Software company in Canada
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,
[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
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
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
Descartes holds an annual logistics technology conference for its users and partners. The eleventh Descartes "Evolution" conference was held in 2016.
[87]
References
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^
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^
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^
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^
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^
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^
a
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^
a
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^
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^
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^
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^
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^
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^
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^
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^
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^
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^
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^
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^
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^
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^
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^
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^
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^
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^
a
b
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a
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^
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^
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^
"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 .
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^
"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).
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Cantech Letter . Cantech Communications. Retrieved October 20, 2016 .
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a
b Chao, Loretta (July 29, 2015).
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^ Cassidy, William (January 9, 2016).
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^
"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