Why SaaS is the way to go for Logistics Industry

February 20, 2023

SaaS is all the rage, especially post Covid-19, with every business working remotely and adopting multiple technologies. Logistics companies have a limited possibility of working remotely - a ship has to sail on the seas and train has to run on rails!! No Work From Home for the drivers, pilots, loaders, fork-lift operators!!

Then how SaaS will help Logistics companies? Here are some good reasons to adopt SaaS:

Reason # 1: No more branch offices

  • Logistics companies set up a network of offices- typically connected to an operations branch or a hub as a back office to process payments and documents, prepare plans and control day to day movements.
  • Post Covid most managers are required to work from home and monitor INFORMATION. You watch CCTV remotely, you check GPS data to find whether vehicle is moving, you check POD images to confirm delivery etc.
  • This \"Digitization\' of work requires Software to manage end to end activities and the software needs be available anywhere, anytime and to anybody (with due access rights). SaaS enables such digitization and in a short span of time.

Reason# 2: Capex is OUT, Opex is IN

  • Given uncertainties in everything post Covid-19, Logistics companies do not want to commit any large capital expenditure and they also face cash flow issues
  • Also, why pay for likely number of users after 12-18 months today? With SaaS, you pay only for current usage and increase or decrease payments as per business every month.
  • Also, SaaS gives you an All-in-one cost structure with no hidden charges. Thus, your payments are predictable and can be provisioned very easily

Reason# 3: Latest technology on the tap

  • Technology changes faster than a chameleon changing colors. Your in-house team may be loyal, but is surely not capable of keeping up with super-fast changes in the world of technology
  • With a range of Digital requirements such as Fuel Cards, Toll Payments, E-way Bill, GPS, IoT- it can be very challenging for in-house teams to keep up and deliver new modules every month.
  • SaaS companies invest in multiple technology teams and spread their costs over many customers. They are also able to attract best talent that is keen to work on new technology. As there is no dependency on few long term people- chances of "ransom" salaries are much less.

Reason# 4: Best practices to drive your operations

  • Logistics companies need to compete in a cut-throat market- efficiency is the only way to earn profits. SaaS companies learn from domain experience of multiple customers and incorporate these into software features.
  • Adopting ready to use practices built into SaaS helps them to offer best possible solution to customers
  • Also, you can easily find talent that has used the SaaS solution elsewhere and thus "import" highly productive talent in your organization.

Reason# 5: Business continuity and security

  • Traditionally, Logistics companies took comfort in keeping all their IT infrastructure in front of their eye and felt their data was secure. With advent of Internet, they had to connect their infra to larger world. This has opened flood gates of possible security attacks.
  • Frequent "Once in a Century" Events- Floods, pandemic, protests etc.- have made many offices out of bounds for days if not weeks
  • SaaS companies host their software in world-class facilities such as Microsoft Azure Cloud or Amazon Cloud. The infrastructure in such facilities has multiple back ups and they back up all data into multiple countries.
  • Cloud companies have an army of people monitoring any cyber-attack and can act much more swiftly and with greater exerptise than any in-house team

Does this mean there are NO RISKS involved in adopting SaaS? Of course there are risks and you want to be careful when you select your SaaS partner.


Pedigree and track record

What is the background of the SaaS company? Have they been around long enough? What is the organization size? Are they profitable and well funded?

Customer base

Who else is trusting the SaaS system- in your geography and from people whom you know. Can they provider references to check them out? Are they dependent on few customers for survival or risks are spread over larger base?

Breadth of solution vs. depth of solution

Do they cover multiple business models? Can the software cover all departments of your company? What is the depth of their domain knowledge? Can they integrate with other systems ?

Team and Support

What is the team composition of SaaS company? Do they have domain experts along with technical experts? Can they explain software easily to your team members down the line? What is their support policy? Will they answer a call at 2 am?


SaaS is here to stay and as more and more companies adopt it- it will become the ONLY WAY to consume technology. As a logistics company, you want to offer best possible service at competitive rates.

Thus, adopting SaaS is the best way forward for logistics companies.