WATERLOO, ONTARIO, May 22, 2002 - The Descartes Systems Group Inc., (Nasdaq:DSGX), (TSX:DSG), a trusted provider of logistics solutions, today announced that research conducted by ARC Advisory Group, a leading industry analyst firm, has named Descartes the number one supplier of transportation management solutions worldwide. According to ARC's April 2002 report, Transportation Management Systems Worldwide Outlook, Descartes has captured the leading market share of transportation management solutions in a market expected to double to over $1.6 billion by 2006.
Descartes was ranked number one worldwide in several sub categories including procurement, fleet management solutions and supply chain process management (SCPM) solutions and was also the overall leader in the following market regions: Asia Pacific, Europe, the Middle East and Africa (EMEA).
"Instead of creating yet another three-letter acronym, I chose to work within the framework of transportation management systems," said Adrian Gonzalez, senior analyst, ARC Advisory Group. "It's clear, however, that the traditional definition of TMS (Optimization) is no longer valid in light of the changes that have occurred relative to technology, functionality and deployment options. For example, leading vendors like Descartes are incorporating multimodal transportation management, routing and scheduling, carrier contract and shipment management, global visibility and inventory control, thereby creating a more complete logistics management solution."
ARC defines transportation management systems as software solutions that facilitate the procurement of transportation services, the short-term planning and optimization of transportation activities, and the execution of transportation plans. Transportation management includes six categories: procurement, planning & execution, fleet management, international trade, parcel shipping and SCPM. It also includes continuous analysis and collaboration.
Gonzalez continued: "Descartes' success can be attributed to the company's key differentiators, including its ability to provide network-based logistics solutions via a subscription-based pricing model; its expertise in fleet management and wireless solutions; and its contract management and rating capabilities. With license fees shrinking and hosted networks and solutions gaining momentum, Descartes is well-positioned to remain a leader in the market given its recurring revenue pricing model and the scope of its Global Logistics Services Network."
Research Methodology
Forecasts are based on a number of factors, including historical growth, technology and economic trends, supplier feedback, end-user comments, and ARC's assessment of each segment's potential for growth. Dollar forecasts assume an inflation rate of three percent.
ARC calculates base year market size in terms of calendar year shipments by industry participants, not by bookings or orders. Market share figures are derived from license, services, maintenance, and recurring revenues (e.g. transaction, subscription, and hosting fees); hardware revenues are excluded, along with margins earned by system integrators, distributors, and other third parties involved in product distribution.
Data on market size, market shares, and segmentations are derived mainly from interviews with over 45 TMS suppliers around the globe.
About ARC Market Outlook Study
The ARC Market Outlook Study entitled Transportation Management Systems Worldwide Outlook: Market Analysis and Forecast through 2006 is a global study of the transportation management solutions market. The study also includes market shares by solution type, geographic region, customer tier and vertical industry plus forecasts and supplier profiles.
About ARC Advisory Group
ARC Advisory Group provides strategic planning and technology assessment services to leading manufacturing companies, utilities and global logistics providers, as well as to software and solution suppliers worldwide. From Global 1,000 companies to small start-up firms, ARC has the strategic knowledge needed to success in today's technology driven economy. Further information can be obtained from Maryanne Flynn at ARC, Three Allied Drive, Dedham, MA 02026, 781-471-1160, Fax 781-471-1060, E-mail mflynn@arcweb.com, Web www.arcweb.com.
About Descartes
The Descartes Systems Group Inc. (Nasdaq:DSGX) (TSX:DSG) is a trusted provider of logistics management technology. In over 60 countries Descartes' leading logistics solutions drive operational efficiency, enhance customer responsiveness and improve precision in purchasing for global organizations. For more information, visit www.descartes.com.
All registered and unregistered trademarks mentioned in this release are the property of their respective owners.
Statements in this release include forward-looking statements relating to market size, market share and market outlook made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding Descartes' leading market share of the transportation management solutions market. These statements were not made by Descartes and are neither promises nor guarantees, but involve risks and uncertainties that may cause actual market share and market size results to differ. In particular, projections of market growth may not materialize, competitors may introduce solutions that erode Descartes' market share and customer preferences may change. For further information regarding risks and uncertainties associated with Descartes' business, please refer to Descartes' documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada.
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Contact Information:
Public Relations
Kimberley Emmerson
Tel: (519) 746-6114, ext. 2562
kemmerson@descartes.com
Investor Relations
Chaya Cooperberg
Tel: (519) 746-6114, ext. 2757
ccooperberg@descartes.com