Top IT Services for Transportation and Logistics

IT services for transportation and logistics involve streamlining the IT infrastructure and processes of transportation and logistics companies to improve overall efficiency and customer satisfaction. With 67% of shipping and logistics firms having a formal digital transformation plan, logistics IT solutions providers ensure these plans are implemented successfully and attain a greater return on investment (ROI). 

While it shares many similarities with typical IT services providers, an agency that focuses mainly on IT services for freight companies has many characteristics that make it stand out: 

• Knowledge and experience of the day-to-day operations and nuances of the transportation and logistics industry 
• Proficiency in various logistics and freight technologies, such as transport management systems (TMS) and warehouse management systems (WMS) 
• Familiarity with the regulations that cover the transportation and logistics industry, such as the Department of Transportation (DOT), Customs and Border Protection, and Environmental Protection Agency (EPA) standards. 

These agencies also help companies address various challenges within the industry, such as: 

• Constant changes in regulations to transportation, logistics, and related technologies 
• Lack of knowledge regarding varying regulations and processes across different countries, states, and regions 
• Inconsistent or incompatible data across different systems  
• Difficulties with integration of newer technologies, such as cloud platforms, with legacy systems 
• Lack of experience in protecting sensitive data such as customer and financial information that’s vulnerable to cyberattacks 
• Disruptions caused by IT system failures that lead to significant financial losses 

Success story 

Our agency experts have chosen a case study by VC3, a Los Angeles-based IT agency that played an immense role in bringing a shipping company to the digital age. 

• Challenge: Harbor Division, which hauled and stored containers in LA and Long Beach ports, partnered with VC3 to modernize its IT infrastructure. Many of its IT systems were not set up correctly and lacked adequate data storage, which put the company at risk in the case of a systems crash. 
• Solution: VC3 quickly oversaw the client’s IT infrastructure, set up servers for optimized performance, and ensured all critical data was backed up. When the client moved to a new office, the agency was there to migrate its entire IT infrastructure in one day. 
• Results: With VC3’s help, Harbor Division updated its systems to the latest industry standards. At the same time, it freed up its core staff from IT tasks and allowed them to focus more on core business operations. The client praised the agency’s 24/7 support services that ensured any IT issues were addressed promptly and minimized their impact on the business. 

Agencies offering IT solutions for transportation and logistics streamline operations and ensure efficiency across the supply chain in many ways.  

Their services include: 

• Fleet and driver monitoring 
  Tracking the location and status of vehicles to optimize routes and cut fuel costs. They also check drivers’ behavior to ensure compliance with regulations and improve driver conditions. 
• End-to-end shipment tracking 
  Monitoring the status of shipments as they travel to their destination in real-time. The resulting data is collected and analyzed to optimize delivery times and minimize risks of delays and disruptions. 
• Predictive maintenance  
  Using data analytics to identify potential maintenance issues in vehicles before they occur, minimizing downtime and repair costs. 
• Warehouse management 
  Managing and tracking inventory levels and stock movements to reduce costs and prevent stockouts. Agencies that provide logistics IT services also analyze warehouse layouts to maximize space and streamline workflows. 
• Route and load optimization 
  Identifying the most efficient shipping routes based on distance, traffic, and delivery time windows. These agencies also ensure vehicles are loaded efficiently to maximize capacity and reduce transportation costs. 
• Order fulfillment 
  Optimizing order picking, packing, and shipping processes for improved efficiency and reduced errors. Transport logistics IT solutions companies use historical data to predict future demand and ensure the right products are available as needed. 
• Transportation Analytics 
  Collecting and analyzing data from various sources to optimize operations and make data-driven decisions. IT services for transportation and logistics also use data to identify future trends, risks, and potential maintenance issues before they happen. 

Success story 

The following case study is a solid example of the numerous services a transport and logistics software solutions provider can provide for their clients: 

• Challenge: Saudia Cargo, one of the leading air cargo carriers in the Middle East, tapped ScienceSoft to create a customer portal for its air freight carrier fleet. The portal had to enable the company to communicate directly with clients and securely exchange confidential information such as invoices and price rates.  
• Solutions: ScienceSoft built a customer portal with a secure environment for business-client communication, transactions, and document flow, as well as an intuitive interface for customers to easily apply for cargo transportation services.  
• Result: The new customer portal provided Saudia Cargo’s customers with a way to quickly request services and costs, significantly reducing deal negotiations. The secure data exchange eliminated security risks from email communication and freed the sales team from repetitive manual email tasks. 

IT services for transportation and logistics cost ranges from $15 to $25 per shipment for ongoing fees, with one-time implementation costs between $10,000 and $45,000, depending on the complexity of the integration and services required. 

Here’s an overview of the typical costs for different types of IT solutions for logistics and transportation businesses: 

• Operational management fee: $15-$25 a month 
• General setup and training: $5,000-$25,000 
• Managed IT solutions: $130-$250 monthly per user  
• Server setup and management: $5,000-$20,000 
• Data storage fee: $5-$500 per month 
• Spreadsheet integration: $5,000-$10,000 
• FTP flat file integration: $12,500-$15,000 
• EDI/XML interchange: $30,000-$35,000 

The final bill you’ll get from a transport and logistics software solutions provider can also be impacted by various factors, such as: 

• The scope of services to the rendered 
• The size, expertise, location, and reputation of the service provider 
• The cost of acquiring software licenses and hardware  
• The number of warehouses and fleet vehicles to be covered 

The top 50 agencies that provide IT services for transportation and logistics in DesignRush charge an average fee of $50 per month. 7.4% offers bespoke IT services for small to midsize companies with limited budgets of $1,000 and below. For larger enterprise-level customers, 5.9% of the agencies listed can handle complex IT support projects with marketing budgets totaling $50,000 and up. 

You should hire IT services for transportation and logistics because of the numerous benefits your business can yield. From cutting costs to improving customer satisfaction, these service providers can help you stay competitive and achieve your goals. 

Some of the key advantages that IT services for freight companies provide include the following: 

• Improvement in efficiency and overall productivity 
• Easier and less resource-intensive route planning 
• Automation of repetitive tasks, such as electronic documentation and data entry 
• Quick identification and resolvent of bottlenecks and other inefficiencies 
• Stockouts and overstocking prevention due to better inventory management 
• Customers peace of mind and satisfaction thanks to value-added features 
• Streamlined communication between customers, carriers, and logistics providers  
• Data-driven decision-making thanks to collected data and analytics 

Success story 

To better understand how IT solutions for transportation & logistics benefit businesses, our research team highlights the following case study that illustrates the partnership between Hexaware Technologies and a leading industry player. 

• Challenge: A major US logistics and transportation company hired Hexaware Technologies to provide managed IT solutions to support its rapidly growing business. This included consolidating multiple services, reducing operating costs without compromising performance, and establishing a robust accountability mechanism to ensure consistent service quality. 
• Solution: To address the client’s requirements, Hexaware developed a comprehensive custom solution that covered various aspects of the client’s operations. It built a specialized portal to manage carriers, shipments, deliveries, and custom applications that improved user experience and functionality. The agency also designed a fleet management system to support the client’s fleet operations. 
• Results: After a year of work, the client reported a 40% reduction in testing efforts and 35% lower ownership costs. The new value-added programs were also credited for decreasing ticket volume by 20%. 

To choose the best IT services for transportation and logistics, we recommend following these steps: 

1. Define your goals and budget 
   List the objectives and pain points you want the agency to address. Ensure it aligns with the budget you will set aside for the project's duration. 
2. Research providers 
   Look for agencies with significant experience in your region's transportation and logistics market. Agency directories such as DesignRush can make your search easier as they allow users to filter agency categories according to location, services, budget, and many other criteria. 
3. Evaluate services and capabilities 
   Review the agency’s services and solutions and evaluate how they will benefit your project. Note any awards and certifications, which are also a good indicator of competency. 
4. Send out RFPs 
   Your request for proposal (RFP) should list the project’s timeline, objectives, budget, and other key information. Include your updated contact information to make it easier for bidders to contact you. 
5. Schedule a meeting 
   Once you have a shortlist of prospects, call each to set up an interview. If possible, attend the meeting at the service provider’s office, as this will allow you to see where and how they work. 
6. Compliance and data security 
   Ensure the provider has robust security measures to protect your data against cyberattacks and disruptions. Also, verify whether they comply with GDPR, CCPA, and other data privacy regulations. 
7. Request for references
   Ask if they can provide case studies and references from previous clients. Customer reviews on DesignRush and the agency’s Google Business Profile are also good sources of insight into its deliverables. 
8. Negotiate terms 
   Ensure the contract clearly outlines all aspects of the project, including the scope of work, pricing, deliverables, and confidentiality.  
9. Select a partner 
   Choose a transport logistics IT solutions provider that aligns with your project needs. 

Need more assistance in finding reputable IT services for transportation and logistics? Visit our Marketplace today, and our research team will help you find experienced IT solutions providers for transport and logistics. Provide us with some basic details about your project, and we’ll send you a shortlist of agencies that closely match your requirements—free of charge. 

To find the best IT solutions for transportation and logistics on DesignRush that fit your budget, we recommend filtering your search according to your project’s budget. Use the search filters to narrow the results based on minimum budget tiers or hourly rates and sort them by highest or lowest. 

Here are some of the highly rated IT services for transportation and logistics according to budget tiers from $1,000 to over $50,000:

You can also use the filter function to search based on location, client type, and specializations to narrow down the results even further. 

The key success metrics used in IT services for transportation and logistics vary depending on the stage of the supply chain and other factors.  

The most commonly used metrics can be categorized into the following groups:  

• Order Management 
  These metrics focus on orders and returns processing and make sales and production more efficient: 

• • Shipping time: The length of time it takes for companies to ship an order on or before the requested date 
  • Order accuracy: The percentage of orders that were successfully fulfilled and delivered to their destination 
  • Perfect order: Measures the number of orders that were shipped without damage, delays, or other issues 
  • Number of shipments: The amount of loads the company sent out during a certain period. 
• Supply 
  Metrics that show how well the final goods are moved through the supply chain. These are used to assess operational efficiency and identify potential bottlenecks in the pipeline. 

• • Lead time: Measures the length of time between when a customer places an order and when they receive it 
  • Capacity utilization: How much a company uses a particular resource, whether in the form of products or professional services 
  • Productivity: Determines the effectiveness of the company’s machines, processes, and manpower in meeting their deliverables. 
• Inventory 
  Gauges the effectiveness of inventory purchasing and production processes. It helps determine customer satisfaction and cash flow and helps forecast inventory purchases. 

• • Customer backorder rate: How often a company cannot fulfill an order 
  • Inventory turnover: The number of times a company sells all its stock of a specific product 
  • Inventory to sales ratio: Measures the amount of inventory in stock versus the number of fulfilled sales 
• Distribution 
  Focuses on the systems that move the product to customers directly or via distributors. This metric is also used to measure operational efficiency. 

• • Trailer utilization rate: Provides insight into how a company loads its trailers and how effective its load planning is 
  • Warehousing costs: Covers the total expense of running a warehouse, including equipment, energy, and labor 
  • Average dwell time: The length of time a carrier remains idle before processing for pickup and delivery 
• Transport management 
  Covers the various parameters affecting the delivery of goods. Aside from measuring efficiency, government agencies also request these metrics due to their impact on supply chains. 

• • Delivery times: The speed at which an entire order arrives in full  
  • Average days late: The number of days between the delivery due date and when the customer receives the order 
  • Transportation costs: Tracks the total cost of shipping an order from beginning to end, including administration, warehousing, and order processing costs 

The questions you should ask before hiring IT support for transportation and logistics include: 

Its Relevant Background 

1. What’s your experience in providing IT services to transportation and logistics companies? 
2. What were your biggest challenges in this sector, and how did you address them? 
3. Could you provide us with transport and logistics case studies? 
4. Could you provide references from previous clients? 
5. What are the pricing models that you offer? 
6. What are the terms and conditions of your service agreement? 

Its Services and Processes 

1. What specialized IT services do you offer to transportation and logistics companies? 
2. Do you offer 24/7 emergency support for critical issues? 
3. What are your average response times for support requests? 
4. Can you customize your services to fit our specific needs and processes? 
5. What security measures do you have in place to protect sensitive data? 
6. What’s your disaster recovery plan in case of a system failure or data breach? 
7. How do you ensure compliance with DOT, FMSCA, and other industry regulations? 
8. Can you scale your services to accommodate changes in the project requirements? 

Relevant To Your Project 

1. Does your estimated timeline to complete this project align with ours? 
2. Who are the team members who will handle this project, and what are their credentials? 
3. How will you ensure the project will be completed on time and within budget? 
4. What will be our methods of communication, and how often will we communicate? 
5. How much input and resources do you require from our end? 
6. What type of reporting can we expect, and how often? 
7. What are the key performance indicators you’ll use to track the progress of our project? 

The best providers of IT services for transportation and logistics in the US are: 

1. App Makers USA 
   • 4.9 stars on DesignRush (26 reviews) 
   • 5.0 stars on Google (5 reviews) 
   • Top clients: CVS, iPermit Pro, Sun Scooter, Kardder 
2. Instinctools 
   • 4.9 stars on DesignRush (18 reviews) 
   • 5.0 stars on Google (10 reviews) 
   • Top clients: Bleichert, CANet, Bonnet, SpecTec 
3. ELEKS 
   • 4.9 stars on DesignRush (27 reviews) 
   • 4.9 stars on Google (32 reviews) 
   • Top clients: Aramex, GRTgaz, DPD, Eset, Pace 
4. Simform
   • 4.9 stars on DesignRush (20 reviews) 
   • 5.0 stars on Google (9 reviews) 
   • Top clients: Redbull, International Hockey Federation, iHealth, Stubbs & Woottons 
5. EffectiveSoft
   • 4.9 stars on DesignRush (16 reviews) 
   • 4.8 stars on Google (59 reviews) 
   • Top clients: YourFitness.com, AI Clearing, MGLogistic, Zest Dental Solutions