ARC Advisory Group Names Descartes Market Leader In Transportation Management Solutions For Second Consecutive Year
WATERLOO, Ontario--June 4, 2003--Market expected to grow more than 70 percent by 2007
The Descartes Systems Group Inc., , (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 market leader in transportation management systems (TMS) worldwide in the June 2003 report, Transportation Management Systems Worldwide Outlook, for the second consecutive year. According to ARC, the TMS market is expected to grow more than 70 percent to over $1.4 billion by 2007.
ARC defines TMS 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. It also includes continuous analysis, performance management, and collaboration. Ranked the market leader in TMS by ARC, Descartes was also ranked number one in several sub categories including fleet management solutions and connectivity services.
"For the second year in a row Descartes has secured its position as a leading provider of transportation management solutions," said Adrian Gonzalez, Director of the Logistics Executive Council at ARC Advisory Group. "The Company's success can be attributed to several important factors, including a diversified and robust solution footprint; a large installed client base; the ability to support clients on a global basis; and financial discipline. These attributes will continue to play a critical role in defining long-term success; hence Descartes is well positioned to remain a leader in this market."
Identifying the changing landscape of the TMS market, the ARC report notes that hosted or network-based solutions in combination with a recurring pricing model are, in many cases, the best option for companies looking to buy and deploy a solution. Descartes was named as having the dominant market lead in this sector - more than two and a half times the market share over its nearest competitor - for recurring-revenues related to TMS.
Commented Gonzalez, "While subscription-based pricing models may have failed in other markets, it continues to gain momentum in the TMS market and companies like Descartes are leading the way."
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 suppliers around the globe.
About the ARC Market Outlook Study
The ARC Market Outlook Study entitled Transportation Management Systems Worldwide Outlook: Market Analysis and Forecast through 2007 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. Additional information can be obtained at www.arcweb.com/research/ent/tms.asp.
About Descartes
The Descartes Systems Group Inc. (TSX:DSG) is a trusted provider of logistics management technology. In more than 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.