Episode 17: Software as a Service (SaaS) in Logistics

Discover the Value of SaaS in Logistics

In this week’s episode of the Freight Guru, our host Luis Lopez talks about how he transitioned into SaaS in his logistics business.

Listen to the full episode here

What is SaaS?

According to an article Software as a Service (SasS) is a software distribution model where cloud providers host applications and make them available to end-users over the internet. In this model, an independent software vendor (ISV) may contract a third-party cloud provider to host applications. In the case of larger companies, like Microsoft, the cloud provider might also be the SV.

Back in the days before SaaS, many logistics IT companies had high expenses in both hardware and software on top of overall expenses.

The installation of a private server, buying a VPN to access said server, and any support needed. Instead of an investment, it became a cost, then came SaaS where you can rent space in a cloud server and build any application or software.

Opportunities in SaaS

SaaS providers are always improving and innovating their services at no extra cost. This is a huge opportunity to scale your business with no upfront costs, minimal training, and self-education through YouTube. In other words, it’s really easy to learn.

According to Luis, “There are many approaches to valuing a SaaS business, the most common is using a revenue multiple. We calculate the revenue multiple of a public company by multiplying the most recent quarterly revenue by four and dividing that number into the enterprise value.”

SaaS gives companies the opportunity to scale through multiple income streams. For example, Microsoft’s acquisition of Linkedin was a major advantage for further developing their Dynamics CRM with LinkedIn’s 433M user data.

Linkedin itself is the best platform in the B2B space; it also is a strong service provider in their Premium package offering Linkedin Learning, Sales Navigator, Inmail, and much more.

SaaS in Transportation and Logistic:

If you are in transportation there’s a high probability that you are using Microsoft products. There’s also a very high probability that you are building relationships on Linked In more than any other social media platform.

Connect with The Freight Guru company page and our host Luis Lopez on Linkedin.

This is a major opportunity for Microsoft to gather information about C-level executives in the transportation business and create products for their benefit.

Building a SaaS for my Logistics Business

Managing multiple traditional trucking companies Luis couldn’t find a TMS for his business necessities. So, he decided to create his own application called TruckHub that can manage and track multiple modes of transport in one company. You can take a look at its FREE millage calculator here.

The app is expected to launch in 2022 with a TMS and back-office management system all in one place. The company is also in the works of building a CRM for logistics with a free version for both apps.