Logistics Management Costs- What are you paying for?

Software solutions might seem expensive, but when considering everything that surrounds a solution you will be able to tell whether a software solution is reasonably priced and whether your return-on-investment will be worthwhile.

When buying a Logistics Management software solution the following costs will determine the purchase price:

Research and Development

This is a very important factor in determining a software package cost. Companies spend considerable amounts of time and money on research to ensure that a need exists for a specific software solution and that the solution tackles specific challenges. The solution also need to be measured, evaluated and adjusted. In addition, once a software solution has been developed, it needs to stay updated with changes in technology and cater for new economical and industry challenges.

For this to be realised, continued research and development is necessary to ensure that a software solution, such as logistics management software,  can assist companies in achieving desired outcomes.

Customisation and Configuration

The cost of buying a logistics management software package will depend on a companies needs. Should a package be bought off the shelf and used as is it might be more affordable. However, should a company require specific alterations and configurations to the software to suit their business requirements and ensure competitiveness, additional costs will surface.

Setup and Installation

The price on a software package usually entails the price of setup and installation. With some software packages, such as anti-virus software, setup and installation is fast and easy. while other solutions, such as transport software solutions require configuration to a company’s requirements as well as integration with existing software systems and packages and will require more labour and time for installation.

Training Needed

To ensure that a company is deriving maximum benefit from a logistics management software solution and using all applications to the company’s full advantage, training of on-site personnel is required with most software devices. The advantage of sticking to one software vendor is that training will go faster and solutions will easily be navigated as software packages usually have similar features.

Licensing Fees

Licensing fees are an important consideration when purchasing a logistics management software solution. Toe ensure that the software is regularly updated and comes from the legitimate vendor with the after sales support and additional benefits, it is crucial to ensure that your software solution licenses are updated according to the vendors requirements, which should be revealed and explained to you upfront when purchasing a software solution.

After Sales Services

When purchasing a logistics management software package, keep in mind that the upfront costs may include after sales support, which is crucial to avoid business loss owing to software downtime. After-sales support enables you to immediately get help when you experience a problem with the selected software.