Descartes Systems Group Strengths, Domain Expertise, and Key Differentiators
Descartes leverages technology and networks to streamline intricate business operations, primarily within logistics and supply chain management. Their solutions, primarily cloud-based, aim to enhance productivity, performance, and security for logistics-centric enterprises. Descartes' strategy centers on expanding and maintaining its globally interoperable Logistics Technology Platform. This platform integrates the Global Logistics Network (GLN), various modular and interoperable logistics applications, and the largest community of logistics-intensive companies worldwide.
Descartes Systems Group Recent Developments
In October 2021, Descartes Systems Group unveiled artificial In October 2021, Descartes Systems Group introduced AI and ML enhancements to its Routing Mobile & Telematics suite. These upgrades aid customers in achieving exceptional optimization results and leveraging real-world outcomes to enhance fleet performance.
The AI and ML enhancements comprise Descartes AI Advisorâ„¢, a module that mimics the expertise of Descartes' route optimization specialists. By guiding users through a series of questions, it automatically configures optimization settings, simplifying and expediting the setup process. AI Advisor compares configuration scenarios to identify optimal route optimization strategies aligned with business objectives. Additionally, machine learning algorithms refine predictions for location, transit, and stop-time calculations using real-world data from mobile and IoT sources, continuously improving route planning accuracy and efficiency.
Descartes Systems Group Mergers and Acquisitions (M&A) Activities
In April 2023, Descartes Systems acquired the assets of Localz, a technology platform specializing in customer engagement during goods or services delivery. Localz's platform integrates real-time vehicle location tracking and communication to offer secure, transparent, customer-centric SaaS solutions, enhancing the delivery experience. Customers can schedule services and deliveries online and track their order progress in real-time with advanced notifications. Additionally, Localz assists retailers in offering a streamlined "click-and-collect" solution, optimizing the in-store collection process.
In February 2023, Descartes Systems acquired GroundCloud, an American company specializing in final-mile logistics solutions, for approximately $184 million CAD ($138 million USD). GroundCloud, based in Minneapolis, Minnesota, offers a platform that integrates operations, safety, and compliance for final-mile carriers. Their solutions include order management, route planning, driver training and monitoring, asset management, and operational analysis. GroundCloud's platform also features video telematics for driving event detection and coaching, aligning with Descartes' goal to enhance safety in final-mile logistics
In January 2023, Descartes Systems acquired Supply Vision, a US-based provider of shipment management solutions tailored for Logistics Services Providers (LSPs) in North America. With a strong track record, Supply Vision assists LSPs in digitalizing operations and overseeing the shipment lifecycle. Their modular applications enable LSPs to manage various aspects of shipments, including quoting, routing, booking, and final delivery coordination. Additionally, the Supply Vision platform seamlessly integrates with real-time visibility solutions like Descartes MacroPoint, offering LSPs and their clients enhanced insights into shipment status and location.
In July 2021, Descartes Systems Group acquired GreenMile, a provider of cloud-based mobile route execution solutions primarily serving the food, beverage, and wider distribution sectors. GreenMile's scalable solutions, designed with advanced capabilities, cater to the global distribution industry. Clients leverage a cutting-edge platform infused with machine learning to enhance service quality and travel time standards continually. GreenMile's innovative solutions are adopted by major food and beverage corporations to digitize final-mile delivery processes, reducing paper usage in the supply chain, enhancing efficiencies, and elevating customer satisfaction.
In May 2021, Descartes Systems Group acquired Portrix Logistics Software (Portrix), a German-based provider of multimodal rate management solutions tailored for logistics services providers (LSPs). Portrix has over a decade of experience assisting global LSPs, including major industry players, in streamlining and automating complex shipping rate management processes. Their flagship product, Global Price Management (GPM), facilitates global shipment routing, pricing, rating, and capacity allocation management for clients. Portrix's solutions seamlessly integrate with essential systems requiring swift, accurate, and comprehensive shipping and pricing options, including CRM, transportation management, and customer-facing online booking platforms like Descartes Kontainers.
In March 2021, Descartes Systems Group acquired QuestaWeb, a US-based provider of cloud-based customs and regulatory compliance solutions, specializing in foreign trade zones (FTZ). QuestaWeb's FTZ solution enables logistics services providers (LSPs) and importers to automate processes and adhere to US Customs and Border Protection (CBP) regulations for operating FTZs in the US. This solution can function independently or as part of QuestaWeb's broader platform, aiding importers and LSPs in managing shipment lifecycles. The acquisition was valued at approximately $36.0 million, funded through existing cash reserves.
On November 6, 2020, Descartes acquired all shares of ShipTrack Inc., a provider of cloud-based mobile resource management and shipment tracking solutions. The acquisition was valued at approximately $19.0 million (CAD 25.0 million), net of cash acquired, financed through existing cash reserves. Additionally, contingent consideration of up to CAD 25.0 million in cash may be paid if ShipTrack achieves specified revenue targets within two years post-acquisition.
Descartes Systems Group Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Descartes Systems Group applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Descartes Systems Group and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Descartes Systems Group Transportation Management Suite customers.
Descartes Systems Group Overview
120 Randall Drive
Waterloo, ON, N2V 1C6, Canada
1 519-746-8110
https://www.descartes.com/
Ownership: - TSE: DSG
Number of Employees: 2200
Functional Markets: ERP Financial, Procurement, SCM, TRM,
Key Verticals: Automotive, Consumer Packaged Goods, Distribution, Healthcare, Manufacturing, Professional Services, Retail, Transportation,
Descartes Systems Group Key Enterprise and Cloud Applications
Descartes Systems Group Transportation Management Suite
Descartes Systems Group Revenues, $M:
| Type/Year | 2022 | 2023 | YoY Growth, % |
|---|---|---|---|
| Total Revenues, $M | Subscribe | Subscribe | Subscribe |
| Enterprise Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
| Cloud Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Descartes Systems Group Revenue Breakdown By Type, $M:
Descartes Systems Group Enterprise Applications Revenues By Functional Markets, $M:
Descartes Systems Group Enterprise Applications Revenues By Verticals, $M:
Descartes Systems Group Revenues By Region, $M
| Region | % of Total Revenues | 2023 Total Revenues, $M | 2023 Enterprise Applications Revenues, $M | 2023 Cloud Applications Revenues, $M |
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| Americas | Subscribe | Subscribe | Subscribe | Subscribe |
| EMEA | Subscribe | Subscribe | Subscribe | Subscribe |
| APAC | Subscribe | Subscribe | Subscribe | Subscribe |
| Total | Subscribe | Subscribe | Subscribe | Subscribe |
Descartes Systems Group Direct vs Indirect sales
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| Type % | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe |
Descartes Systems Group Customers - Breakdown by Geo, Size, Vertical and Product
List of Verified Descartes Systems Group Customers
No. of Descartes Systems Group Customers: 24000
No. of Descartes Systems Group Enterprise Applications Customers: 24000
No. of Descartes Systems Group Cloud Customers: x
No. of Descartes Systems Group Cloud Subscribers: x
Descartes serves 24,000 customers globally and operates the global logistics network, an extensive electronic messaging system utilized by various stakeholders, including freight companies, manufacturers, distributors, retailers, customs brokers, and government agencies. Some notable clients include 3M, Air Canada, Coca-Cola Korea Bottling Company, Delta, DHL, Emirates, Samsung Electronics, The Home Depot, United Parcel Service, and the US Department of Census, among others.
Descartes Systems Group Market Opportunities, M&A and Geo Expansions
The Descartes Logistics Technology Platform brings together a worldwide network of logistics stakeholders, enabling seamless business transactions and access to a wide range of applications tailored to support logistics-intensive enterprises. It serves as a cohesive integration of network, applications, content, and community, empowering businesses in the logistics sector to thrive.
The Logistics Technology Platform integrates the Global Logistics Network (GLN), which spans various transportation modes, with a diverse range of modular and interoperable web and wireless logistics management solutions.
The Logistics Technology Platform is crafted to enhance productivity and performance for businesses across all scales. Leveraging the GLN's multimodal logistics community, it facilitates swift and cost-effective connectivity and collaboration for companies.
Descartes Systems Group Risks and Challenges
Investing in acquisitions and other business initiatives carries various risks that could harm the company's operations. These include significant financial commitments, diversion of management focus, increased resource demands, and disruption of ongoing activities. Acquisitions specifically pose challenges such as integration difficulties, assumption of liabilities, navigating foreign regulations, and potential discrepancies in valuation assumptions. Additionally, there's a risk of not realizing anticipated benefits or depleting cash resources. These risks could adversely affect their business.
Descartes Systems Group Ecosystem, Partners, Resellers and SI
In June 2022, Descartes Systems announced a partnership with WeatherOptics to enhance visibility and risk management in transportation for freight brokers and third-party logistics providers (3PLs). The integration of Descartes MacroPointâ„¢ Capacity Network and WeatherOptics Impact Scores offers granular weather insights tailored for transportation management. By incorporating WeatherOptics' weather-related risk scores, including road conditions and business disruption, organizations can proactively identify potential disruptions up to seven days in advance. WeatherOptics simplifies weather impact data into easily understandable risk scores or delay times, assisting businesses in predicting and mitigating issues such as trucking delays, warehouse disruptions, and shifts in consumer demand.
In July 2021, Descartes Systems Group announced the availability of its Descartes MacroPoint solution on SAP Store, the online marketplace for SAP and partner offerings. Descartes MacroPoint integrates with SAP Transportation Management using SAP Integration Suite and/or SAP Extension Suite, providing real-time, multimodal supply chain visibility to manufacturers, retailers, distributors, and logistics services providers. Through Descartes MacroPoint, businesses using SAP solutions can enhance customer service, improve distribution efficiency, foster better collaboration with stakeholders, and mitigate disruptions and late delivery penalties. SAP Store offers a simplified digital customer experience, enabling users to discover, try, purchase, and renew over 1,800 solutions from SAP and its partners. Additionally, for each purchase made through SAP Store, SAP will plant a tree.
Descartes' sales team operates regionally and is trained to market their solutions to specific customer segments. In North America and Europe, they primarily promote products through direct sales efforts targeting both current and potential users.
In the Asia Pacific, Indian subcontinent, South America, and African regions, their focus is on enabling the success of channel partners. These partners include distributors, alliance partners, and value-added resellers in other international operations.
Descartes Systems Group Cloud Infrastructure Insights
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Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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