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Descartes' 9th Annual Study Finds Transportation Management Reaches Record Strategic Importance

1. 81% of logistics providers see transportation management as a competitive edge. 2. Only 17% of firms report being fully automated in transportation processes. 3. 80% of companies plan to increase TMS IT spending significantly. 4. 72% anticipate at least 5% annual revenue growth over the next two years. 5. AI adoption in logistics is rising, with 96% of respondents leveraging it.

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FAQ

Why Bullish?

Growing recognition of TMS as vital may enhance DSGX’s market position. Historical success post-similar surveys supports growth expectations; stock growth typically follows increased industry investment in tech.

How important is it?

High percentage of logistics professionals prioritizing transportation indicates strong future demand for DSGX’s solutions. This growing focus on TMS provides a solid foundation for revenue growth and market expansion.

Why Short Term?

Immediate uplift expected as logistics firms boost investments in TMS due to survey findings. Short-term market trends usually respond positively to enhanced operational efficiencies.

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81% of shippers and logistics services providers view transportation as a competitive weapon; growth and AI adoption driving investments despite automation gap LONDON and ATLANTA, Sept. 15, 2025 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced the results of its 9th Annual Global Transportation Management Benchmark Survey of more than 600 companies. The study reveals that 81% of the shippers and logistics services providers (LSP) surveyed view transportation management as a differentiator or competitive weapon. This is a record high in the nine years of the study, underscoring transportation management’s rising role in fueling business growth and customer value. Similarly, those viewing transportation as a basic service or not important dropped to a 19%, an all-time low since the inception of the study. While transportation management systems (TMS) are increasingly recognized as an essential solution in modern technology environments for shippers and LSPs, significant gaps remain in automation and digital maturity. Only 17% of respondents report being fully automated, with over one-third heavily or mostly reliant on manual processes (see Figure 1). This digital gap is especially pronounced between companies with industry leading financial performance (51% fully automated processes) and those with below average financial performance (5% fully automated processes) who trail significantly in automation, artificial intelligence (AI) adoption and growth expectations. Figure 1. How mature is your company’s transportation technology adoption? Source: Descartes In terms of adopting generative AI specifically, an overwhelming 96% of overall respondents indicated they are using it within their operations, with the top three use cases cited as data entry (41%), route/load optimization (39%), and AI-driven freight forecasting and automated load matching/capacity sourcing (both 35%) (see Figure 2). The 4% of respondents not using generative AI were much more likely to view transportation management as a necessary evil and more likely to expect limited to no growth over the next two years. Figure 2. Is your company leveraging generative AI in any of these areas? (select all that apply) Source: Descartes Other key findings include: TMS investment increasing: 80% of respondents plan to increase TMS IT spending, with top priorities in performance management, visibility, and fleet routing.Fraud and theft prevention rising: Carrier monitoring (i.e., insurance, safety, fraud) emerged as a top three TMS capability, with North American respondents prioritizing the capability 7% higher than European counterparts.Strong growth outlook: 72% of respondents expect at least 5% annual revenue growth in the next two years “This year’s survey shows a sector making meaningful progress in elevating transportation from a cost center to a strategic driver of customer value and business growth,” said Mike Hane, Director, Product Marketing, Transportation Management at Descartes. “This transition is backed by greater investment in TMS technology, according to study findings, as companies seek to more fully embed automation and AI in transportation management operations to enhance performance and generate value.” Descartes and SAPIO Research surveyed 616 participants evenly split between logistics services providers (LSPs) (i.e., brokers, forwarders and third-party logistics providers) and shippers (i.e., manufacturers, distributors and retailers) from a wide variety of industries. The goal was to understand how companies view the role of transportation management; uncover which capabilities, technologies and competitive strategies/tactics are having the greatest impact on transportation operations; and provide an outlook on future transportation IT investment. Respondents were based in the United States, Canada and in Western Europe. To learn more, read the full report: Descartes’ 9th Annual Global Transportation Management Benchmark Survey. Learn more about Descartes’ Transportation Management solutions. 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, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of 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: 226-750-8050                                  cstrohack@descartes.com   Cautionary Statement Regarding Forward-Looking StatementsThis release contains forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relate to Descartes’ transportation management solution offerings 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 regulatory authorities across Canada including Descartes’ most recently filed annual and interim management’s discussion and analysis which are available under Descartes’ profile through the EDGAR website at http://www.sec.gov or through the SEDAR+ website at http://www.sedarplus.com/. If any such risks actually occur, they could, among other consequences, 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. Photos accompanying this announcement are available at:  https://www.globenewswire.com/NewsRoom/AttachmentNg/be901dbc-c959-45a0-a5da-6eb00200680d https://www.globenewswire.com/NewsRoom/AttachmentNg/a8fae2c7-d135-4828-b7dd-bc56f08cdd67

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