The Four Cost Tiers
Tier 1 (Fleet Tracking & AIS-140 Compliance Dashboard): ₹3,00,000 – ₹8,00,000, 6–10 weeks · Tier 2 (Warehouse Management System): ₹8,00,000 – ₹22,00,000, 3–5 months · Tier 3 (Last-Mile Delivery & Route Optimization Platform): ₹12,00,000 – ₹35,00,000, 4–6 months · Tier 4 (Full TMS + WMS + Fleet Enterprise Suite): ₹35,00,000 – ₹90,00,000+, 8–14 months
AIS-140 Compliance Cost (per vehicle)
Device hardware: ₹3,000 – ₹8,000 · Annual SIM / data plan: ₹500 – ₹1,500 · Installation: ₹500 – ₹1,500 · Annual backend subscription: ₹500 – ₹3,000 · Total first-year cost: ₹4,500 – ₹14,000
Build vs Buy: Where Custom Development Wins
Buying off-the-shelf makes sense when deployment speed matters more than fit, when the carrier network and integrations a platform already has are valuable on their own, or when there's no in-house team to maintain custom software. Custom development starts winning once a business has workflows the off-the-shelf tools don't model well — multi-modal freight specific to Gujarat's port corridors, deep SAP/Tally/ERP integration, a 3PL that wants to white-label the platform for its own customers, or a transport company whose per-shipment SaaS fees are climbing past what a one-time build would have cost at their current volume.
How to Decide
Under 20 vehicles, single warehouse: Tier 1, or evaluate a low-cost off-the-shelf option like Traqo or FleetX before building custom. · Growing 3PL or distributor running multiple warehouses: Tier 2, with inventory accuracy and multi-location visibility as the priority. · D2C or e-commerce brand running its own delivery fleet: Tier 3, built around rider apps, proof-of-delivery and a customer-facing tracking experience. · Manufacturer or large distributor with existing ERP and multiple transport modes: Tier 4, scoped from day one around SAP/Tally integration and e-way bill compliance.
Frequently asked questions
- How much does logistics software cost to build in India in 2026?
- Custom builds typically range from ₹3 lakh for a focused fleet-tracking and AIS-140 compliance dashboard to ₹90 lakh or more for a full TMS + WMS + fleet enterprise suite, depending on scope, integrations and timeline.
- Is AIS-140 GPS tracking mandatory for my business?
- Yes, if you operate commercial vehicles — buses, taxis, trucks, school buses, ambulances or shuttles. Private, non-commercial vehicles are exempt, but any vehicle used commercially falls under the mandate, with fines up to ₹20,000 and permit cancellation for non-compliance.
- Should I buy a TMS or build custom logistics software?
- Buy when you need fast deployment and a platform's existing carrier network or integrations are valuable on their own. Build custom when your workflows, ERP integration needs, or long-term per-shipment SaaS costs don't fit what off-the-shelf platforms assume.