Descartes revenue soars as shippers seek logistics solutions
- Descartes, a logistics technology platform, saw its revenue and income rise significantly in Q4 2018, the company said in a press release. Year over year, revenue rose 16%, and net come rose 13%.
- The company attributes its favorable financial results to high demand for logistics efficiencies, as its customers seeks e-commerce solutions within their supply chain.
- Descartes is also offering customers a "Global Trade Content Track," which continuously gathers data on trade and tariffs, to help inform companies' decision-making in regards to regulatory policies.
Navigating the e-commerce landscape is one of the biggest challenges for shippers, and many of them are seeking help from logistics and consulting platforms to optimize those solutions.
"While [e-commerce] may very well make our lives as consumers simpler is many ways, the business environment is getting more and more complex," Descartes CEO Ed Ryan said in an earnings call Monday. "We are here to help isolate our customers from this complexly and to help them thrive in this challenging environment."
The company offers solutions through a Global Logistics Network, which uses data and technology to help retailers transform their deliveries. Last month, Descartes acquired Aljex, a cloud-based provider specialized in transportation management solutions (TMS), to help navigate freight capacity shortages.
In a world where consumers demand instant gratification, fast, accurate and efficient delivery can be the differentiator for retailers.
"We continue to be a go-to company for retailers who are looking to distinguish their business based on their logistics operations," Ryan said.
In addition to logistics and transportation, Descartes is attempting to help its customers navigate changing trade and regulations. The company's Global Trade Content Track may prove especially useful in the current climate, with tariffs announced on U.S. imports of steel and aluminum and NAFTA negotiations ongoing.
"If you are going to modify your supply chain as a result of any changes in duties and tariffs, you may need to look for new suppliers or potential buyers, and you can do that using our data mine tools," Ryan said.
As long as logistics challenges, whether last-mile delivery, e-commerce or trade, continue to exist, shippers will seek solutions from other companies. That means more customers — and likely more revenue — for Descartes.
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