Descartes Systems Group Strengths, Domain Expertise, and Key Differentiators
Descartes uses technology and networks to simplify complex business processes. They are primarily focused on logistics and supply chain management business processes. Their solutions are predominantly cloud-based and are focused on improving the productivity, performance and security of logistics-intensive businesses. Descartes strategy is focused on growing and operating its interoperable global Logistics Technology Platform. Descartes Logistics Technology Platform uniquely combines the Global Logistics Network (GLN), a wide range of modular and interoperable logistics applications and the largest community of logistics-intensive companies in the world.
Descartes Systems Group Recent Developments
In October 2021, Descartes Systems Group unveiled artificial intelligence (AI)- and machine learning (ML)-based enhancements to its Routing Mobile & Telematics suite. The enhancements help customers achieve outstanding optimization results and learn from real-world outcomes to maximize fleet performance.
The AI and ML enhancements include:
Descartes AI Advisor™, an intelligent configuration and monitoring module, emulates Descartes’ route optimization experts’ knowledge. After walking the customer through a series of questions, Descartes AI Advisor automatically configures optimization settings and parameters. This simplifies and accelerates the configuration process. Configuration scenarios are compared to determine the best route optimization strategies to meet business goals. AI-Advisor can evaluate the results of the system in operation and recommend configurations changes to maintain optimal performance.
Machine learning algorithms have been applied to location, transit and stop-time calculations. Predictions for these key performance factors are continuously refined by monitoring real-world outcomes from mobile and Internet of Things (IoT) sources in combination with influencing variables. Tens of thousands of data points and variables are evaluated continuously to make learned adjustments to improve route planning accuracy and execute more predictable and efficient routes.
Descartes Systems Group Mergers and Acquisitions (M&A) Activities
In July 2021, Descartes Systems Group acquired GreenMile, provider of cloud-based mobile route execution solutions for food, beverage, and broader distribution verticals. GreenMile’s scalable mobile route execution solutions have been built with unique capabilities to serve the global distribution industry. Customers benefit from a next-generation platform that incorporates machine-learning to continually improve service and travel time standards. GreenMile’s innovative solutions are used by some of the world’s largest food and beverage companies to digitize final-mile delivery processes, thereby eliminating paper from the supply chain, increasing efficiencies and improving customer satisfaction.
In May 2021, Descartes Systems Group acquired Portrix Logistics Software (Portrix), a provider of multimodal rate management solutions for logistics services providers (LSPs). Headquartered in Germany, Portrix has been helping its customers, which include some of the world’s largest LSPs, streamline and automate complex global shipping rate management processes for more than 10 years. The company’s core product, Global Price Management (GPM), is used by customers to enable global shipment routing, pricing, rating and capacity allocation management. Portrix’s solutions integrate with key systems that need fast, accurate, and complete shipping and pricing options, including CRM, transportation management, and customer-facing online booking platforms, such as Descartes Kontainers.
In March 2021, Descartes Systems Group acquired QuestaWeb, a provider of foreign trade zone (FTZ) and customs compliance solutions. Headquartered in the US, QuestaWeb provides cloud-based customs and regulatory compliance solutions. QuestaWeb’s FTZ solution allows logistics services providers (LSPs) and importers to automate processes and comply with US Customs and Border Protection (CBP) regulatory requirements for operating a foreign trade zone in the US. The FTZ solution can be operated as a standalone module or as part of the company’s wider platform that helps importers and LSPs manage the lifecycle of shipments.
In February 26, 2021, Descartes acquired all of the shares of VitaDex Solutions, LLC, doing business as QuestaWeb, a US-based provider of foreign trade zone and customs compliance solutions. The purchase price for the acquisition was approximately $36.0 million, net of cash acquired, which was funded from cash on hand.
In November 6, 2020, Descartes acquired all of the shares of ShipTrack Inc. (“ShipTrack”), a provider of cloud-based mobile resource management and shipment tracking solutions. The purchase price for the acquisition was approximately $19.0 million (CAD 25.0 million), net of cash acquired, which was funded from cash on hand. Additional contingent consideration of up to CAD 25.0 million in cash is payable if certain revenue performance targets are met by ShipTrack in the two years following the acquisition.
In June 2020, Descartes Systems Group acquired Cracking Logistics Limited dba “Kontainers”, a provider of client-facing digital freight execution platforms. The acquisition expands Descartes footprint in United Kingdom.
Descartes connects the people and technology to put your organization in motion. Descartes extends the command of logistics operations, helping the world's largest and most connected logistics community to quickly reduce costs, improve service and comply with customs and transportation regulations.
In February 2020, Descartes Systems acquired Peoplevox, a cloud-based ecommerce warehouse management solutions (“eWMS”). Peoplevox serves direct-to-consumer ecommerce customers around the world. Peoplevox’s web-based eWMS and ecommerce fulfilment solutions help customers seamlessly connect to webshop front ends, translate order information into a mobile-driven pick and pack process within the warehouse and then feed parcel delivery systems for shipment execution.
In June 2019, Descartes Systems Group acquired STEPcom, a Business-to-Business supply chain integration network based in Switzerland. STEPcom has connected trading partners to its B2B network for more than 15 years, helping supply chain participants connect, collaborate and seamlessly exchange electronic data. A community of more than 600 customers leverages the STEPcom suite of solutions to automate supply chain processes and streamline a wide array of complex, mission-critical documents found in typical procure-to-pay and order-to-cash processes.
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
Ownership: - TSE: DSG
Number of Employees: 1500
Functional Markets: eCommerce, ERP Financial, SCM, TRM,
Key Verticals: Aerospace and Defense, Automotive, Consumer Packaged Goods, Distribution, Healthcare, Manufacturing, Retail, Transportation,
Descartes Systems Group Key Enterprise and Cloud Applications
Descartes Systems Group Transportation Management Suite
Descartes Systems Group Revenues, $M:
| Type/Year | 2020 | 2021 | 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:
| Type | License | Prof. Services | Hardware | Support & Maintenance | SaaS | PaaS | IaaS | Other (Non Enterprise Application Revenues) | Total |
|---|---|---|---|---|---|---|---|---|---|
| % of Total Revenues | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | 100% |
| Revenues, $M | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe |
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 | 2021 Total Revenues, $M | 2021 Enterprise Applications Revenues, $M | 2021 Cloud Applications Revenues, $M |
|---|---|---|---|---|
| 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
| Region | Direct Sales | Indirect Sales | Total |
|---|---|---|---|
| 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: 10000
No. of Descartes Systems Group Enterprise Applications Customers: 10000
No. of Descartes Systems Group Cloud Customers: x
No. of Descartes Systems Group Cloud Subscribers: x
Descartes customers include an estimated 1,600 ground carriers and more than 90 airlines, 30 ocean carriers, 900 freight forwarders and third-party providers of logistics services, and hundreds of manufacturers, retailers, distributors, private fleet owners and regulatory agencies. 3M; A.Duie Pyle; AGA Linde; Air Canada; Air France; American Airlines; Amerigas; Argix Direct; Arla Foods; Ashley Furniture; AutoZone; Bad Boy Furniture; British Airways; British American Tobacco; Cargolux; Canon; Capital Beverage; Chambers Transport; Coca Cola Korea Bottling Company; Continental Airlines; Crate and Barrel; Crowley Maritime Corporation; CVS/Pharmacy; Dayton Superior; Delta; DHL; Edward Don & Company; EGL; Empire Distributing; Emirates; Ferrellgas; Foster's Group; Freedman Distributors; Fox River Foods; Frito Lay; Hanjin Shipping; Iberia; IDS Group; Ideal Supply; John Lewis Partnership; KLM; Kraft; Kuehne + Nagel; Lufthansa; Mallory Alexander; Old Dominion Freight Lines; Panalpina; PGT Industries; Polar Air Cargo; Samsung Electronics Logitech; Schenker; Schwan's; Swire Beverages; Swiss World; Tampa; The Home Depot; TNT Freight Management; Tomra; United Parcel Service; US Department of Census; UTi; Wolseley; Yang Ming; Zee Medical.
Descartes Systems Group Market Opportunities, M&A and Geo Expansions
Descartes Logistics Technology Platform unites a growing global community of logistics-focused parties, allowing them to transact business while leveraging a broad array of applications designed to help logistics-intensive businesses thrive. Descartes Logistics Technology Platform is the simple, elegant synthesis of a network, applications, content and a community.
The Logistics Technology Platform fuses its GLN, an extensive logistics network covering multiple transportation modes, with a broad array of modular, interoperable web and wireless logistics management solutions.
Designed to help accelerate time-to-value and increase productivity and performance for businesses of all sizes, the Logistics Technology Platform leverages the GLN's multimodal logistics community to enable companies to quickly and cost-effectively connect and collaborate.
Descartes Systems Group Risks and Challenges
Descartes has relied heavily on acquisitions over the past few years to boost its presence in EMEA and other regions.
The challenge is to present a unified customer experience as it continues to enhance its enlarge product portfolio with increased emphasis on seamless integration for its biggest logistics service provider customers that are also aiming to standardize their supply chain systems.
Descartes Systems Group Ecosystem, Partners, Resellers and SI
In July 2021, Descartes Systems Group announced that its Descartes MacroPoint solution is now available on SAP Store, the online marketplace for SAP and partner offerings. Descartes MacroPoint integrates with SAP Transportation Management leveraging SAP Integration Suite and/or SAP Extension Suite and delivers real-time, multimodal supply chain visibility to manufacturers, retailers, distributors and logistics services providers. Using Descartes MacroPoint, businesses that use SAP solutions can improve customer service, increase distribution efficiency, better collaborate with customers, suppliers and carriers, and minimize the impact of disruptions and late delivery penalties.
SAP Store, delivers a simplified and connected digital customer experience for finding, trying, buying and renewing more than 1,800 solutions from SAP and its partners. There, customers can find the SAP solutions and SAP-validated solutions they need to grow their business. And for each purchase made through SAP Store, SAP will plant a tree.
Descartes sales staff is regionally based and trained to sell across their solutions to specific customer markets. In North America and Europe, they promote its products primarily through direct sales efforts aimed at existing and potential users of its products.
In the Asia Pacific, Indian subcontinent, South America and African regions, they focus on making channel partners successful. Channel partners for their other international operations include distributors, alliance partners and value-added resellers.
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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