Building Open APIs: Empowering customers in the logistics industry

Rethinking connectivity in logistics

Logistics companies rely on multiple different systems for shipment tracking, gate access, equipment management, and warehouse operations.

Powered by different technologies or service providers, these systems often function in silos, causing inefficiencies and reliance on third-party portals.

Open APIs, or Application Programming Interfaces, are changing how things work. Rather than requiring customers to use a provider’s specific application, Open APIs allow customers to create their own interfaces and connect directly to the provider’s backend systems.

This enables speed, flexibility, and higher efficiency. For example, a global logistics company with several divisions can better manage parcels, freight, warehouses, and stores.

In this kind of setup, the logistics company provides easy-to-use APIs (for tracking, rates, labels, and pickups), so customers can connect their own systems, like warehouse management or transport management, directly instead of switching between different websites.

What are Open APIs and why logistics companies should care? 

Open APIs serve as secure digital contracts that allow systems to talk to each other. Unlike private integrations, they can be used by external customers, partners, and developers. Open APIs, allow logistics companies to:

What makes Open APIs essential?

Open APIs do more than connect systems. They help logistics companies become more agile, encourage innovation, and give customers more control.

When used well, Open APIs can bring big improvements across the industry.

• Seamless integration: Using Open APIs, logistics players can connect their internal systems (TMS, WMS, mobile apps) directly to logistics providers, eliminating the need to toggle between multiple portals or manually re-enter data.
• Operational efficiency: Automated data exchange reduces friction, minimizes errors, and accelerates workflows, from mission planning to gate transactions and exception handling.
• Enhanced customer experience: By allowing companies to build their own interfaces, Open APIs give them control over how they interact with logistics services.
• Scalability & flexibility: They enable logistics providers to scale services across partners and geographies, without rebuilding front-end systems.
• Real-time visibility: Push-based APIs and event-driven architectures allow instant updates on shipment status, equipment availability, and exception alerts.
• Innovation enablement: They enable advanced use cases, such as predictive maintenance, AI-powered ETA predictions, and autonomous yard management.
  

How a U.S. Class I railroad company is leveraging Open APIs for efficiency, resilience, and real-time visibility

Nagarro has partnered with a leading US Class I railroad to implement a modern Open API platform supporting intermodal operations.

The client’s end customers, particularly large logistics companies and drayage operators, rely on their internal applications to create and manage intermodal missions (planning and execution of pickup and delivery tasks for containers entering and exiting rail terminals.)

For instance, customers plan drops and pickups at the terminal using the railroad’s app. Still, this information is not seamlessly integrated into their own backend transportation management systems or mobile apps.

This limits their ability to customize workflows or dispatch interfaces, causing dependence on multiple portals across railroads instead of using a single unified UI. Additionally, it leads to delays in mission planning coordination and difficulties in extracting reports for analytical requirements.

Together, we have designed and implemented a secure, agile Open API ecosystem, transforming how customers interact with intermodal operations. Clients now can gain the ability to integrate mission-critical functions directly into their own digital platforms seamlessly.

This will allow the railroad’s customers to:

• Integrate mission creation with their backend systems and track their own mobile apps and TMS platforms, removing the need to toggle between multiple portals
• Create work orders for pickups, drops, and gate transactions in advance, and dispatch them directly to drivers through their own apps
• Reduce reliance on the railroad’s front-end systems for routine workflows, providing dispatchers and drivers with a seamless experience within their own environments.

The API calls in the background are being designed to handle interactions with the railroad’s systems, helping them:

• Eliminate duplicate data entries for mission details, container numbers, and transmit pickup instructions by directly integrating them into customer systems.
• Reduce operational friction at terminals, enabling dispatchers to transmit orders and receive confirmations instantly.
• Enhance driver efficiency by providing direct updates for gate instructions, parking assignments, and exception notifications on driver-facing apps. 
• Enable faster issue resolution by immediately flagging seal exceptions, mission errors or waybill mismatches through APIs, allowing faster support and less idle time. 

The solution uses OpenAPI 3.0 standards, strong token-based authentication, and a modern microservices backend. This ensures it can grow and adapt as needs change.

The case illustrates how Open APIs are more than just technical tools. They help drive modernization and teamwork throughout the logistics industry via sensor and telemetry data and enable: 

• Real-time customs clearance automation
• Yard management using connected drones or autonomous scanners
• Load visibility and ETA prediction using AI-powered APIs

A few other case studies of Open APIs in the logistics space

Union Pacific (UP): UP provides a comprehensive API suite for real-time shipment tracking, equipment release, and exception management. Major customers integrate these APIs into their internal TMS platforms, eliminating the need for manual data entry and portal logins. Source: 

Canadian National Railway (CN): CN’s Open API platform offers GPS-based car tracking, Bill of Lading status, and ETA insights. Clients like Cando Rail and Ray-Mont Logistics integrate these APIs into their own systems for terminal planning, equipment monitoring, and AI-driven decision-making, bypassing CN’s front-end entirely. Source: 

BNSF Railway: An early leader in customer-facing APIs, BNSF offers tools for equipment ordering, gate reservations, trip visibility, and status updates via its developer portal. Companies like Schneider National embed these APIs into their TMS, enabling dispatchers and drivers to manage intermodal moves without logging into BNSF’s portal. 

Uber Freight: Uber Freight’s APIs connect directly to shippers’ TMS platforms, allowing them to tender loads, track shipments, and access rates—all within their own systems. This gives customers full control over the user experience. 

How logistics companies can embrace the Open API model

While the Open API model promises tangible benefits for logistics companies, they must take a strategic approach to this implementation.

At Nagarro, we believe that an Open API implementation roadmap must have the following steps:

1. Develop a strategic API vision: Align API development with business objectives and customer demand.
2. Implement governance frameworks: Define API versioning, documentation, rate limiting, and access control policies.
3. Prioritize security: Use OAuth2, token-based authentication, and activity monitoring.
4. Collaborate with technology partners: Work with experts like Nagarro, who bring deep domain and technical experience.
5. Co-create with customers: Launch pilot APIs with select clients, gather feedback, and iterate rapidly to drive continuous improvement.
6. Continuously monitor & optimize: Track usage, response times, and evolve APIs for new capabilities.
   

What’s next?

Open APIs serve as a foundational pillar for a more flexible and customer-focused logistics industry. By providing these APIs, companies help their customers work more efficiently and encourage new ideas. 
Are you looking to improve your logistics operations? We can help you understand how an API-first approach can strengthen your organization for the future.