Descartes’ Study Reveals 65% of Companies Plan to Accelerate Supply Chain and Logistics Innovation Investment

Rhea-AI Summary

Descartes Systems Group (Nasdaq: DSGX) released a study revealing that 59% of surveyed logistics companies accelerated their innovation investments over the last two years. The study encompassed 1,000 decision-makers across North America and Europe and found 65% plan to increase technology spending in the next two years. However, 87% still face significant internal barriers to innovation. The report underscores the critical importance of supply chain innovation for business success and highlights that while companies are starting their innovation journeys, there remains substantial progress to be made in areas like digitization and advanced computing technologies.

Positive

• 59% of companies accelerated innovation investments in logistics.
• 65% plan to increase technology spending over the next two years.

Negative

• 87% of companies face internal barriers to logistics innovation.

ATLANTA and LONDON, Jan. 30, 2023 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq: DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, released findings from its study Supply Chain and Logistics Innovation Accelerates, but Has Long Way to Go, which examined how technology innovation is changing supply chain and logistics operations and executives’ plans for continued investment. The report found that 59% of companies surveyed accelerated the pace of innovation investment and deployment over the last two years. Moreover, 65% plan to increase their technology spending over the next two years; however, 87% indicated they still face internal inhibitors to supply chain and logistics innovation.

The study of 1,000 supply chain and logistics decision-makers across nine European countries, Canada and the United States provides supply chain and logistics organizations with critical insights into the importance of innovation and differences in the strategies, tactics and technology decisions of top financial performers and those companies whose senior management thought innovation was very important. 

“The recent past has highlighted that supply chain performance can make or break companies and the need to innovate supply chain and logistics operations has moved to the forefront of many C-suite agendas,” said Chris Jones, EVP, Industry and Services at Descartes. “The study shows that, while efforts in supply chain and logistics innovation are accelerating, many companies are relatively early in their innovation journey in areas such as digitization and especially in the use of advanced computing technologies such as machine learning.”

The study analyzes the connection between innovation and business success, the drivers of supply chain and logistics innovation, the expected benefits of innovation to companies, and the obstacles inhibiting the pace of innovation and innovation investment. The study also examines where supply chain and logistics innovation is considered to be the strongest and the weakest, the degree to which key supply chain and logistics innovative technologies are deployed and innovation focus areas today and in the future. Lastly, it provides insight into how the importance of supply chain and logistics innovation changes on a geodemographic basis. To learn more, read the report Supply Chain and Logistics Innovation Accelerates, but Has Long Way to Go.

About Descartes

Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, performance and security of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, schedule, track and measure delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world's largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and Twitter.

Global Media Contact
Cara Strohack                                                                     
Tel: +1(800) 419-8495 ext. 202025                                 
cstrohack@descartes.com  

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relate to Descartes’ solution offering and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, "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 including Descartes’ most recently filed management's discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

FAQ

What were the key findings of the Descartes Systems Group study on supply chain innovation?

The study found that 59% of companies accelerated innovation investments, and 65% plan to increase technology spending, but 87% face internal barriers.

What percentage of companies accelerated their innovation investments according to DSGX?

59% of companies surveyed accelerated their innovation investments over the past two years.

What challenges do companies face in supply chain innovation according to DSGX?

87% of companies reported facing internal inhibitors to supply chain and logistics innovation.

How many decision-makers were surveyed in the DSGX study?

1,000 supply chain and logistics decision-makers were surveyed across nine European countries, Canada, and the U.S.

What is the significance of the DSGX study for investors?

The study highlights the critical role of supply chain innovation for business success, signaling potential growth areas for investors.