Dive Brief:
- Logistics specialist Descartes Systems Group has acquired Aljex Software, a cloud-based solutions provider for freight and transportation brokers, for $32.4 million, Descartes announced last week.
- Aljex specializes in supply chain transparency, as well as automating business procedures and using electronic documents critical for executing transportation moves, including real-time tracking.
- Aljex CEO Tom Heine said in a press release one reason for the acquisition is to help Descartes better manage capacity, which could be a game changer as the trucking industry continues to struggle with capacity crunch.
Dive Insight:
Descartes is snapping up young shipping technology companies around the world, most of which further shipping efficiency and supply chain visibility.
Before purchasing Aljex, Descartes' latest acquisition was the Cleveland-based transportation visibility provider MacroPoint, which specialized in aiding shippers, freight brokers and transportation management system software companies with increased visibility into domestic freight loads.
Descartes has bought more than 20 companies since 2012, which range from Saas providers to data mining for multi-industry use, such as Datamyne. Though seemingly a wide variety of service providers, all the companies targeted for purchase point to a similar goal through related methods: improving the process of verifying information and the transport visibility that results.
With Aljex, Descartes will be able to reach new customers but also have an experienced, tech-savvy partner to help dip into new tech and new ways to develop greater efficiency and cost savings.
Aljex will also help Descartes more efficiently manage truck capacity, which could result in huge cost savings for the logistics company, especially as the truck driver turnover rate continues to hover at 99% and capacity dwindles.
More efficiently managing capacity could also help keep Descartes' rates down, which would make the 3PL a more attractive solution for shippers.
