In this post, we discuss the cost of delivery management software. Including, pricing examples and what will determine how much you pay for the...
SaaS Delivery Management Software: The Definitive Guide
There are many types of delivery management software. As for licensing there are just two: SaaS and on-premise. Today, we’ll discuss them both.
There are many variants of delivery management software. As for licensing, there are just two: SaaS (software as a service) and on-premise.
Today we’ll discuss both of them. (With our main focus on SaaS)
In this post, you’ll see:
- What is SaaS delivery management software in the first place?
- How and why do you need to use it?
- What are SaaS and On-Premise solutions all about?
- The benefits of using each one
- And what are their differences
So if you’re looking to choose the best delivery software, you’ll enjoy our guide.
Let’s dive right in.
What is SaaS delivery management software?
Delivery management software can be a SaaS (software as a service) solution. It uses cloud technology and allows you to use the software on-demand without hosting the system yourself.
So unlike on-premise solutions, you don’t actually buy this software. Instead, you puchase the right to use the software like any other service.
It’s worth mentioning that the state of delivery in times of the coronavirus and cybersecurity threats associated with remote work had caused some providers to use hybrid cloud.
But for the purposes of this article, we’ll maintain our focus on software that operates on the public cloud as the most common SaaS version.
How do you use SaaS delivery management software?
Using SaaS delivery management solutions is fairly straightforward.
Instead of buying a physical copy or license to use the software, you purchase the right to use it.
Once you finish choosing a delivery management software, you subscribe to a provider like eLogii.
Typically, the subscription is a monthly or annual fee that you pay to use the software. You can also pay per number of vehicles or per tasks and delivery volume.
But in general, subscription plans come in the form of package deals. And different providers offer different package deals.
Usually, these packages are tier-based.
Each tier has a different price and set of capabilities that correspond to the size of your organization.
For example, you can choose delivery management software for small business or enterprise-grade solutions.
After you subscribe, the provider creates your account from which you can access the software.
Usually, you can log-in to your account from the provider’s website, and use the software via any web browser (Google Chrome, Mozilla Firefox, Opera).
That allows you to access the software from anywhere and via any device, while the system stores all the data on the cloud.
On the other hand, all of the system upgrades are automated.
The provider rolls out software updates and plug-ins directly to the cloud and informs you of the changes. Which means you don’t have to pay for any additional software components.
All of this makes this type of software much more flexible. You can easily upgrade your package to reflect the size of your organization as you use tactics to grow your delivery operations.
And it’s also one of the reasons why SaaS delivery management software is more affordable than on-premise solutions.
How much does it cost?
When it comes to the delivery management software market, there are a lot of options for you out there.
In fact, on Capterra there are 91 listings at the moment. And that’s up by eleven from September:
And each one of these providers has a unique subscription fee and payment method, which includes:
- Monthly subscription
- Annual subscription
- Pay per vehicle
- Pay per order/task/delivery
- Pay per user
- And others
But to give you a better idea of the delivery management software cost, we did some research.
We analyzed the basic packages of all 91 providers and calculated the average starting price you’ll probably have to pay. And it turns out that:
The average cost of SaaS delivery management software is $182.35 per month.
And when it comes to us and our main competitors, here’s a breakdown of the price (from low to high):
But let’s get into more detail.
Examples of SaaS delivery management solutions
All of the providers we’re about to show you are delivery management solutions.
Be it route optimization software or delivery orchestration, they all have similar capabilities. And all five of these examples promise to automate your delivery.
But there are slight differences. Some of which are worth noting:
GetSwift is a delivery management software provider from Australia, with offices in New York and Colorado.
This platform offers all of the typical software features, from scheduling and route optimization to electronic proof of delivery.
The main difference between GetSwift and other providers is the payment method.
Instead of a monthly subscription plan, their software has a task-based fee. The fee starts at $0.29 per task, and you receive an invoice based on the number of orders you deliver at the end of each month.
This can be a good option if you don’t necessarily have large order volumes, or if they vary from month to month.
Tookan is part of Jungleworks - a software development company with offices in the US, UK, India, Mexico, and Singapore.
Their SaaS delivery software primarily caters to large enterprises, which includes typical features like geofencing, route optimization, and automated dispatch.
The main difference between Tookan and others is that they offer add-on software services, like Tookan Tracker, which aren’t part of the main subscription plan.
Optimoroute is a route optimization software provider based in Palo Alto, California.
Although their main focus is on route planning and dispatch, their software has other vital capabilities like order tracking and API integration.
The biggest benefit of Optimoroute is that they offer a 30-day free trial.
Bringg is a delivery orchestration platform that’s typically used by large-scale enterprises, like Walmart, KFC, Seko, and Coca-Cola.
Their solution covers all of the many facets of managing last-mile delivery, from click and collect to third-party delivery.
The biggest drawback to this solution is that they have no price listings. And instead, you’ll have to contact them to receive a quote specific to your business model.
Our solution is a delivery management platform. We’re based in the United Kingdom, where we also own and operate a local delivery in London that runs on eLogii.
Even though we’re relatively new to the game, our end-to-end cloud-based solution is already helping companies all over, like Angelic Organics (Ilinois, USA) who said:
“Elogii provides more than just an efficient route, it has all the customer and driver support tools you can ask for and that is why we chose this over the alternative products.”
And that’s exactly right. We can boast of having 59 separate features that can cater to small businesses equally well as it does to large logistics operations like Unimasters.
Add to that a reasonable starting price of $159.00/month and a 14-day free trial, and you get a quality SaaS delivery management software solution that can outshine even the biggest brands on the market.
Benefits of SaaS delivery management solutions
We’ve already touched upon a few benefits of SaaS delivery management software.
Right now, we’ll dive deeper with three advantages SaaS solutions have over on-premise systems.
Specifically, you’ll see:
- How SaaS systems are more affordable than on-premise solutions
- The flexibility of adopting a cloud-first approach to delivery logistics
- And why it’s much easier to scale and grow with this software
Low overall cost
We’ve mentioned that the average monthly subscription fee of SaaS delivery management solutions is $182.35 per month.
This may sound expensive until you compare it to an on-premise solution.
On-premise software typically costs several thousand dollars, up front.
Besides the price of the software, you also have to invest in the hardware and software components that support it.
Plus, every time you need to update the software, you have to purchase the upgrades, patches, and plug-ins from the provider. Not to mention, physically install them across your network.
Most on-premise solution providers also don’t offer trial versions.
And those that do, you’ll usually have to track down on a promotional event and use it with their systems. (Which don’t always reflect your own)
By comparison, there are no extra or unforeseen costs with SaaS solutions.
Once you choose a provider, you typically sign up for a longer period (12, 24, or 36 months). The price doesn’t change for the duration of the contract, and you’ll pay the same fee each month.
The subscription fee is usually also very flexible. If the price is too high, you can customize it by removing essential components of the route optimization software.
And before you even pay a single dollar for the software, you can try it out.
Typically, free trials last 14-days. But that depends on the provider as some offer less (7-day trials), while others give you more (30-day trials).
And when your package isn’t working, or you want to scale the software to match the growth of your delivery, you can do it. It’s as simple as adding new features to the toolkit and paying as you scale.
Even without any of this, SaaS solutions are better and more affordable for small businesses.
Because of the low cost and almost immediate integration, as an SMB you can start using the software within a few days after subscribing to it. (Which is never the case with on-premise solutions)
A cloud-based solution
The biggest advantage of using a SaaS-based delivery management platform is that it operates on the cloud.
Cloud technology is what makes SaaS software so powerful, yet affordable and easy-to-use.
First, you can use the software via any device. That means you don’t need to set up additional tech stacks or infrastructure to support it. In general, you can use the hardware and systems that you already own.
Because it operates on the cloud, the provider can deploy all of the software upgrades, patches, and plug-ins automatically across the system.
In fact, you’ll just receive a notification about the upgrade, and a tutorial or demo that explains it.
Best of all, cloud-based delivery software can integrate with any other SaaS solution that you use thanks to APIs.
For example, you can integrate the software with an ordering platform like Shopify, GrubHub, or WooCommerce.
So once you log in, you’re ready to work. And that’s what makes SaaS a smooth and more intuitive user experience.
Flexibility & Scalability
As your company grows, a SaaS-based application allows you to scale your delivery services.
All of the software solutions that we’ve mentioned have all the features and capabilities to run and manage forward and reverse logistics, across both supply and delivery chains.
This means that it’s easy to scale without too much investment or postponing the process until you raise enough capital.
The ability to add or remove features and capabilities means you can scale up - and down - depending on your business needs. And you can do it on the go.
All you have to do is contact your provider and let them know that you want to customize your account.
What’s the difference between SaaS and on-premise?
What have you found out so far? Let’s take a second to recap the differences between SaaS and on-premise delivery management software.
In simplest terms, SaaS is a solution maintained and hosted by a third party (a provider, publisher, or developer of the software).
On-premise, on the other hand, is third-party software that you buy and use in-house that’s usually only supported by a third party.
But let’s take a closer look at the pros and cons of both options:
On-premise delivery management software
The advantages of on-premise solutions include:
- No monthly overhead costs
- Complete functionality
- All capabilities included
- No limits to data volumes
- Offline and online useability
- Customized to your specific needs
- Relies on your tech infrastructure
- High cybersecurity score
- Developer support
The disadvantages of on-premise solutions include:
- Large upfront costs
- May require additional tech investments
- In-house maintenance and hosting
- May not support third-party software
- Limited to specific devices or networks
- Extra costs may be required
- Slow implementation
- Low flexibility and adaptability
- Difficult to scale
SaaS delivery management software
The advantages of SaaS solutions include:
- Low initial cost
- Flexible payment options
- Fast implementation
- API integration with third-party software
- Fully automated end-to-end solution
- Complete visibility of the supply/delivery chain
- Virtually limitless storage on the cloud
- Third-party hosting and maintenance
- Suitable for any industry or business size
- And much more
The disadvantages of SaaS solutions include:
- Additional monthly overhead
- Not all capabilities included in the cost
- The price may increase as you grow
- Limits to functionality based on your plan
- Online useability only
- Relies on third-party infrastructure
- Third-party security and data protection
It’s clear that the innovation of cloud technology is the reason for so many benefits of SaaS solutions.
But we also know that it’s all up to you to make the decision which software you’ll choose.
The best delivery management software for your business
Now, let’s tackle the big question: What’s the best delivery management software for you and your business?
To do that, you’ll first have to ask yourself a few other questions:
- How much money are you willing to spend on delivery management software?
- Is it essential that you start automating your delivery operations? And why?
- What systems do you currently use? And are you willing to get rid of them?
- If not, do you plan to integrate the new solution with that software?
- How old is your current hardware? Do you plan to invest in new technology?
- What’s the storage capacity of your tech stacks? Are your hard drives full?
- What’s the current size of your delivery fleet? And how many orders do you handle?
- Are you planning on expanding your delivery operations? By how many orders?
- How much data do you plan on using? What’s the cost of maintaining that data
If you’re not prepared to invest a lot of money, or change the software that you use, while still gaining all of the benefits of DMS, then you probably need a cloud-based SaaS solution.
And if that’s the case, we can help you.
Whatever it is, we can support you all the way.