The Descartes Systems Group Inc.

The Descartes Systems Group Inc.

November 08, 2005 07:00 ET

World-Leading Freight Forwarders Select Descartes for New Initiative to Integrate Pick-Up and Delivery Options With Local Carriers

WATERLOO, ONTARIO--(CCNMatthews - Nov. 8, 2005) -

Connections Over Descartes' Global Logistics Network™ to Enable Door-To-Door Services for Logistics Services Providers

The Descartes Systems Group Inc. (NASDAQ:DSGX)(TSX:DSG), a leading provider of on-demand delivery management solutions and services for transportation, logistics, manufacturing, retail and distribution enterprises, today announced that world-leading freight forwarders headquartered in Japan, Germany and Switzerland have selected Descartes for a new initiative to create a network of local carriers on Descartes' Global Logistics Network (GLN). The initiative is designed to help logistics services providers (LSPs) manage their operations with dray-haulers, cartage agents and pick-up and delivery agents to offer integrated, efficient and transparent door-to-door services by exchanging logistics information through the GLN.

An Industry-Wide Challenge

Until now, a lack of business process standardization and connectivity between LSPs and the local carriers responsible for the first- and last-mile of delivery has hampered the ability of LSPs to provide their customers with high quality door-to-door service. Without a standardized business process and straightforward way to exchange information with the numerous local carriers, and without using a network-based solution to efficiently process and leverage that information, proof-of-delivery cycles are elongated, carrier assignments are less than optimal, and invoice settlement is manual and error-prone. This results in LSPs relying on incremental internal resources to manage their mass of local carriers, losing load consolidation opportunities and enduring extended billing cycles. In addition, since local carriers often lack access or a method to promptly communicate proof-of-delivery information to all of the LSPs in the area the local carrier serves, they feel the pain of extended payment cycles until delivery can be confirmed.

Descartes' Solution

Descartes created Descartes Local Haulage Service™ at the request of leading LSPs to address their local carrier management needs. Descartes' Global Logistics Network, a network with more than 1,400 North American truck carriers already connected, has established procedures and experience to help minimize the effort needed to connect additional local carriers for LSPs. The GLN provides connectivity with local carriers via multiple methods -- from "scan on/scan off" mobile devices, to electronic document interchange, to webforms that can readily integrate local carriers regardless of their level of technological sophistication. With quick access to local carriers in numerous ways, LSPs can take advantage of Descartes' Local Haulage service to optimize loads, automate pick-up and delivery assignment, and streamline proof-of-delivery and invoice settlement with their local carriers.

"Our extensive network of connected trucking companies and LSPs, together with our experienced trading partner implementation team, make us a logical provider of this type of standards-based network solution," said Edward Ryan, Descartes' General Manager, Global Logistics Network. "Descartes has been providing air carrier messaging services to LSPs for more that 10 years. It's natural for us to also extend connections to local trucking companies who perform the first- and last-mile of delivery, so that LSPs can deliver door-to-door service to their customers."

World-Leading Freight Forwarders Select Descartes

Kintetsu World Express (USA), Inc. is one of the world-leading freight forwarders who have selected Descartes' Global Logistics Network to connect to local trucking companies. "Achieving greater connectivity with our local carrier partners is critical to our ability to provide high quality service to our customers in a cost-effective way," said James Kagawa, vice president, IT Department, Kintetsu World Express (USA), Inc. "Descartes is at the forefront of providing companies like Kintetsu with not only the network of local carriers, but the services to streamline the booking, proof-of-delivery and settlement processes."

In addition, Descartes announced on November 2, 2005 that Schenker, Inc., a leading international air and ocean freight forwarding, customs brokerage and logistics services provider based in Germany, has signed a multi-year agreement for Descartes' Local Haulage solution.

"I'm very excited about the pace at which this initiative is being embraced by the market as a standard for connecting LSPs and local carriers," said Arthur Mesher, CEO of Descartes. "Our latest Local Haulage value-added solution allows our customers, both large and small, to leverage the power of our network to help give them a competitive advantage in offering door-to-door service competitive with the larger, integrated carriers. At the same time, there is an opportunity for local carriers to increase their market reach with access to the business of a wider number of LSPs operating in their area."

About the Global Logistics Network (GLN)

The Descartes Global Logistics Network, one of the world's largest multimodal networks of transportation providers, LSPs and their customers, facilitates the exchange of logistics information and provides services that leverage that information. Services available on the GLN help transportation providers and LSPs better manage their book-to-bill process, optimize fleet performance, and effectively communicate with their logistics partners.

About Descartes

The Descartes Systems Group Inc. is a leading provider of on-demand delivery management solutions for transportation, logistics, manufacturing, retail and distribution enterprises. Descartes delivers trading partner connectivity and document exchange, route planning, wireless dispatch, rate management, inventory and asset visibility, transportation management and warehouse optimization solutions for industries such as retail, consumer goods, manufacturing, transportation, distribution and third-party logistics. Descartes offers solutions that can be deployed as traditional applications or as a service to help customers optimize and gain real-time control of their inventory, logistics assets and mobile workforce. Descartes solutions are used by more than 2,500 customers in over 60 countries. For more information, visit

Safe Harbor

This release contains forward-looking statements that relate to Descartes' product and service functionality and performance, potential benefits derived therefrom by LSPs and local carriers, speed of deployment, the competitive position of Descartes and its products and services, timing for release of solutions and services, and other matters that may constitute forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes to differ materially from the anticipated results, performance or achievements implied by such forward-looking statements. Such factors include, but are not limited to, the factors discussed in the sections entitled, "Risk Factors" and "Certain Factors That May Affect Future Results" in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada.

All registered and unregistered trademarks mentioned in this release are the property of their respective owners.

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