Chris Jones, EVP Industry & Services, Descartes Systems Group, in an exclusive interview with Freightcomms talking about the acquisition of Supply Vision by Descartes.
1. Please give some background to Supply Vision.
Supply Vision provides domestic and international forwarding and freight brokerage shipment management solutions that provide warehouse management, transportation management, customer shipment visibility and specialized industry capabilities for managing tradeshow shipments.
2. How did the relationship begin?
Both companies have long-term presence in the logistics services provider (LSP) industry and members of Descartes and Supply Vision leadership have known each other for quite a while through industry contact.
What drew each company to the other?
Descartes was attracted to Supply Vision’s domestic freight forwarding management capabilities including air cargo and land-side transportation operations. Supply Vision was looking to combine with a larger organization to expand its capabilities for its customers and its market opportunities.
3. How is MacroPoint improving Supply Vision’s capabilities?
Descartes MacroPoint’s visibility helps in two ways: for Supply Vision’s customers (brokers and forwarders) and for Supply Vision’s customers’ customers (the ultimate shipper of the goods). Supply Vision’s customers (the brokers and forwarders) use third-party carriers to execute their shipments and, to better manage them, they need to understand the real-time status (e.g., location) of shipments. This location data can also be provided to Supply Vision’s customers’ customers (the shippers) to see their shipments and make inventory deployment decisions in advance of its arrival.
4. Is Supply Vision integrating or benefiting from other Descartes’ solutions – if so, which ones?
Yes, Supply Vision will be integrated to the Descartes Global Logistics Network™ (Descartes GLN™) for LSP/carrier communications, and other solutions that support domestic freight brokerage and international transportation.
5. Do you see an upwards trend of more LSPs integrating this kind of technology?
The trend is increasing as LSPs need to digitize their operations to compete. Customers expect better service and this kind of solution helps them better manage shipments and provide that information to customers. LSPs also need to increase margins and make their resources more productive. Supply Vision’s shipment manage solution helps to streamline LSP operations allowing them to do more with their resources.
If so, what are the enablers to investing and integrating in this innovation? On the contrary – what are some of the barriers to integrating/investing that you’re seeing?
Because Supply Vision is a software-as-a-service solution, the cost and complexity of paying for and operating got much easier for LSPs. Upfront fees are lower and costs can be tied more closely to use and IT staff is minimal. The great inhibitor is LSPs breaking from traditional
manual paper-based processes and a reliance on interactions with customers that are too “high touch”, which slows down requests for shipment status, rates, bookings, etc.
6. How will Descartes enhance Supply Vision’s shipment management performance?
Supply Vision has great functionality for domestic forwarding and transportation execution. Efficient transportation execution is very dependent on real-time communications and visibility with carriers, other LSPs, and customers. Descartes’ MacroPoint and GLN networks vastly extend the reach and efficiency of Supply Vision in getting connected with all the parties involved in transportation. Descartes will also add capabilities related to optimization, planning, and mobile solutions into the equation for Supply Vision that will enhance shipment management capabilities.
7. What are some of the most impactful benefits Supply Vision will reap with the acquisition?
Descartes brings greater critical mass and stability to Supply Vision and its customers. Supply Vision will have access to expanded capabilities in areas like customs compliance, customer and carrier integration and other solutions that support LSP operations.
What about Descartes?
The LSP industry is highly specialized. Supply Vision will help Descartes better serve domestic freight forwarders who manage air cargo shipments and land-side transportation operations.