Descartes Systems Group Explained

The Descartes Systems Group Inc.
Logo Alt:Descartes logo
Type:Public
Predecessors:-->
Successors:-->
Founders:-->
Hq Location:Waterloo, Ontario, Canada
Area Served:Worldwide
Products:Software-as-a-service applications for logistics and supply chain management
Services:Descartes Global Logistics Network
Revenue: US$ >500 million (2023)[1]
Net Income: US$ 37.0 million (2020)
Assets: US$ 942.6 million (2020)
Equity: US$ 821.7 million (2020)
Owners:-->
Num Employees:2000+

The Descartes Systems Group Inc. (commonly referred to as Descartes) is a Canadian multinational technology company specializing in logistics software, supply chain management software, and cloud-based services for logistics businesses.

Descartes is perhaps best known for its abrupt and unexpected turnaround in the mid-2000s after coming close to bankruptcy in the wake of the dot-com bubble collapse. It is also known as one of the earliest logistics technology companies to adopt an on-demand business model and sell its software as a service (SaaS) via the Internet. In addition, the company operates the Global Logistics Network, an extensive electronic messaging system used by freight companies, manufacturers, distributors, retailers, customs brokers, government agencies, and other interested parties to exchange logistics and customs information.

Headquartered in Waterloo, Ontario, Canada, Descartes is a publicly traded company with shares listed on the NASDAQ Stock Market (NASDAQ: DSGX) and Toronto Stock Exchange (TSX: DSG). It has offices in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region.

History

Descartes was founded in 1981.[2]

In 1998, the company made an initial public offering on the Toronto Stock Exchange,[3] where its common shares traded under the stock symbol DSG.[4] Descartes was first listed on the NASDAQ Stock Market in 1999, with common shares trading under the symbol DSGX.[5] Descartes’ share price peaked during the dot-com bubble and then fell precipitously in the subsequent crash.[6]

In 2001, Descartes switched its business model from selling full-featured enterprise software licenses to providing on-demand software on a subscription basis, becoming one of the first SaaS providers in the logistics sector.[7] [8] After years of losses, Descartes came close to bankruptcy in 2004,[9] prompting it to aggressively restructure.[10] [11] The company cut 35% of its workforce[12] and initiated a sweeping transformation of its corporate culture under CEO Arthur Mesher, who was appointed in 2005.[13] [14]

The company returned to profitability in 2005,[15] with one analyst describing this as "one of the most dramatic turnarounds in Canadian corporate history."

In December 2013, Descartes was added to the S&P/TSX Composite Index, an index of the stock (equity) prices of the largest companies on the Toronto Stock Exchange.[16]

By January, 2015, Descartes had posted 41 straight profitable quarters[17] and was supplying logistics software and services to more than 10,000 logistics-centric businesses,[18] such as ground transportation companies, airlines, ocean carriers, freight forwarders, manufacturers, distributors, and retailers.[19] [20] [21] [22] [23] [24] Its customers included American Airlines, Delta Air Lines, Air Canada, British Airways, Maersk Group, Hapag-Lloyd, Con-way, Kuehne + Nagel, DHL, The Home Depot, Sears Brands, Hallmark Cards, Hasbro, Volvo, Ferrellgas, Del Monte, and The Coca-Cola Company.

In 2018, Gartner ranked Descartes 6th in its list of the Top 20 Supply Chain Management Software Suppliers, based on revenue of $221 million.[25]

In July 2020, Descartes Systems Group confirmed that dnata is expanding Descartes Core Bluetooth Low Energy (BLE) readers through its regional freight operations to enable foreign mail, shipment, and freight monitoring. Groupe Descartes Services T.DSG stock is up $0.68 to $71.47.[26]

Acquisitions

Acquisitions have played a key role in Descartes’ growth.[27] [28] [29] By acquiring niche technology companies, Descartes has expanded its line of logistics software and services, enlarged its customer base, and extended its business geographically.[30] [31] [32]

Acquisitions going back to 2006 are listed below.

Year AcquiredCompanySpecialtyCountryReferences
2006ViaSafeCross-border and regulatory compliance softwareCanada[33]
2006Flagship Customs ServicesCustoms filing softwareUS[34]
2006Cube RouteOn-demand logistics management softwareCanada[35]
2007Ocean Tariff Bureau and Blue Pacific ServicesTariff filing & contract publishing and surety bonds for ocean intermediariesUS
2007Global Freight ExchangeElectronic air cargo booking systemUK[36]
2007RouteView TechnologiesDelivery management softwareUS[37]
2008Pacific Coast Tariff BureauRegulatory compliance servicesUS[38]
2008Mobitrac Fleet Management BusinessFleet routing and scheduling SaaSUS[39]
2008DexxEuropean customs filing and logistics messagingBelgium[40]
2009OceanwideSaaS customs and regulatory complianceCanada/US[41]
2009Scancode SystemsParcel and LTL shipping softwareCanada[42]
2010PorthusGlobal trade management softwareBelgium[43]
2010ImanetOn-demand Canadian customs filing softwareCanada[44]
2010Routing InternationalRoute planning softwareBelgium[45]
2011TelargoFleet telematics data gathering software and servicesUS/Slovenia/Hong Kong[46]
2011IntercommITElectronic exchange of trade dataNetherlands[47]
2012GeoMicroVehicle routing and navigation technologyUS[48]
2012InfodisTransportation management SaaSNetherlands[49]
2012Integrated Export SystemsLogistics SaaSUS/Hong Kong[50]
2012ExentraEU driver compliance SaaSUK[51]
2013KSD Software NorwayElectronic customs filing software for the EUNorway[52]
2013Impatex Freight SoftwareElectronic customs filing and freight forwarding softwareUK[53]
2013CompudataSupply chain integration and e-invoicing softwareSwitzerland[54]
2014Computer ManagementSecurity information filing services and air cargo management softwareUS[55]
2014Customs InfoTrade data and research toolsUS[56]
2014AirclicMobile logistics automation softwareUS[57]
2014PentantCustoms connectivity and import/export softwareUK[58] [59]
2014e-customsElectronic security and customs filing softwareUK
2015MK Data ServicesDenied party screening data and softwareUS[60]
2015BearWareMobile carton tracking technology for retailersUS[61]
2015Oz DevelopmentLogistics automation software for SMEsUS[62]
2016Pixi Softwaree-Commerce order fulfillment and warehouse management softwareGermany[63]
2016AppterraBusiness-to-business supply chain SaaSUS
20164SolutionsCloud-based supply chain integrationAustralia[64]
2016DatamyneCloud-based trade dataUS[65]
2017ShipRushe-Commerce parcel shipping softwareUS[66]
2017PCSTracShipment tracking software for retailersUS[67]
2017MacroPointFreight tracking technologyUS[68]
2018Aljex SoftwareCloud-based transportation managementUS[69]
2018Velocity MailShipment tracking service for airlinesUS[70]
2018PinPoint GPS SolutionsFleet tracking/mobile workforce technologyCanada[71]
2019Visual ComplianceRestricted and denied party screeningUS[72]
2019Core Transport TechnologiesAccurate tracking of international mail, parcel, and cargo shipmentsNew Zealand[73]
2019STEPcomBusiness-to-Business supply chain integration networkSwitzerland[74]
2019BestTransportTransportation management system providerUS[75]
2020PeoplevoxCloud-Based eCommerce WMSUK[76]
2020KontainersLogistics SaaSUK[77]
2020ShipTrackCloud-Based Logistics platform for Final-Mile DeliveriesCanada[78]
2021QuestaWebA leading provider of foreign trade zone (FTZ) and customs compliance solutionsUS[79]
2021Portrix Logistic SoftwareStreamlines and automates complex global shipping rate management processesGermany[80]
2021GreenMileCloud-based mobile route execution solutions for food, beverage, and broader distribution verticalsUS[81]
2022NetCHBCloud-based platform to streamline and automate customs filing processes in the USUS[82]
2023GroundCloudCloud-based provider of final-mile carrier solutions and road safety compliance toolsUS[83]

Global Logistics Network

Descartes’ cloud-based logistics messaging system, the Global Logistics Network (GLN), connects more than 13,000 customers in over 160 countries, making it one of the world’s largest logistics networks. Each year, the GLN carries more than 4.5 billion messages and manages more than 30 million shipping routes.[84]

Companies use the network to oversee shipping orders, file customs paperwork, comply with security regulations, share information across international supply chains, and automate logistics processes.[85] [86] In 2015, Descartes signed a deal with German business software giant SAP SE that allows users of SAP’s transportation management software to access the GLN.

Conference

Descartes holds an annual logistics technology conference for its users and partners. The eleventh Descartes "Evolution" conference was held in 2016.[87]

Notes and References

  1. Web site: Descartes Systems Group. Descartes . May 22, 2020.
  2. Web site: Descartes Systems Group Inc. - Profile. Business Insider. March 9, 2017. https://web.archive.org/web/20170312041238/http://markets.businessinsider.com/stock/descartes_systems_group/company-profile. March 12, 2017. dead.
  3. News: Descartes executives to depart. April 22, 2009. The Globe and Mail. July 29, 2016.
  4. Web site: Descartes Systems Group Inc. (The). TMX Money. August 21, 2016.
  5. Web site: Descartes Systems Group Inc. (The) Common Stock Quote & Summary Data. Nasdaq. August 21, 2016.
  6. News: CEO's bold prescription for profit turnaround. Pitts. Gordon. July 19, 2009. The Globe and Mail. July 26, 2016.
  7. Web site: Descartes' expansion strategy. Field. Alan. September 2, 2007. The Journal of Commerce. July 28, 2016.
  8. Web site: Still standing. Saccomano. Ann. April 6, 2003. The Journal of Commerce. October 20, 2016.
  9. Web site: Descartes Systems Group: Logistics software and services provider helps customers deliver. Field. Alan. March 29, 2010. Canadian Sailings. Great White Publications. July 25, 2016.
  10. Web site: Descartes' System Crash. May 23, 2004. Traffic World/The Journal of Commerce. July 28, 2016.
  11. News: Descartes profit exceeds expectations. December 2, 2005. The Globe and Mail. July 29, 2016.
  12. News: Descartes improves, but year-end results weak. Paddon. David. March 4, 2005. The Globe and Mail. July 29, 2016.
  13. News: Descartes attributes success to 'humble servant culture'. February 4, 2013. Financial Post. July 25, 2016.
  14. Web site: Art Mesher, one of Canada's most dynamic CEOs, leaves Descartes. Waddell. Nick. November 27, 2013. Cantech Letter. Cantech Communications. July 26, 2016.
  15. News: Descartes posts record profit after major restructuring. May 26, 2005. The Globe and Mail. July 29, 2016.
  16. News: Descartes to join S&P/TSX composite index. December 16, 2013. Waterloo Region Record. July 27, 2016.
  17. News: Descartes posts 41st consecutive profitable quarter. March 5, 2015. Waterloo Region Record. July 27, 2016.
  18. Web site: Canada Research: The Descartes Systems Group Inc.. Li. Steven. Lo. Jonathan. March 24, 2014. Raymond James Ltd.. July 20, 2016. https://web.archive.org/web/20140804010452/http://raymondjames.ca/en_ca/equity_capital_markets/equity_research/sample_research/docs/Descartes%2020140324.pdf. August 4, 2014. dead.
  19. News: Descartes Systems thrives in 'perfect storm'. March 7, 2013. Waterloo Region Record. July 27, 2016.
  20. News: Deliver for sustainability. Deveau. Denise. May 9, 2011. Financial Post. July 27, 2016.
  21. Web site: Highlights from Descartes Evolution 2016. Grackin. Ann. April 21, 2016. ChainLink Research. July 28, 2016.
  22. Web site: Big Data's benefits touted for logistics sector. Field. Alan. June 13, 2014. The Journal of Commerce. July 28, 2016.
  23. Web site: New Delivery Methods Lower TMS Costs, Barriers. Biederman. David. July 24, 2013. The Journal of Commerce. July 28, 2016.
  24. Web site: Trucking Through the Cloud. Biederman. David. April 4, 2011. The Journal of Commerce. July 28, 2016.
  25. Web site: 2018 Top 20 supply chain software suppliers. Bond. Josh. December 10, 2018. Modern Materials Handling. December 13, 2018.
  26. Web site: 27 July 2020. Descartes Systems Group. 1 August 2020. menafn.
  27. News: Descartes plans big share offering. Pender. Terry. June 27, 2014. Waterloo Region Record. July 27, 2016.
  28. News: Descartes keeping eye out for acquisition opportunities. June 2, 2011. Waterloo Region Record. July 27, 2016.
  29. News: Descartes Systems Group Inc upgraded as big acquisition may be coming. Ratner. Jonathan. October 19, 2016. Financial Post. October 20, 2016.
  30. News: Software Firm Descartes Raising Funds for More Acquisitions. Chao. Loretta. May 26, 2016. The Wall Street Journal. July 28, 2016.
  31. News: Today's Top Supply Chain and Logistics News From WSJ. Baskin. Brian. May 27, 2016. The Wall Street Journal. July 28, 2016.
  32. Web site: With Appterra, Descartes grows cloud-based logistics. Cassidy. William. October 13, 2016. The Journal of Commerce. October 20, 2016.
  33. News: Descartes expands services with acquisition of ViaSafe. April 11, 2006. The Globe and Mail. July 20, 2016.
  34. Web site: Descartes Acquires Flagship. July 6, 2006. The Journal of Commerce. August 8, 2016.
  35. Web site: Descartes Acquires Assets of Cube Route. Witt. Clyde. November 1, 2006. Material Handling & Logistics. October 20, 2016.
  36. Web site: Descartes acquires GF-X. Hoffman. William. August 16, 2007. Traffic World/The Journal of Commerce. October 20, 2016.
  37. Web site: Descartes Acquires RouteView Technologies. January 1, 2008. Fleet Financials. August 8, 2016.
  38. Web site: Descartes snaps up Pacific Coast Tariff Bureau for $2.1-million. Smith. Briony. January 9, 2008. IT World Canada. August 8, 2016.
  39. Web site: Descartes acquires Mobitrac fleet management business. January 11, 2008. Commercial Carrier Journal. August 8, 2016.
  40. Web site: Descartes buys Dexx. October 1, 2008. The Journal of Commerce. July 29, 2016.
  41. Web site: Descartes Acquires Oceanwide. February 5, 2009. The Journal of Commerce. July 29, 2016.
  42. Web site: Descartes Acquisitions Continue. March 11, 2009. Material Handling & Logistics. July 20, 2016.
  43. Web site: Descartes Systems (DSGX) Subsidiary Offers €12.50/Share for Zemblaz NV. February 22, 2010. Street Insider. August 8, 2016.
  44. Web site: Descartes Acquires Imanet. Gallagher. Thomas. April 21, 2010. The Journal of Commerce. August 8, 2016.
  45. Web site: Descartes acquires Routing International. Berman. Jeff. June 18, 2010. Logistics Management. October 20, 2016.
  46. News: Descartes acquires telematics data company. June 13, 2011. Waterloo Region Record. July 27, 2016.
  47. News: Descartes acquires Dutch firm for $13.8 million US. November 3, 2011. Waterloo Region Record. July 29, 2016.
  48. News: Descartes Acquires California-based GeoMicro. January 23, 2012. The Globe and Mail. August 8, 2016.
  49. Web site: Descartes Acquires Dutch Transportation Software Provider. Leach. Peter. June 4, 2012. The Journal of Commerce. August 8, 2016.
  50. Web site: Descartes to Acquire IES. June 13, 2012. The Journal of Commerce. July 29, 2016.
  51. Web site: Descartes acquires Exentra for $17 million. November 14, 2012. DC Velocity. August 8, 2016.
  52. News: Descartes buys customs filing specialist for $33 million US. May 2, 2013. Waterloo Region Record. July 27, 2016.
  53. Web site: Descartes acquires Impatex. December 28, 2013. Air Cargo News. October 20, 2016.
  54. Web site: Descartes announces two more acquisitions. December 27, 2013. Fleet Owner. October 20, 2016.
  55. Web site: Descartes Acquires US-Based Air Freight Solutions Firm. Lavigne. Grace. April 1, 2014. The Journal of Commerce. October 20, 2016.
  56. Web site: Descartes Buys Trade Data Firm Customs Info. June 2, 2014. The Journal of Commerce. August 8, 2016.
  57. News: Canadian firm buys AirClic for $30M. DiStefano. Joseph. November 24, 2014. The Philadelphia Inquirer. October 20, 2016.
  58. Web site: Descartes expands European reach with two acquisitions. December 8, 2014. The Journal of Commerce. October 20, 2016.
  59. Web site: Descartes acquires two UK-based customs software providers. Johnson. Eric. December 8, 2014. American Shipper. August 8, 2016.
  60. News: Descartes acquires company that keeps track of who not to do business with. Simone. Rose. July 23, 2015. Waterloo Region Record. July 20, 2016.
  61. Web site: Acquisition aimed at giving Descartes' shippers more supply chain visibility. July 23, 2015. The Journal of Commerce. October 20, 2016.
  62. Web site: Descartes acquisition aimed at serving smaller customers. November 25, 2015. The Journal of Commerce. October 20, 2016.
  63. News: Descartes buys German firm for US$10.4 million. April 29, 2016. Waterloo Region Record. August 8, 2016.
  64. News: Descartes Systems Group purchasing Australian company. November 11, 2016. CTV News. January 15, 2018.
  65. Web site: Descartes acquires logistics trade data provider for $52.7 million. December 28, 2016. DC Velocity. January 15, 2018.
  66. News: Seattle software firm ShipRush bought by Descartes for $14M. Lerman. Rachel. May 24, 2017. The Seattle Times. January 15, 2018.
  67. News: Descartes Systems acquires U.S. firm for $11.25 million US. June 2, 2017. The Waterloo Region Record. January 15, 2018.
  68. News: Descartes Systems buys Ohio-based MacroPoint truck-tracking business. August 15, 2017. CTV News. January 15, 2018.
  69. Web site: Descartes acquires TMS provider Aljex for $32.4 million. February 2, 2018. DC Velocity. December 13, 2018.
  70. News: Descartes Systems Group buys Velocity Mail for US$25 million. June 25, 2018. Waterloo Region Record. December 13, 2018.
  71. Web site: Descartes buys PinPoint in move to capture more real-time vehicle data as Canada plans ELD mandate. August 22, 2018. DC Velocity. December 13, 2018.
  72. Web site: Descartes pays $250 million for denied party screening software vendor. January 28, 2019. DC Velocity. January 28, 2019.
  73. Web site: Descartes Systems Group acquires Core Transport Technologies. May 13, 2019. DC Velocity. May 13, 2019.
  74. Web site: Descartes Acquires STEPcom. July 9, 2019. DC Velocity. July 9, 2019.
  75. Web site: Descartes Acquires BestTransport. August 21, 2019. Nasdaq.com. August 21, 2019.
  76. Descartes Acquires Peoplevox. February 24, 2020. globenewswire.com. February 24, 2020.
  77. Descartes Acquires Kontainers. June 11, 2020. globenewswire.com. June 11, 2020.
  78. Web site: Descartes Systems acquires ShipTrack for $19M. November 6, 2020. freightwaves.com. November 8, 2020.
  79. Web site: Descartes Acquires QuestaWeb for $36M. March 1, 2021. finance.yahoo.com. March 1, 2021.
  80. Descartes Acquires Portrix Logistics Software. May 10, 2021. globenewswire.com. May 10, 2021.
  81. Descartes Acquires GreenMile. July 8, 2021. globenewswire.com. July 8, 2021.
  82. Descartes Acquires NetCHB. February 10, 2022. globenewswire.com. February 11, 2022.
  83. Descartes Acquires GroundCloud. February 14, 2023. globenewswire.com. February 14, 2023.
  84. Web site: Descartes' acquisition of Apterra gets thumbs up at Cantor Fitzgerald. Waddell. Nick. October 13, 2016. Cantech Letter. Cantech Communications. October 20, 2016.
  85. News: SAP Links With Descartes for Transportation Management Service. Chao. Loretta. July 29, 2015. The Wall Street Journal. July 29, 2015.
  86. Web site: Canadian eManifest deadline looms for US truckers. Cassidy. William. January 9, 2016. The Journal of Commerce. July 28, 2016.
  87. Web site: Descartes Showcases Logistics Technology Platform Innovations at Global User and Partner Conference. April 7, 2016. Warehousing & Logistics International. Quad Publications. July 28, 2016.

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