Descartes Systems Group
{{Short description|Software company in Canada}}
{{Infobox company
| name = The Descartes Systems Group Inc.
| logo = Descartes_logo_288x36.png
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| logo_alt = Descartes logo
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| type = Public
| traded_as = {{Unbulleted list|{{TSX|DSG}}|{{NASDAQ|DSGX}}}}
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| industry = {{Unbulleted list|Computer software|Cloud computing|Supply chain management}}
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| founded = {{start date and age|1981|05|22}}
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| hq_location = Waterloo, Ontario, Canada
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| area_served = Worldwide
| key_people = {{Unbulleted list|Edward J. Ryan (CEO)|J. Scott Pagan (president and COO|Allan Brett (CFO)}}
| products = Software-as-a-service applications for logistics and supply chain management
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| services = Descartes Global Logistics Network
| revenue = {{increase}} US$ >500 million (2023){{cite web|title=Descartes Systems Group|url=https://www.descartes.com/content/media/documents/2020-05/fy2020_q4-AR.pdf |publisher=Descartes |access-date=May 22, 2020}}
| net_income = {{increase}} US$ 37.0 million (2020)
| assets = {{increase}} US$ 942.6 million (2020)
| equity = {{increase}} US$ 821.7 million (2020)
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| num_employees = 2000+
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| website = {{URL|descartes.com}}
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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
In 1998, the company made an initial public offering on the Toronto Stock Exchange,{{Cite news|url=https://www.theglobeandmail.com/report-on-business/descartes-executives-to-depart/article20449197/|title=Descartes executives to depart|date=April 22, 2009|work=The Globe and Mail|access-date=July 29, 2016}} where its common shares traded under the stock symbol DSG.{{Cite web|url=http://web.tmxmoney.com/company.php?qm_symbol=DSG|title=Descartes Systems Group Inc. (The)|website=TMX Money|access-date=August 21, 2016}} Descartes was first listed on the NASDAQ Stock Market in 1999, with common shares trading under the symbol DSGX.{{Cite web|url=http://www.nasdaq.com/symbol/dsgx|title=Descartes Systems Group Inc. (The) Common Stock Quote & Summary Data|website=Nasdaq|access-date=August 21, 2016}} Descartes’ share price peaked during the dot-com bubble and then fell precipitously in the subsequent crash.{{Cite news|url=https://www.theglobeandmail.com/report-on-business/ceos-bold-prescription-for-profit-turnaround/article4284715/|title=CEO's bold prescription for profit turnaround|last=Pitts|first=Gordon|date=July 19, 2009|work=The Globe and Mail|access-date=July 26, 2016}}
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.{{Cite web|url=http://www.joc.com/economy-watch/descartes-expansion-strategy_20070902.html|title=Descartes' expansion strategy|last=Field|first=Alan|date=September 2, 2007|website=The Journal of Commerce|access-date=July 28, 2016}}{{Cite web|url=http://www.joc.com/still-standing_20030406.html|title=Still standing|last=Saccomano|first=Ann|date=April 6, 2003|website=The Journal of Commerce|access-date=October 20, 2016}} After years of losses, Descartes came close to bankruptcy in 2004,{{Cite web|url=http://www.canadiansailings.ca/?p=988|title=Descartes Systems Group: Logistics software and services provider helps customers deliver|last=Field|first=Alan|date=March 29, 2010|website=Canadian Sailings|publisher=Great White Publications|access-date=July 25, 2016}} prompting it to aggressively restructure.{{Cite web|url=http://www.joc.com/economy-watch/descartes-system-crash_20040523.html|title=Descartes' System Crash|date=May 23, 2004|website=Traffic World/The Journal of Commerce|access-date=July 28, 2016}}{{Cite news|url=https://www.theglobeandmail.com/technology/descartes-profit-exceeds-expectations/article1127774/|title=Descartes profit exceeds expectations|date=December 2, 2005|work=The Globe and Mail|access-date=July 29, 2016}} The company cut 35% of its workforce{{Cite news|url=https://www.theglobeandmail.com/technology/descartes-improves-but-year-end-results-weak/article20420041/|title=Descartes improves, but year-end results weak|last=Paddon|first=David|date=March 4, 2005|work=The Globe and Mail|access-date=July 29, 2016}} and initiated a sweeping transformation of its corporate culture under CEO Arthur Mesher, who was appointed in 2005.{{Cite news|url=http://business.financialpost.com/corporate-culture-awards/descartes-attributes-success-to-humble-servant-culture|title=Descartes attributes success to 'humble servant culture'|date=February 4, 2013|work=Financial Post|access-date=July 25, 2016}}{{Cite web|url=http://www.cantechletter.com/2013/11/art-mesher-one-canadas-dynamic-ceos-leaves-descartes1127/|title=Art Mesher, one of Canada's most dynamic CEOs, leaves Descartes|last=Waddell|first=Nick|date=November 27, 2013|website=Cantech Letter|publisher=Cantech Communications|access-date=July 26, 2016}}
The company returned to profitability in 2005,{{Cite news|url=https://www.theglobeandmail.com/report-on-business/descartes-posts-record-profit-after-major-restructuring/article18227832/|title=Descartes posts record profit after major restructuring|date=May 26, 2005|work=The Globe and Mail|access-date=July 29, 2016}} with one analyst{{who|date=February 2020}} 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.{{Cite news|url=http://www.therecord.com/news-story/4273819-descartes-to-join-s-p-tsx-composite-index/|title=Descartes to join S&P/TSX composite index|date=December 16, 2013|work=Waterloo Region Record|access-date=July 27, 2016}}
By January, 2015, Descartes had posted 41 straight profitable quarters{{Cite news|url=http://www.therecord.com/news-story/5461025-descartes-posts-41st-consecutive-profitable-quarter/|title=Descartes posts 41st consecutive profitable quarter|date=March 5, 2015|work=Waterloo Region Record|access-date=July 27, 2016}} and was supplying logistics software and services to more than 10,000 logistics-centric businesses, such as ground transportation companies, airlines, ocean carriers, freight forwarders, manufacturers, distributors, and retailers.{{Cite news|url=http://www.therecord.com/news-story/2625294-descartes-systems-thrives-in-perfect-storm-/|title=Descartes Systems thrives in 'perfect storm'|date=March 7, 2013|work=Waterloo Region Record|access-date=July 27, 2016}}{{Cite news|url=http://www.financialpost.com/entrepreneur/without-borders/Deliver+sustainability/4747782/story.html|title=Deliver for sustainability|last=Deveau|first=Denise|date=May 9, 2011|work=Financial Post|access-date=July 27, 2016}}{{Cite web|url=http://www.clresearch.com/research/detail.cfm?guid=2C5FD36D-3048-79ED-996A-8C1045ADE570|title=Highlights from Descartes Evolution 2016|last=Grackin|first=Ann|date=April 21, 2016|website=ChainLink Research|access-date=July 28, 2016}}{{Cite web|url=http://www.joc.com/international-logistics/logistics-technology/big-data%E2%80%99s-benefits-touted-logistics-sector_20140613.html|title=Big Data's benefits touted for logistics sector|last=Field|first=Alan|date=June 13, 2014|website=The Journal of Commerce|access-date=July 28, 2016}}{{Cite web|url=http://www.joc.com/international-logistics/logistics-technology/new-delivery-methods-lower-tms-costs-barriers_20130724.html|title=New Delivery Methods Lower TMS Costs, Barriers|last=Biederman|first=David|date=July 24, 2013|website=The Journal of Commerce|access-date=July 28, 2016}}{{Cite web|url=http://www.joc.com/trucking-logistics/trucking-through-cloud_20110404.html|title=Trucking Through the Cloud|last=Biederman|first=David|date=April 4, 2011|website=The Journal of Commerce|access-date=July 28, 2016}} 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.{{Cite web|url=https://www.mmh.com/article/2018_top_20_supply_chain_software_suppliers|title=2018 Top 20 supply chain software suppliers|last=Bond|first=Josh|date=December 10, 2018|website=Modern Materials Handling|access-date=December 13, 2018}}
Acquisitions
Acquisitions have played a key role in Descartes’ growth.{{Cite news|url=http://www.therecord.com/news-story/4604857-descartes-plans-big-share-offering/|title=Descartes plans big share offering|last=Pender|first=Terry|date=June 27, 2014|work=Waterloo Region Record|access-date=July 27, 2016}}{{Cite news|url=http://www.therecord.com/news-story/2579447-descartes-keeping-eye-out-for-acquisition-opportunities/|title=Descartes keeping eye out for acquisition opportunities|date=June 2, 2011|work=Waterloo Region Record|access-date=July 27, 2016}}{{Cite news|url=http://business.financialpost.com/investing/trading-desk/descartes-systems-group-inc-upgraded-as-big-acquisition-may-be-coming?__lsa=8500-1c59|title=Descartes Systems Group Inc upgraded as big acquisition may be coming|last=Ratner|first=Jonathan|date=October 19, 2016|work=Financial Post|access-date=October 20, 2016}} By acquiring niche technology companies, Descartes has expanded its line of logistics software and services, enlarged its customer base, and extended its business geographically.{{Cite news|url=https://www.wsj.com/articles/sap-links-with-descartes-for-transportation-management-service-1438199806|title=Software Firm Descartes Raising Funds for More Acquisitions|last=Chao|first=Loretta|date=May 26, 2016|work=The Wall Street Journal|access-date=July 28, 2016}}{{Cite news|url=https://www.wsj.com/articles/todays-top-supply-chain-and-logistics-news-from-wsj-1464345382|title=Today's Top Supply Chain and Logistics News From WSJ|last=Baskin|first=Brian|date=May 27, 2016|work=The Wall Street Journal|access-date=July 28, 2016}}{{Cite web|url=http://www.joc.com/international-logistics/logistics-technology/descartes/appterra-descartes-grows-cloud-based-logistics_20161013.html|title=With Appterra, Descartes grows cloud-based logistics|last=Cassidy|first=William|date=October 13, 2016|website=The Journal of Commerce|access-date=October 20, 2016}}
Acquisitions going back to 2006 are listed below.
| class="wikitable"
!Year Acquired !Company !Specialty !Country !References |
| 2006
|ViaSafe |Cross-border and regulatory compliance software |Canada |
| 2006
|Flagship Customs Services |Customs filing software |US |
| 2006
|Cube Route |On-demand logistics management software |Canada |
| 2007
|Ocean Tariff Bureau and Blue Pacific Services |Tariff filing & contract publishing and surety bonds for ocean intermediaries |US |
| 2007
|Global Freight Exchange |Electronic air cargo booking system |UK |
| 2007
|RouteView Technologies |Delivery management software |US |
| 2008
|Pacific Coast Tariff Bureau |Regulatory compliance services |US |
| 2008
|Mobitrac Fleet Management Business |Fleet routing and scheduling SaaS |US |
| 2008
|Dexx |European customs filing and logistics messaging |Belgium |
| 2009
|Oceanwide |SaaS customs and regulatory compliance |Canada/US |
| 2009
|Scancode Systems |Parcel and LTL shipping software |Canada |
| 2010
|Porthus |Global trade management software |Belgium |
| 2010
|On-demand Canadian customs filing software |Canada |
| 2010
|Routing International |Route planning software |Belgium |
| 2011
|Telargo |Fleet telematics data gathering software and services |US/Slovenia/Hong Kong |
| 2011
|IntercommIT |Electronic exchange of trade data |Netherlands |
| 2012
|GeoMicro |Vehicle routing and navigation technology |US |
| 2012
|Infodis |Transportation management SaaS |Netherlands |
| 2012
|Logistics SaaS |US/Hong Kong |
| 2012
|Exentra |EU driver compliance SaaS |UK |
| 2013
|KSD Software Norway |Electronic customs filing software for the EU |Norway |
| 2013
|Impatex Freight Software |Electronic customs filing and freight forwarding software |UK |
| 2013
|Compudata |Supply chain integration and e-invoicing software |Switzerland |
| 2014
|Computer Management |Security information filing services and air cargo management software |US |
| 2014
|Customs Info |Trade data and research tools |US |
| 2014
|Mobile logistics automation software |US |
| 2014
|Pentant |Customs connectivity and import/export software |UK |{{Cite web|url=http://www.joc.com/regulation-policy/customs-regulations/international-customs-regulations/descartes-expands-european-0|title=Descartes expands European reach with two acquisitions|date=December 8, 2014|website=The Journal of Commerce|access-date=October 20, 2016}}{{Cite web|url=http://www.americanshipper.com/Main/News/Descartes_acquires_two_UKbased_customs_software_pr_58950.aspx#hide|title=Descartes acquires two UK-based customs software providers|last=Johnson|first=Eric|date=December 8, 2014|website=American Shipper|access-date=August 8, 2016}} |
| 2014
|e-customs |Electronic security and customs filing software |UK |
| 2015
|MK Data Services |Denied party screening data and software |US |
| 2015
|BearWare |Mobile carton tracking technology for retailers |US |{{Cite web|url=http://www.joc.com/international-logistics/logistics-technology/descartes/acquisition-aimed-giving-descartes%E2%80%99-shipper-more-supply-chain-visibility_20150723.html|title=Acquisition aimed at giving Descartes' shippers more supply chain visibility|date=July 23, 2015|website=The Journal of Commerce|access-date=October 20, 2016}} |
| 2015
|Oz Development |Logistics automation software for SMEs |US |
| 2016
|Pixi Software |e-Commerce order fulfillment and warehouse management software |Germany |
| 2016
|Appterra |Business-to-business supply chain SaaS |US |
| 2016
|4Solutions |Cloud-based supply chain integration |Australia |
| 2016
|Cloud-based trade data |US |
| 2017
|ShipRush |e-Commerce parcel shipping software |US |
| 2017
|PCSTrac |Shipment tracking software for retailers |US |
| 2017
|MacroPoint |Freight tracking technology |US |
| 2018
|Aljex Software |Cloud-based transportation management |US |
| 2018
|Velocity Mail |Shipment tracking service for airlines |US |
| 2018
|PinPoint GPS Solutions |Fleet tracking/mobile workforce technology |Canada |
| 2019
|Restricted and denied party screening |US |
| 2019
|Core Transport Technologies |Accurate tracking of international mail, parcel, and cargo shipments |New Zealand |
| 2019
|STEPcom |Business-to-Business supply chain integration network |Switzerland |
| 2019
|BestTransport |Transportation management system provider |US |
| 2020
|Peoplevox |Cloud-Based eCommerce WMS |UK |
| 2020
|Kontainers |Logistics SaaS |UK |
| 2020
|ShipTrack |Cloud-Based Logistics platform for Final-Mile Deliveries |Canada |
| 2021
|QuestaWeb |A leading provider of foreign trade zone (FTZ) and customs compliance solutions |US |
| 2021
|Portrix Logistic Software |Streamlines and automates complex global shipping rate management processes |Germany |
| 2021
|GreenMile |Cloud-based mobile route execution solutions for food, beverage, and broader distribution verticals |US |
| 2022
|NetCHB |Cloud-based platform to streamline and automate customs filing processes in the US |US |
| 2023
|GroundCloud |Cloud-based provider of final-mile carrier solutions and road safety compliance tools |US |
| 2024
|BoxTop Technologies |UK-based shipment management provider |UK |{{Cite news |date=2024-06-11 |title=Descartes Systems Group buys BoxTop Technologies for US$13-million |url=https://www.theglobeandmail.com/business/article-descartes-systems-group-buys-boxtop-technologies-for-us13-million/ |access-date=2024-10-10 |work=The Globe and Mail |language=en-CA}}{{Cite web |date=2024-06-12 |title=Descartes acquires UK-based logistics platform BoxTop for $18 million CAD {{!}} BetaKit |url=https://betakit.com/descartes-acquires-uk-based-logistics-platform-boxtop-for-18-million-cad/ |access-date=2024-10-10 |language=en-CA}} |
| 2024
|Sellercloud |US-based multi-channel e-commerce inventory and order management |US |
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.{{Cite web|url=http://www.cantechletter.com/2016/10/descartes-acquisition-apterra-gets-thumbs-cantor-fitzgerald/|title=Descartes' acquisition of Apterra gets thumbs up at Cantor Fitzgerald|last=Waddell|first=Nick|date=October 13, 2016|website=Cantech Letter|publisher=Cantech Communications|access-date=October 20, 2016}}
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.{{Cite news|url=https://www.wsj.com/articles/sap-links-with-descartes-for-transportation-management-service-1438199806|title=SAP Links With Descartes for Transportation Management Service|last=Chao|first=Loretta|date=July 29, 2015|work=The Wall Street Journal|access-date=July 29, 2015}}{{Cite web|url=http://www.joc.com/trucking-logistics/truckload-freight/canadian-emanifest-deadline-looms-us-truckers_20160109.html|title=Canadian eManifest deadline looms for US truckers|last=Cassidy|first=William|date=January 9, 2016|website=The Journal of Commerce|access-date=July 28, 2016}} 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.
References
{{reflist}}
External links
- {{Official website|https://www.descartes.com/}}{{Finance links|name=The Descartes Systems Group|symbol=DSGX|sec_cik=1050140|hoovers=descartes_systems_group_inc_the.0fa3dee7433af7a4}}
Category:Companies listed on the Toronto Stock Exchange
Category:1981 establishments in Ontario
Category:Software companies established in 1981
Category:Companies based in Waterloo, Ontario
Category:Software companies of Canada
Category:Companies listed on the Nasdaq
Category:Multinational companies headquartered in Canada
Category:Business software companies
Category:Supply chain software companies