The logistics industry is one of the most dynamic sectors, which is experiencing changes due to the implementation of advanced technologies. Logistics applications are now available to be used in the management of shipping and delivery processes as well as to monitor and control deliveries.
Logistics industry statistics reveal that the global market was estimated to be worth US$ 5.4 trillion in 2023. The industry is expected to grow at a compound annual rate of 4 percent (CAGR). 2% from 2023 to 2032 and is expected to reach the market size of US$ 7. 9 trillion.
Such exponential growth is putting pressure on logistics providers and shippers to develop custom logistics apps. However, how much would it cost to develop an intelligent logistics application in the year 2024? Which one should be included? All these aspects are going to be analyzed in detail in this article.
Introduction to Logistics Apps
Now that we have some idea about the costs, let us know what logistics apps are and how they are helpful.
A logistics app is a mobile or web application used to facilitate shipping and delivery of goods. They offer timely and accurate information on the supply chain hence increasing its visibility. Some of the most frequent applications that can be developed with the support of logistics software development services include fleet management applications, warehousing applications, delivery tracking applications, and others.
The apps connect drivers, warehouses, admin staff, customers and provide information about:
- Asset tracking
- Fleet management
- Inventory management
- Route optimization
- Delivery status updates
- Proof of delivery
- Analytics and reporting
In short, logistics apps help optimize last-mile delivery, ensure transparency in the supply chain, and provide actionable insights. This leads to:
- Increased efficiency
- Reduced operational costs
- Better resource management
- Improved customer experience
The demand for logistics apps will further rise as customers expect real-time communication and updates on their shipments.
Logistics is a broad domain encompassing inventory management, order fulfillment, shipment tracking and more. Based on the problem they solve, logistics apps can be categorized as:
1. Fleet Management Apps
Fleet apps allow logistics managers to organize, track and optimize fleet operations. Key features include:
- Real-time fleet and driver tracking
- Route optimization
- Fuel usage monitoring
- Vehicle telematics integration
- Maintenance alerts
- Workflow automation
2. Warehouse Management Apps
Warehouse apps enable efficient inventory and order management inside warehouses and distribution centers. They provide:
- Inventory tracking
- Order processing
- Pick/pack optimization
- Warehouse mapping
- Labor management
- Analytics and reporting
3. Delivery Tracking and Management Apps
These apps provide end-to-end visibility and tracking across first-mile pickup, last-mile delivery and reverse logistics. They have features like:
- Automated dispatch and routing
- Proof of delivery
- Driver and customer communication
- Returns/reverse logistics management
- Delivery analytics
4. Freight Management Apps
Freight apps help logistics companies schedule, manage and track national or global shipments across sea, road or air. Key capabilities:
- Booking management
- Documentation handling
- Container tracking
- Customs clearance
- Rate management
- Analytics
The app type influences the total logistics mobile app development cost. Complex apps like fleet or warehouse apps cost more compared to basic tracking apps.
Factors that Determine Logistics App Development Cost
Calculating the exact cost for your logistics app depends on several factors. Here are the key considerations:
1. Platform (Web + Mobile)
Will your app be available as a website, mobile app or both?
- Web apps cost comparatively less than mobile apps
- iOS apps are more expensive to build than Android apps
- Developing for both web and mobile platforms increases the overall cost
Complex enterprise apps are mostly web-based for convenient access. Consumer apps for drivers or delivery agents are built as mobile apps.
Plan your technical architecture wisely based on the intended users.
2. Custom vs Readymade Platforms
You can either build a custom logistics app from scratch or use off-the-shelf software like FarEye, Bringg, etc.
- Custom apps provide specialized features but cost more and take longer to build.
- Readymade platforms allow faster deployments but offer limited flexibility.
Evaluate both options and choose based on your budget, feature needs and time-to-market.
3. Complexity and Features
The number and type of features directly impact development efforts and pricing. Apps with advanced capabilities will be pricier.
Some functionality adds more complexity than others. For instance, route optimization, warehouse mapping or predictive analytics require specialized resources and time.
Prioritize must-have features over nice-to-haves to control overall scope and development costs.
4. Technologies and Architecture
Modern apps require the integration of emerging technologies like AI/ML, IoT, real-time tracking, etc. Adoption of such technologies increases back-end complexity and upfront development efforts.
Other architectural considerations, such as cloud databases, third-party APIs, payment gateways, and security protocols, also impact timelines and pricing.
5. Location of Development Team
The location and experience of your app development partner are big cost drivers. Eastern European and Asian developers typically charge less than US-based teams.
However, ensure you partner with a technically skilled and reliable team regardless of location to avoid quality issues or hidden costs later.
Detailed Cost Breakdown for Logistics App Development
Now that we’ve explored the key variables, let’s analyze the typical cost components.
Note: The prices below are appx. industry averages for simple to intermediate complexity apps. Costs ultimately depend on the app features, technologies, team experience, etc.
A. Discovery and Concept
- Research: $500−$1500
- Concept testing: $1000−$2500
- Prototype: $1500−$5000
Before kicking off full-scale development, validate your app idea through user studies, market analysis, basic prototyping, etc.
While this planning phase may not seem an obvious cost, it prevents wastage of bigger development efforts down the line.
B. UX/UI Design
- Wireframing: $1000−$3000
- Visual design: $3000−$7000
Focus on user-centric and intuitive interface designs suited for field agents. This improves app adoption and productivity.
C. Development
Admin portal: $16000−$40000
Driver mobile app: $10000−$25000
Customer mobile app: $8000−$20000
Backend + API: $12000−$30000
The backend and web admin panel tend to be more complex compared to mobile apps. Optimize the architecture to control cloud hosting and serverless computing costs.
D. Testing and Deployment
- Testing: $5000−$15000
- Deployment: $1500−$4000
Allocate at least 20% of the time for comprehensive testing across devices, locations, and network conditions. Follow agile deployment models for faster iterations.
E. Post-launch Support and Enhancements
- Support: $2000+ per month
- Minor enhancements: $5000+
- Major upgrades: $15000+
Sign up for extended support post-launch to enable quick fixes and continuity of business operations.
Keep buffer time and resources for future enhancements based on user feedback.
Total Cost Range: $75,000 to $200,000+
As has been seen, the overall cost is not fixed and depends on the app’s features and technologies. The largest number of SMBs, 41%, invest in the first app version between $75,000 and $125,000.
It is suggested that a simple, low-cost app should be developed first to capture market feedback. The app can then be progressively improved in subsequent phases. This will assist you in controlling costs and risks much more effectively.
How to Reduce Logistics App Development Cost?
Here are a few tips to build your logistics app in a budget-friendly manner without compromising quality:
Leverage readymade solutions: The fact that the configurable logistics platform is used as the starting point decreases the dev effort notably. You only have to adjust it rather than write the whole program from the ground up.
Focus on must-have features: Do not be tempted to pack too many features in the first version of your application. Go quick to market with 20% solutions that drive 80% of your business.
Build modular architecture: Creating loosely coupled modules allows for the easy addition of capabilities later. You enhance parts rather than re-architecting everything.
Offshore development: Hire specialized resources from regions with lower hourly rates. But ensure to account for communication overheads.
Use low-code or no-code tools: Leverage visual development platforms like AppMaster to prototype and build apps faster with less coding.
Cloud infrastructure: Use serverless computing and managed services to reduce hosting, operations and infra costs significantly.
Final Word
We hope this guide offered you a clear picture of logistics app development costs, considerations, and tips to optimize pricing. Focus on identifying the right set of capabilities that deliver maximum business value at minimum viable costs.
If managed well, investing in a logistics app can provide long-term productivity gains, cost savings and competitive differentiation. So, plan diligently and take a strategic approach instead of only chasing short-term cost reductions.
