Descartes Acquires MK Data Services
Descartes has acquired MK Data Services LLC (MK Data), a leading US-based provider of denied party screening trade data and solutions. MK Data provides comprehensive technology solutions that help more than 900 businesses to screen prospects and clients against a comprehensive database of restricted and denied parties.
Governments of various countries, as well as international organizations, maintain a variety of lists of people, organizations and countries that are illegal or restricted to do business with. This includes customers, suppliers, employees and business partners for business processes such as contracting, shipping and payment. Often, the burden of compliance with these business restrictions is placed on those involved in the logistics of a shipment, such as the exporting business, the logistics intermediary / freight forwarder or the transportation carrier. Penalties for non-compliance have included civil fines, revocation of export privileges and criminal charges. In addition, since penalties are published publicly, non-compliance with these trade restrictions can bring with it tremendous reputational damage.
Descartes’ strategy is focused on growing and operating the most complete and interoperable global Logistics Technology Platform. Descartes’ Logistics Technology Platform uniquely combines the Global Logistics Network (GLN), a wide range of modular and interoperable logistics applications and the largest community of logistics-intensive companies in the world. The acquisition advances Descartes’ strategic objective to strengthen its global presence and leadership position by:
- Increasing the scale of Descartes’ network by making denied parties transactions available over the GLN – it is a unifying acquisition as trade compliance is both an individual and shared interest of every single participant on the GLN ;
- Strengthening Descartes’ Customs and Regulatory Compliance and Trade Content application footprint by adding tools and new functionality for denied parties screening; and
- Growing Descartes’ global multi-modal logistics community with additional multi-national shipper customers.
Expanding Descartes’ Global Logistics Network
Descartes’ Global Logistics Network (GLN) is the foundation on which the applications and community are built. The GLN provides community members the flexibility to easily connect and collaborate with global trading partners. The MK Data acquisition increases the scale of Descartes’ network by adding denied party screening content services and related transactions. Over 11,000 customers use the GLN to manage and execute shipments every day across various modes of transportation, countries of origin and destination and commodities. The combination with MK Data is truly a unifying acquisition, as trade compliance is both an individual and shared interest of every single participant on the GLN.
In addition, MK’s denied party screening content, along with Descartes’ Customs Info duties and taxes content, powers a number of large GTM application providers’ systems, which has the potential to drive additional customs filings volume on the network.
Enhancing Descartes’ offering of logistics management applications
Descartes’ product strategy is focused on expanding its logistics application functional footprint to provide its customers with the most comprehensive logistics management solutions in the industry. MK Data has been building its comprehensive database and related solutions for nearly 25 years. The acquisition will strengthen Descartes’ Customs and Regulatory Compliance platform and its Trade Content applications with new functionality and tools for denied parties screening.
Growing Descartes’ global multi-modal logistics community
Descartes’ logistics community is the largest multi-modal network of logistics intensive companies in the world, with over 220,000 parties using its cloud-based services in over 160 countries. Descartes’ mission is to create the world’s most comprehensive networked logistics community. MK Data serves over 900 customers, many of which are large multi-national shippers, including a number of joint customers.
About MK Data
MK Data provides comprehensive technology solutions that help more than 900 businesses to screen prospects and clients against a comprehensive database of restricted and denied parties.
With existing integration to Descartes’ Global Logistics Network, MK Data’s technology screens shipments against a comprehensive updated international database of restricted parties. MK Data’s proprietary matching algorithms, which customers can sensitivity-adjust to suit their own risk concerns, flag potential compliance issues for prompt resolution. MK Data also integrates to leading Global Trade Management (GTM, Customer Relationship Management (CRM) and enterprise resource planning (ERP) systems to enable customers to implement a comprehensive trade compliance program.
The acquisition makes MK Data’s customers members of the world’s premier global logistics community – The Global Logistics Network – facilitating improved performance and productivity of logistics operations around the world. As part of this community MK Data’s customers will have access to additional solutions via Descartes’ Logistics Technology Platform to improve rate management, dock appointment scheduling, transportation management, routing and scheduling, and in-transit inventory visibility.
MK Data is based in Columbia, Maryland. You can visit the MK Data website at www.mkdataservices.com.