• September 17, 2020 3:41 pm
• by Ajanth

Freight management is a challenging business that requires innovative digital solutions to keep up with today’s modern customer demands. If you are a business owner or CEO of a medium-sized Freight Management business, this blog is for you. Throughout this post, we will drill down some of the benefits your business can potentially get when you outsource your IT operations to an offshore logistic software development company.

One of the most trending observations from the Freight Management business is how end-to-end Freight Management companies are now providing customized freight forwarding services in sync with their customer’s goals. In order to accomplish this, most of them rely on advanced tech capabilities such as IoT, advanced analytics, and data warehousing tools Integrated into their Freight Management System.

The greater demand for innovation and domain expertise required in developing custom digital solutions creates a need for Freight Management companies to partner up with a technology service provider who can come up with innovative solutions. In my opinion, an offshore software development company in India who specializes in the logistics domain can do this job efficiently.

The international shipping behemoth, Maersk made itself clear that they leverage offshore tech companies to face the turbulent technological challenges that are involved in their shipping business. With that being said, considering today’s increased development cost, can freight management companies use their in-house resources with multiple skill sets to accomplish this?

Will partnering up with an offshore software development company help them to solve these challenges? Let’s find the answer to these from this blog post.

Offshore merchants deliver innovation and eliminate unwanted development costs

Only a team that has strong domain knowledge and technical expertise can bring out innovative digital solutions that are vital for the growth and success of a Freight Management business.

Let’s say you need a dashboard that allows you to analyze the performance metrics that control shipping costs and delivery time. In order to build this dashboard, you need an exceptionally talented team of developers who can mine critical pieces of business data, communicate with customers, visualize raw data into powerful insights and predict multiple outcomes that are involved in the highly volatile Freight Management Business. Having a team like this on board will help you to eliminate the development of unwanted components that can consume your valuable time. This will allow you to save costs, and minimize turnaround time which thereby enables you to market your product faster and increase customer satisfaction.

Faster turnaround time

An offshore vendor who has solid experience in building custom solutions for Freight Management Companies will have a thorough knowledge of all the operational scenarios that are associated with the domain. This will be extremely beneficial when you want to deploy your software faster to the market or you need an MVP for short term needs. However, this may not be true for all vendors. Some offshore vendors that are based in countries such as China, Philippines, Ukraine, Vietnam offer software development services at extremely low rates. Some of them may not have the necessary skills and experience in delivering a working solution that properly aligns with the specific needs of the Logistics business. Partnering up with them can do more harm than good as they can easily deceive you by showing fake portfolios about their experience in a specific logistic domain.

Let’s take an example of a freight management business that serves freight transport services to multiple industries: to develop a cargo tracking software for their clients the vendor should have the necessary technical skills and domain knowledge needed to build the software. But if the vendor misses out on the domain expertise, they won’t be able to test the solution over common freight management scenarios. This will compromise the software they are developing and will create the need to build your software again from scratch, thereby scaling up costs and delivery time.

Predefined Product Development Strategy

Coupled with deep domain expertise, many offshore development companies that specialize in developing solutions for logistic businesses will always have a predefined product development strategy in place for all niches. The best example of this is building a solution for a freight management company that ships perishable goods. These goods need extra care during the shipping process. Their high sensitivity to humidity and temperature makes it more prone to damages. Without an end-to-end freight management system that can effectively track and detect the current status of these perishable goods, irreversible damage can be caused that leads the entire shipment to be rejected. Developing these types of software requires the knowledge of complex algorithms, powerful data analysis, AI, ML, and hardware integrations. Luckily, offshore dev shops have already set a product development strategy to intercept these challenges.