The Descartes Systems Group Inc (NASDAQ:DSGX) Q3 2020 Earnings Conference Call - Final Transcript
Dec 04, 2019 • 05:00 pm ET
Edward J. Ryan
network has been set up to help customers deal with an increasingly unpredictable business environment. Descartes has been connecting trading partners for more than 20 years to help them exchange information, automate processes, and move goods more efficiently. We are in the information business and we always have been. We are in a constant mission to connect more parties, collect more data and help those parties make use of that data.
The proliferation of IoT devices and an increasing demand for real-time information is great news for us. Quite simply, we can now collect more data and we can get our hands on it quicker than ever before, but that's not an easy thing to do. It takes years to build a network and a lot of domain expertise to constantly keep up with the new standards while also maintaining old standards as not all customers move at the same pace.
Logistics is a multi-party, multi-process problem and when you cut across nodes, geographies and industry verticals, you end up with a lot of data protocols and sources for data collection. You also end up with different data needs and semantics based on the type of supply chain participant. The carrier will think about things differently than the shipper as well the forwarder and the government agencies that they need to connect to.
So if you want to have all those parties on your network, you need to have solutions that meet their requirements, which means solutions for shippers, carriers, and logistics intermediaries. More than ever, we believe that connectivity is key. And increasingly, it is real-time connectivity that customers demand. Connectivity is required across the supply chain whether it's a consumer order or a B2B order. In order to be agile and react quickly to the opportunities that are out there, you need to connect with your customers, your logistics partners, applicable governments, your inventory information, and if you're moving goods internationally, you also need to be connected to updated content to understand total landed costs and regulatory requirements. We've seen this coming and have added to our network accordingly and we continue to invest in our network because the challenges for our customers are getting greater every day with the Amazon effect, and the constantly changing regulatory environment.
When we think about what's next, we continue to invest to get good data quickly for our customers, which is where we think our long-term strategy of connecting shippers, carriers and logistics intermediaries will continue to pay off. Let's now take a step forward in terms of how our customers are making use of our network with access to real-time information, global trade content and connected trading partners. And let's take a look at that through the lens of a shipper, a carrier and a logistics intermediary for a few examples.
Last week was Black Friday, which is now a global phenomenon. It presents challenges and opportunities for shippers, carriers, and logistics intermediaries. From a shipper perspective, the challenges and