Yahoo Finance Descartes' (DSGX) Solution Used by Yellow Diamond Logistics
Descartes Systems DSGX recently announced that Yellow Diamond Logistics, a noted third-party logistics company certified with the Transportation Security Administration is embracing Descartes technology to streamline its operations and boost AI-powered capacity sourcing.
By seamlessly incorporating the Descartes Aljex transportation management system with Descartes MacroPoint, Yellow Diamond Logistics aims to achieve a remarkable 99% on-time delivery performance, added Descartes.
The Descartes Aljex solution has been instrumental in enhancing operational efficiency by automating and simplifying key freight broker activities. From order entry, lane rate comparison, covering loads and rate confirmation to carrier acceptance and dispatching, the integrated system has optimized daily operations, enabling seamless access to transportation management information from any location.
The integration with Descartes MacroPoint empowers logistics companies with real-time load-tracking capabilities, thereby reducing time on calls and emails. It also aids brokers in foreseeing long-term needs to curb potential transportation risk or disruption.
DSGX highlighted the significance of its solutions in empowering Yellow Diamond Logistics to compete effectively in the market without the need for a large IT team. The user-friendly nature of Descartes solutions is allowing companies to drive delivery performance, stand out among competitors and unlock new revenue streams by harnessing the full potential of their transportation operations.
Based in Canada, Descartes provides software-as-a-service logistics solutions to businesses, including transportation and logistics, manufacturing, retail and healthcare.
DSGX’s aggressive acquisition strategies and innovative product mix are driving growth for the company.
In April 2024, it announced the acquisition of Aerospace Software Developments for nearly €57 million ($61 million), settled with €54 million paid upfront in cash. The acquisition is scheduled to be closed in fourth-quarter fiscal 2025.
In March 2024, it purchased OCR Services, Inc. for roughly $90 million in cash. DSGX aims to leverage OCR’s solutions and content to its Global Logistics Network in order to increase market penetration and enhance customer satisfaction.
In the last reported quarter, DSGX revenues soared 11% year over year to $151.3 million, owing to solid growth in service revenues. Acquisition of OCR, Thyme ASD, GroundCloud and Localz has acted as a key catalyst. The top line beat the Zacks Consensus Estimate of $150 million.
At present, DSGX carries a Zacks Rank #3 (Hold). Shares of the company have gained 23.4% compared with the sub-industry’s growth of 26.5%.
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