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Best Logistics Software for Small Businesses
Small business shipping is difficult to manage. Limited head counts, no IT teams, and growing shipment volumes all add complexity. Unfortunately, not all logistics software is built with these realities in mind.
That’s why SMB shippers need a specific approach when evaluating solutions.
This guide covers categories, must-have features, and key attributes to help SMB shippers find the right system for them.
Types of Logistics Software for Small Businesses
When evaluating logistics software, you should be aware of the different categories.
Transportation Management Systems (TMS)
TMS for shippers, large or small, have a few common characteristics. They're almost always a central hub for planning, executing, and optimizing freight. High-quality TMS will also accommodate features such as multi-carrier and multi-mode.
Warehouse Management Systems (WMS)
Warehouse management systems improve transparency at facilities. These typically come with options such as inventory tracking, picking, and general warehouse workflows.
Dock Scheduling Software
Dock scheduling software is generally used to improve transparency and communication between shippers and carriers. They come with features such as automated appointment booking (based on availability in time and dock doors) which is great for reducing congestion and wait times. This has the added benefit of saving on detention fees and demurrage charges.
Parcel Shipping Platforms
Parcel shipping platforms help simplify aspects of parcel management, including tracking incoming and outgoing parcels and helping enforce delivery rules. Some other features include label generation and rate shopping for small package shipments.
For some small businesses, simply using one of these tools may meet their initial needs. But businesses growing their operations due to demand—or seeking to grow the operations—may want to combine multiple logistics software types.
What to Look for in Logistics Software for Small Businesses
The global logistics software market size is projected to grow from $17.47 billion in 2026 to $31.74 billion by 2034. Though there are many different types of logistics software for small businesses across different categories, there are certain key attributes to look for.
Fast Implementation
Potential downtime and learning curves for managers and employees are some of the biggest roadblocks to the adoption of logistics software. Look for tools that can be implemented fast, without relying on internal IT or consultants.
Multi-Carrier Rate Comparison
Shippers typically want features that can be easily understood at a glance, such as multi-carrier rate comparisons. Access to instant pricing across contracting and network carriers allows you to quickly evaluate rates and make a decision, saving time and money.
Access to Carrier Networks Without Volume Minimums
Ideally, small business logistics software will provide access to carrier networks without volume minimums. This is important for SMBs to maintain negotiating power for contracts.
Ease of Use
Logistics software often bills itself as being able to save transportation teams time. However, a tool that requires studying and in-depth knowledge to use does the exact opposite, which is a problem when many SMBs cite ease of use as their leading concern in tech platform selection. Keep an eye out for software with a simplified, easily navigable user interface.
Transparent Pricing
Software pricing is notoriously tricky, with different plans encompassing different features (with the best ones almost always hidden behind the highest costing paywall). That’s why many SMB shippers prefer subscription-based software with no hidden onboarding or integration fees.
Responsive Customer Support
Look for a logistics software option that has real customer support. Small business owners are more vulnerable than enterprises, and downtime or errors can be disastrous for your operations and reputation. Ensure that real humans can be reached in a timely manner if shipments happen to go wrong.
Red Flags to Avoid When Evaluating Logistics Software
Below is a quick list of red flags to avoid when considering supply chain software for small business:
- 3-to-6-month implementation time frame. This is usually a sign of enterprise-first architecture that considered small business buyers as an afterthought.
- Pricing models that only work at scale. High upfront licensing and usage minimums will likely prove too taxing for the average SMB.
- Single-mode tools (parcel-only or FTL-only). Such tools limit growth and create future switching costs. Ideally, settle on a tool that can scale with your business in the long run.
- Lack of integrations. You want software that is flexible and can communicate with a variety of tools. Look for integration with commonly used tools such as QuickBooks, NetSuite, Shopify, and more.
- Overbuilt systems with unnecessary complexity. These slow adoption for your teams and can impede daily usage.
When Basic Logistics Software Isn’t Enough Anymore
Signals you’ve outgrown everyday tools like spreadsheets, emails, and phone calls include:
- Managing multiple carriers manually.
- Increasing shipment volume.
- Lacking centralized visibility across shipments.
- Still relying on manual freight auditing (which means missed cost recovery).
- Juggling disconnected tools (spreadsheets and emails).
When you upgrade to something like a TMS for shippers, you get not only execution, but also planning and optimization. The result is a centralized tool you can use to scale your business while keeping costs optimal.
Frequently Asked Questions About Logistics Software for Small Businesses
What Type of Logistics Software Does a Small Business Need First?
The type of logistics software a small business needs first will likely cover a particular basic aspect of operations, such as parcel management. However, once they are ready to scale, small businesses should start to look for tools that encompass more features, such as a TMS.
How Do I Know if I’ve Outgrown My Current Shipping Tools?
You have likely outgrown your current shipping tools when your shipment volume has started to increase and you’re struggling to balance all your disconnected tools. It may also be when you begin to experience limited visibility into your operations.
Find the Right Fit for Your Freight
The best way to find the best logistics software type for your small business is to take advantage of any free trials or demos for a hands-on experience.