Descartes Systems Group
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Company type | Public |
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Industry | |
Founded | May 22, 1981 |
Headquarters | Waterloo, Ontario, Canada |
Area served | Worldwide |
Key people | |
Products | Software-as-a-service applications for logistics and supply chain management |
Services | Descartes Global Logistics Network |
Revenue | ![]() |
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Total assets | ![]() |
Total equity | ![]() |
Number of employees | 2000+ |
Website | descartes |
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
[edit]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,[3] 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.[3][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][9] After years of losses, Descartes came close to bankruptcy in 2004,[6][7] 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.[6][13][14]
The company returned to profitability in 2005,[15] with one analyst[who?] describing this as "one of the most dramatic turnarounds in Canadian corporate history."[14]
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.[18]
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
[edit]Acquisitions have played a key role in Descartes’ growth.[27][8][18][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.[7][18][30][31][32]
Acquisitions going back to 2006 are listed below.
Year Acquired | Company | Specialty | Country | References |
---|---|---|---|---|
2006 | ViaSafe | Cross-border and regulatory compliance software | Canada | [33] |
2006 | Flagship Customs Services | Customs filing software | US | [34] |
2006 | Cube Route | On-demand logistics management software | Canada | [35] |
2007 | Ocean Tariff Bureau and Blue Pacific Services | Tariff filing & contract publishing and surety bonds for ocean intermediaries | US | [8][18] |
2007 | Global Freight Exchange | Electronic air cargo booking system | UK | [36] |
2007 | RouteView Technologies | Delivery management software | US | [37] |
2008 | Pacific Coast Tariff Bureau | Regulatory compliance services | US | [38] |
2008 | Mobitrac Fleet Management Business | Fleet routing and scheduling SaaS | US | [39] |
2008 | Dexx | European customs filing and logistics messaging | Belgium | [40] |
2009 | Oceanwide | SaaS customs and regulatory compliance | Canada/US | [41] |
2009 | Scancode Systems | Parcel and LTL shipping software | Canada | [42] |
2010 | Porthus | Global trade management software | Belgium | [18][43] |
2010 | Imanet | On-demand Canadian customs filing software | Canada | [44] |
2010 | Routing International | Route planning software | Belgium | [45] |
2011 | Telargo | Fleet telematics data gathering software and services | US/Slovenia/Hong Kong | [46] |
2011 | IntercommIT | Electronic exchange of trade data | Netherlands | [47] |
2012 | GeoMicro | Vehicle routing and navigation technology | US | [48] |
2012 | Infodis | Transportation management SaaS | Netherlands | [49] |
2012 | Integrated Export Systems | Logistics SaaS | US/Hong Kong | [50] |
2012 | Exentra | EU driver compliance SaaS | UK | [51] |
2013 | KSD Software Norway | Electronic customs filing software for the EU | Norway | [52] |
2013 | Impatex Freight Software | Electronic customs filing and freight forwarding software | UK | [53] |
2013 | Compudata | Supply chain integration and e-invoicing software | Switzerland | [54] |
2014 | Computer Management | Security information filing services and air cargo management software | US | [55] |
2014 | Customs Info | Trade data and research tools | US | [56] |
2014 | Airclic | Mobile logistics automation software | US | [57] |
2014 | Pentant | Customs connectivity and import/export software | UK | [58][59] |
2014 | e-customs | Electronic security and customs filing software | UK | [58][59] |
2015 | MK Data Services | Denied party screening data and software | US | [60] |
2015 | BearWare | Mobile carton tracking technology for retailers | US | [60][61] |
2015 | Oz Development | Logistics automation software for SMEs | US | [62] |
2016 | Pixi Software | e-Commerce order fulfillment and warehouse management software | Germany | [63] |
2016 | Appterra | Business-to-business supply chain SaaS | US | [32] |
2016 | 4Solutions | Cloud-based supply chain integration | Australia | [64] |
2016 | Datamyne | Cloud-based trade data | US | [65] |
2017 | ShipRush | e-Commerce parcel shipping software | US | [66] |
2017 | PCSTrac | Shipment tracking software for retailers | US | [67] |
2017 | MacroPoint | Freight tracking technology | US | [68] |
2018 | Aljex Software | Cloud-based transportation management | US | [69] |
2018 | Velocity Mail | Shipment tracking service for airlines | US | [70] |
2018 | PinPoint GPS Solutions | Fleet tracking/mobile workforce technology | Canada | [71] |
2019 | Visual Compliance | Restricted and denied party screening | US | [72] |
2019 | Core Transport Technologies | Accurate tracking of international mail, parcel, and cargo shipments | New Zealand | [73] |
2019 | STEPcom | Business-to-Business supply chain integration network | Switzerland | [74] |
2019 | BestTransport | Transportation management system provider | US | [75] |
2020 | Peoplevox | Cloud-Based eCommerce WMS | UK | [76] |
2020 | Kontainers | Logistics SaaS | UK | [77] |
2020 | ShipTrack | Cloud-Based Logistics platform for Final-Mile Deliveries | Canada | [78] |
2021 | QuestaWeb | A leading provider of foreign trade zone (FTZ) and customs compliance solutions | US | [79] |
2021 | Portrix Logistic Software | Streamlines and automates complex global shipping rate management processes | Germany | [80] |
2021 | GreenMile | Cloud-based mobile route execution solutions for food, beverage, and broader distribution verticals | US | [81] |
2022 | NetCHB | Cloud-based platform to streamline and automate customs filing processes in the US | US | [82] |
2023 | GroundCloud | Cloud-based provider of final-mile carrier solutions and road safety compliance tools | US | [83] |
Global Logistics Network
[edit]Descartes’ cloud-based logistics messaging system, the Global Logistics Network (GLN), connects more than 13,000 customers in over 160 countries,[23][29] making it one of the world’s largest logistics networks.[18] 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.[7][18][24][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.[85]
Conference
[edit]Descartes holds an annual logistics technology conference for its users and partners. The eleventh Descartes "Evolution" conference was held in 2016.[87]
References
[edit]- ^ a b c d "Descartes Systems Group" (PDF). Descartes. Retrieved May 22, 2020.
- ^ "Descartes Systems Group Inc. - Profile". Business Insider. Archived from the original on March 12, 2017. Retrieved March 9, 2017.
- ^ a b c "Descartes executives to depart". The Globe and Mail. April 22, 2009. Retrieved July 29, 2016.
- ^ "Descartes Systems Group Inc. (The)". TMX Money. Retrieved August 21, 2016.
- ^ "Descartes Systems Group Inc. (The) Common Stock Quote & Summary Data". Nasdaq. Retrieved August 21, 2016.
- ^ a b c Pitts, Gordon (July 19, 2009). "CEO's bold prescription for profit turnaround". The Globe and Mail. Retrieved July 26, 2016.
- ^ a b c d Field, Alan (March 29, 2010). "Descartes Systems Group: Logistics software and services provider helps customers deliver". Canadian Sailings. Great White Publications. Retrieved July 25, 2016.
- ^ a b c Field, Alan (September 2, 2007). "Descartes' expansion strategy". The Journal of Commerce. Retrieved July 28, 2016.
- ^ Saccomano, Ann (April 6, 2003). "Still standing". The Journal of Commerce. Retrieved October 20, 2016.
- ^ "Descartes' System Crash". Traffic World/The Journal of Commerce. May 23, 2004. Retrieved July 28, 2016.
- ^ "Descartes profit exceeds expectations". The Globe and Mail. December 2, 2005. Retrieved July 29, 2016.
- ^ Paddon, David (March 4, 2005). "Descartes improves, but year-end results weak". The Globe and Mail. Retrieved July 29, 2016.
- ^ "Descartes attributes success to 'humble servant culture'". Financial Post. February 4, 2013. Retrieved July 25, 2016.
- ^ a b Waddell, Nick (November 27, 2013). "Art Mesher, one of Canada's most dynamic CEOs, leaves Descartes". Cantech Letter. Cantech Communications. Retrieved July 26, 2016.
- ^ "Descartes posts record profit after major restructuring". The Globe and Mail. May 26, 2005. Retrieved July 29, 2016.
- ^ "Descartes to join S&P/TSX composite index". Waterloo Region Record. December 16, 2013. Retrieved July 27, 2016.
- ^ "Descartes posts 41st consecutive profitable quarter". Waterloo Region Record. March 5, 2015. Retrieved July 27, 2016.
- ^ a b c d e f g h Li, Steven; Lo, Jonathan (March 24, 2014). "Canada Research: The Descartes Systems Group Inc" (PDF). Raymond James Ltd. Archived from the original (PDF) on August 4, 2014. Retrieved July 20, 2016.
- ^ "Descartes Systems thrives in 'perfect storm'". Waterloo Region Record. March 7, 2013. Retrieved July 27, 2016.
- ^ Deveau, Denise (May 9, 2011). "Deliver for sustainability". Financial Post. Retrieved July 27, 2016.
- ^ Grackin, Ann (April 21, 2016). "Highlights from Descartes Evolution 2016". ChainLink Research. Retrieved July 28, 2016.
- ^ Field, Alan (June 13, 2014). "Big Data's benefits touted for logistics sector". The Journal of Commerce. Retrieved July 28, 2016.
- ^ a b Biederman, David (July 24, 2013). "New Delivery Methods Lower TMS Costs, Barriers". The Journal of Commerce. Retrieved July 28, 2016.
- ^ a b Biederman, David (April 4, 2011). "Trucking Through the Cloud". The Journal of Commerce. Retrieved July 28, 2016.
- ^ Bond, Josh (December 10, 2018). "2018 Top 20 supply chain software suppliers". Modern Materials Handling. Retrieved December 13, 2018.
- ^ "Descartes Systems Group". menafn. 27 July 2020. Retrieved 1 August 2020.
- ^ Pender, Terry (June 27, 2014). "Descartes plans big share offering". Waterloo Region Record. Retrieved July 27, 2016.
- ^ "Descartes keeping eye out for acquisition opportunities". Waterloo Region Record. June 2, 2011. Retrieved July 27, 2016.
- ^ a b Ratner, Jonathan (October 19, 2016). "Descartes Systems Group Inc upgraded as big acquisition may be coming". Financial Post. Retrieved October 20, 2016.
- ^ Chao, Loretta (May 26, 2016). "Software Firm Descartes Raising Funds for More Acquisitions". The Wall Street Journal. Retrieved July 28, 2016.
- ^ Baskin, Brian (May 27, 2016). "Today's Top Supply Chain and Logistics News From WSJ". The Wall Street Journal. Retrieved July 28, 2016.
- ^ a b Cassidy, William (October 13, 2016). "With Appterra, Descartes grows cloud-based logistics". The Journal of Commerce. Retrieved October 20, 2016.
- ^ "Descartes expands services with acquisition of ViaSafe". The Globe and Mail. April 11, 2006. Retrieved July 20, 2016.
- ^ "Descartes Acquires Flagship". The Journal of Commerce. July 6, 2006. Retrieved August 8, 2016.
- ^ Witt, Clyde (November 1, 2006). "Descartes Acquires Assets of Cube Route". Material Handling & Logistics. Retrieved October 20, 2016.
- ^ Hoffman, William (August 16, 2007). "Descartes acquires GF-X". Traffic World/The Journal of Commerce. Retrieved October 20, 2016.
- ^ "Descartes Acquires RouteView Technologies". Fleet Financials. January 1, 2008. Retrieved August 8, 2016.
- ^ Smith, Briony (January 9, 2008). "Descartes snaps up Pacific Coast Tariff Bureau for $2.1-million". IT World Canada. Retrieved August 8, 2016.
- ^ "Descartes acquires Mobitrac fleet management business". Commercial Carrier Journal. January 11, 2008. Retrieved August 8, 2016.
- ^ "Descartes buys Dexx". The Journal of Commerce. October 1, 2008. Retrieved July 29, 2016.
- ^ "Descartes Acquires Oceanwide". The Journal of Commerce. February 5, 2009. Retrieved July 29, 2016.
- ^ "Descartes Acquisitions Continue". Material Handling & Logistics. March 11, 2009. Retrieved July 20, 2016.
- ^ "Descartes Systems (DSGX) Subsidiary Offers €12.50/Share for Zemblaz NV". Street Insider. February 22, 2010. Retrieved August 8, 2016.
- ^ Gallagher, Thomas (April 21, 2010). "Descartes Acquires Imanet". The Journal of Commerce. Retrieved August 8, 2016.
- ^ Berman, Jeff (June 18, 2010). "Descartes acquires Routing International". Logistics Management. Retrieved October 20, 2016.
- ^ "Descartes acquires telematics data company". Waterloo Region Record. June 13, 2011. Retrieved July 27, 2016.
- ^ "Descartes acquires Dutch firm for $13.8 million US". Waterloo Region Record. November 3, 2011. Retrieved July 29, 2016.
- ^ "Descartes Acquires California-based GeoMicro". The Globe and Mail. January 23, 2012. Retrieved August 8, 2016.
- ^ Leach, Peter (June 4, 2012). "Descartes Acquires Dutch Transportation Software Provider". The Journal of Commerce. Retrieved August 8, 2016.
- ^ "Descartes to Acquire IES". The Journal of Commerce. June 13, 2012. Retrieved July 29, 2016.
- ^ "Descartes acquires Exentra for $17 million". DC Velocity. November 14, 2012. Retrieved August 8, 2016.
- ^ "Descartes buys customs filing specialist for $33 million US". Waterloo Region Record. May 2, 2013. Retrieved July 27, 2016.
- ^ "Descartes acquires Impatex". Air Cargo News. December 28, 2013. Retrieved October 20, 2016.
- ^ "Descartes announces two more acquisitions". Fleet Owner. December 27, 2013. Retrieved October 20, 2016.
- ^ Lavigne, Grace (April 1, 2014). "Descartes Acquires US-Based Air Freight Solutions Firm". The Journal of Commerce. Retrieved October 20, 2016.
- ^ "Descartes Buys Trade Data Firm Customs Info". The Journal of Commerce. June 2, 2014. Retrieved August 8, 2016.
- ^ DiStefano, Joseph (November 24, 2014). "Canadian firm buys AirClic for $30M". The Philadelphia Inquirer. Retrieved October 20, 2016.
- ^ a b "Descartes expands European reach with two acquisitions". The Journal of Commerce. December 8, 2014. Retrieved October 20, 2016.
- ^ a b Johnson, Eric (December 8, 2014). "Descartes acquires two UK-based customs software providers". American Shipper. Retrieved August 8, 2016.
- ^ a b Simone, Rose (July 23, 2015). "Descartes acquires company that keeps track of who not to do business with". Waterloo Region Record. Retrieved July 20, 2016.
- ^ "Acquisition aimed at giving Descartes' shippers more supply chain visibility". The Journal of Commerce. July 23, 2015. Retrieved October 20, 2016.
- ^ "Descartes acquisition aimed at serving smaller customers". The Journal of Commerce. November 25, 2015. Retrieved October 20, 2016.
- ^ "Descartes buys German firm for US$10.4 million". Waterloo Region Record. April 29, 2016. Retrieved August 8, 2016.
- ^ "Descartes Systems Group purchasing Australian company". CTV News. November 11, 2016. Retrieved January 15, 2018.
- ^ "Descartes acquires logistics trade data provider for $52.7 million". DC Velocity. December 28, 2016. Retrieved January 15, 2018.
- ^ Lerman, Rachel (May 24, 2017). "Seattle software firm ShipRush bought by Descartes for $14M". The Seattle Times. Retrieved January 15, 2018.
- ^ "Descartes Systems acquires U.S. firm for $11.25 million US". The Waterloo Region Record. June 2, 2017. Retrieved January 15, 2018.
- ^ "Descartes Systems buys Ohio-based MacroPoint truck-tracking business". CTV News. August 15, 2017. Retrieved January 15, 2018.
- ^ "Descartes acquires TMS provider Aljex for $32.4 million". DC Velocity. February 2, 2018. Retrieved December 13, 2018.
- ^ "Descartes Systems Group buys Velocity Mail for US$25 million". Waterloo Region Record. June 25, 2018. Retrieved December 13, 2018.
- ^ "Descartes buys PinPoint in move to capture more real-time vehicle data as Canada plans ELD mandate". DC Velocity. August 22, 2018. Retrieved December 13, 2018.
- ^ "Descartes pays $250 million for denied party screening software vendor". DC Velocity. January 28, 2019. Retrieved January 28, 2019.
- ^ "Descartes Systems Group acquires Core Transport Technologies". DC Velocity. May 13, 2019. Retrieved May 13, 2019.
- ^ "Descartes Acquires STEPcom". DC Velocity. July 9, 2019. Retrieved July 9, 2019.
- ^ "Descartes Acquires BestTransport". Nasdaq.com. August 21, 2019. Retrieved August 21, 2019.
- ^ "Descartes Acquires Peoplevox". globenewswire.com (Press release). February 24, 2020. Retrieved February 24, 2020.
- ^ "Descartes Acquires Kontainers". globenewswire.com (Press release). June 11, 2020. Retrieved June 11, 2020.
- ^ "Descartes Systems acquires ShipTrack for $19M". freightwaves.com. November 6, 2020. Retrieved November 8, 2020.
- ^ "Descartes Acquires QuestaWeb for $36M". finance.yahoo.com. March 1, 2021. Retrieved March 1, 2021.
- ^ "Descartes Acquires Portrix Logistics Software". globenewswire.com (Press release). May 10, 2021. Retrieved May 10, 2021.
- ^ "Descartes Acquires GreenMile". globenewswire.com (Press release). July 8, 2021. Retrieved July 8, 2021.
- ^ "Descartes Acquires NetCHB". globenewswire.com (Press release). February 10, 2022. Retrieved February 11, 2022.
- ^ "Descartes Acquires GroundCloud". globenewswire.com (Press release). February 14, 2023. Retrieved February 14, 2023.
- ^ Waddell, Nick (October 13, 2016). "Descartes' acquisition of Apterra gets thumbs up at Cantor Fitzgerald". Cantech Letter. Cantech Communications. Retrieved October 20, 2016.
- ^ a b Chao, Loretta (July 29, 2015). "SAP Links With Descartes for Transportation Management Service". The Wall Street Journal. Retrieved July 29, 2015.
- ^ Cassidy, William (January 9, 2016). "Canadian eManifest deadline looms for US truckers". The Journal of Commerce. Retrieved July 28, 2016.
- ^ "Descartes Showcases Logistics Technology Platform Innovations at Global User and Partner Conference". Warehousing & Logistics International. Quad Publications. April 7, 2016. Retrieved July 28, 2016.
External links
[edit]- Official website
- Business data for The Descartes Systems Group: