to support each stage of the supply chain.
Each module has a different purpose.
Where one deals with driver schedules, another with route optimization, a third one might control dispatching or customer service.
And while every component tackles a specific demand, all of them work interconnectedly within the dedicated software solution.
Companies that have developed these systems such as Onfleet, Bringg, or eLogii have made it possible to manage delivery operations more efficiently, regardless of the size of the business that uses it.
Dedicated solutions also pay more attention to the appearance of their software solutions.
While distribution logistics software is difficult to adopt and master, the sleek and intuitive user interface of dedicated platforms makes it easier for delivery teams to learn how to use them.
The specialized focus and delivery-driven functionality combined with a streamlined dashboard is yet another reason why dedicated solutions are becoming more and more popular among companies of all sizes.
How much does Delivery Management Software cost?
On-premise and SaaS solutions are also different in the way companies pay for their services. And the cost of these solutions depends on the type of software you decide to purchase.
Typically, an on-premise solution is a tremendous Capital investment, which comes at a high upfront cost.
Apart from purchasing the perpetual license or a sanctioned copy to the software, the company also has to supply all of the private infrastructures that will support the system.
This includes buying in-house servers and other computing hardware, hiring tech staff, as well as investing in other software architecture like security and firewall systems.
Historically, the tremendous upfront costs have meant that the only companies that could attain on-premise solutions were businesses that could afford it. Usually, only large-scale enterprises.
And while technologies like Paragon, Descartes, or Trimble TMW offer custom enterprise pricing the HUGE upfront cost means their solutions remain the more expensive option. A solution that remains out of reach for most small and medium-sized businesses.
Enter SaaS solutions.
SaaS (software as a service) companies take an entirely different approach to both how they sell their software as well as how they price it.
Unlike on-premise, SaaS providers only sell access to their software. In return for a subscription fee, a company can use the software via the public cloud without any additional expenses.
There is no need to invest in additional infrastructure, or costs to system integration, support, and maintenance.
Not to mention, a SaaS solution is an operating expense (Opex), rather than a capital expense (Capex).
Because of this, most small-to-medium businesses today can afford this type of software for their delivery service.
So, how much does a SaaS Delivery Management Software cost?
The average price of SaaS solutions starts in the $100s per month, but the price can also be higher or lower depending on the payment model or the length of the contract.
Luckily, payment models are as flexible and diverse as the software solutions themselves.
Companies like eLogii, Onfleet, and Tookan offer different payment packages depending on the capabilities you need and the size and complexity of your operations.
However, all three companies include custom pricing plans especially at the enterprise level, while the cost of the contract is reduced depending on the type of subscription (monthly vs. annual).
Best of all, the price tags remain the same regardless of the number of vehicles in the delivery fleet. This kind of flexibility means it’s much easier to scale operations and why it’s becoming such a popular solution among businesses.
At the other end of the spectrum, there are companies like Maxoptra, Routific, and Optimoroute that price their solutions per vehicle per month.
The vehicle-based payment model is great for businesses that require basic features to manage their small delivery fleets. But it can become less cost-effective when it’s time to scale your operations.
Most vehicle-based payment models are also tier-based. Advanced features remain locked until you update to a higher package deal.
Combine this with a growing fleet of vehicles, and it can become a lot less affordable, even with a fleet of five delivery vehicles.
Another unconventional payment model comes from GetSwift. An Australian company that offers their SaaS solution for a task-based fee (cost is established per delivery per month).
Again, this can be a good option for small-scale delivery services that are either just starting off or the nature of the business doesn’t support too much traffic.
So, if your plan is to rapidly scale your delivery service, the best choice is usually the simplest, pay-as-you-go monthly (or annual) subscription that most companies offer.
What’s the Best Delivery Management Software?
No surprise here. In our opinion, it’s eLogii.
eLogii is a new entrant to the market. When it comes to the capabilities of our software solution and the service that we offer, it has the power to handle most, if not all the demands of modern delivery, regardless of the size of the operations in question.
After years of on-the-ground experience building the leading asset-light last-mile delivery business in London, a business now doing millions of dollars of profitable sales, we knew there was something missing in the market.
We understand the challenges of day-to-day delivery operations intimately, and what can go wrong and how to leverage technology to enable a successful operation.
Using our operational learnings we have iteratively built technology to enable some of the most complicated delivery use cases in the market, and clearly understand the problems from an operational perspective. And that’s how and why eLogii was brought to life.
eLogii is an end-to-end cloud-based delivery management system that can support any delivery operation from the first to the last mile.
Why eLogii Is the Best Delivery Management Software
- Organize operations from one platform
- Stay on track with your team
- Integrate eLogii with any other system you use
- Get the best value for your money
- Created with your business in mind
- Managing deliveries just got easier
- Give customers a delivery service they deserve
Organize operations from one platform
Unlike having many different applications to handle each step of the delivery process, all you need is one.
eLogii is a dedicated solution. One central platform lets you automate all your delivery operations, from planning and routing to scheduling and execution.
Our modular platform has six core functions:
- Routing and planning
- Operations management
- Fleet management
- Customer experience
- Insight and analytics
But within each of those modules, there are also several other aspects of the delivery you can customize and configure to your need, like reverse logistics or electronic proof of delivery. And all of these options can be managed on one dashboard.
Stay on track with your team
Losing sight of drivers on the field during their daily routes is a real nightmare. And it’s an easy thing to happen, especially when there are so many tasks to handle during rushes or peak cycles.
That’s why visibility is crucial to quality assurance of any service. But how do you gain visibility across the entire length and breadth of the operation?
Our Delivery Management Software gives you that essential bird’s eye view of the entire delivery process, from start to finish. Be it the same day, next day, next week, or something sooner like the next hour, you can have a clear view of what’s happening live on-the-ground and what’s going to happen at every moment of each and every delivery lifecycle.
Thanks to the intuitive mobile app (iOS and Android compatible) for drivers that is available alongside our operator dashboard, driver tracking, and statuses are available in real-time. This gives you actionable insight at all times and allows you to manage all your resources efficiently and effectively.
The combination of driver tracking and live delivery statuses across the entire last mile allows you to proactively monitor performance against delivery schedules, customer requests, as well as keeping communication in context and up to date.
Let’s say a new order has just arrived. What do you do?
Go to the dashboard. Click re-optimize and the system will automatically assign to the most relevant driver, taking into account all your operational parameters. The order will then fit seamlessly into the Driver’s queue taking into consideration the live, real-life factors that may impact the successful delivery of an order (i.e. traffic, ETAs, time-windows, etc).
You can handle more deliveries faster than before while removing a lot of the burden from your team and ensuring your customer requests are always met.
Dispatchers can generate tasks quicker (manually, imported via CSV or API) and communicate them much more efficiently. Drivers will always remain in the loop and spend less time and fuel completing the task.
Most importantly, increasing visibility will allow you to optimize routes and schedules more efficiently and effectively than ever before, handle more pickups and/or deliveries,, cut costs, keep customers happy, and maintain a profitable operation that you have complete control over.
Integrate eLogii with any other system you use
If you’re already using a number of other software applications to receive your orders, communicate with your customers, or even manage your delivery fleet, you may want all this information to communicate seamlessly and automatically with your Delivery Management solution.
eLogii can easily integrate with virtually all internal or external systems or applications, thanks to our flexible APIs. This will allow you to connect and manage all the relevant information for your delivery operations easily, in one place!
For example, if you are using Shopify to sell your products, all you need to do is connect your Shopify account or any other e-commerce or order management system to eLogii using our APIs.
And once your integration has been completed, you’ll be able to receive orders directly to the main eLogii dashboard where you can automatically optimize and route your orders taking into consideration any relevant operational constraints. In addition, you’ll be able to sync all your delivery information and statuses, with your existing internal systems.
Get the best value for your money
We’ll be honest with you, eLogii may not be the cheapest option in the market, but that’s because eLogii is more of an all-encompassing solution than otherwise available in the market, allowing you to save significant cost in the long-run.
We guarantee there is no other solution on the market that offers such a wide range of features and capabilities at such an affordable price. In many cases, features that don’t exist in the market today or would otherwise only be available to large-scale enterprises from other vendors, at a very large cost.
We also offer flexible payment plans that meet your needs, as well as plans that suit the scale and stage of your business.
Created with your business in mind
Despite what you might have heard, Delivery Management Software is geared towards any (and every) business with delivery operations.
At least, that’s how we see the landscape, and how we developed our software. So, everyone can use it!
Unlike a lot of other solutions, eLogii can handle any delivery operation regardless of the size of the fleet, the number of pickups and/or deliveries you run each day or the complexity and constraints of your delivery operation itself.
eLogii isn’t built with a specific industry in mind, either. It can comfortably handle food or retail deliveries, as it can healthcare and construction, or even field service operations and third-party logistics.
The best part: it’s highly customizable. So, whatever the needs of your business, the system can take it no questions asked.
Managing deliveries just got easier
One of the challenges with introducing new and disruptive technologies is that being ahead of the curve doesn’t always mean everyone has caught up with the technology.
We wanted to avoid the complicated interfaces of the past, and bring Delivery Management Software to the 21st century.
That’s why our dedicated solution has all the functionality of a powerful end-to-end system, minus the cumbersome design, logic, and process flows associated with traditional, legacy solutions.
eLogii is built with an intuitive user interface following the latest best practices in UI and UX design, enabling the user to always be in control of the operations, easily.
It’s much easier to teach and train staff to use the new system, which means it’s much more scalable to use and implement organization-wide.
But we also wanted the transition to be as painless as possible. We understand that not all organisations want to have a full-blown API integration from day one, and so all data can also be seamlessly added and exported from the system using CSV files.
You can either use our CSV templates to import your data, or create your own custom mappings to your existing CSV files. Our workflows are designed to be as simple, seamless, and easy-to-use for everyone.
Give customers a delivery service they deserve
The truth about delivery (unless you’re a courier company!) is that it has long been seen as a cost centre for your business.
On the other hand, customers are demanding more efficient and timely delivery, in today’s world. And keeping your customers satisfied is one of your primary business objectives.
So, in order to meet the needs and demands of your customers in today’s digital age, not just offering delivery itself is important anymore, but also the overall delivery offering and experience that you provide.
Today’s modern customer wants their orders delivered fast and on time with the quality of care that would make a newborn blush.
And eLogii lets you take control of your operations to deliver the best service possible for your customers each and every time.
The route optimization capabilities also mean that your delivery fleet will run as efficiently as possible, within your operational parameters.
Live delivery tracking keeps customer service in the loop when each delivery will arrive. They can use the dashboard to see live ETAs for each delivery and notify customers accordingly, if not already being done automatically through the system using automated email and/or SMS notifications to customers.
Drivers also have access to the relevant customer details via the delivery app on their phones. They can use that information to provide a much deeper level of service, which includes any bespoke delivery and/or collections instructions provided by the customer.
Drivers also collect all the necessary proof-of-delivery items directly via the app (e.g. signature, photo, barcode, or any other custom confirmation), and this is available to see live in the operator dashboard at any time.
eLogii provides you with the perfect solution to ensure your customer is always at ease with your delivery offering, with ultimate peace of mind for safe and secure delivery.
Finally, our solution also lets you gain insight into what customers think about your service. Each customer can rate the quality of the driver and overall service offering.
This gives you valuable insight into your operations and can help you to continually optimize and improve your service to your customers.
We have everything you need to start improving your delivery.