Descartes Acquires PCSTrac Business

Descartes Systems Group said it has acquired the assets of Philadelphia based PCSTrac, Inc., including certain related assets of Progressive Computer Services Inc. dba PCS Technologies. The purchase price for the cash acquisition was approximately $11.25 million

 

U.S.-based PCSTrac helps specialty retailers and logistics service providers collaborate to improve carton-level visibility for shipments from distribution centers (DCs) to stores. PCSTrac’s solutions provide visibility and insight into the store replenishment supply chain, helping increase sales, enhance loss prevention, and improve inventory control. Logistics service providers use the system to improve efficiencies and customer service levels with solutions that are pre-configured to meet each retailer’s delivery compliance expectations. Like Descartes’ Bearware platform, PCSTrac also supports pool distribution, which helps retailers reduce logistics costs and minimize store disruptions by eliminating unconsolidated direct shipments from suppliers and retailer distribution centers.

 

"Although store sales still represent the majority of revenues for specialty retailers, the continued rise in ecommerce and omni-channel retailing put more pressure on retailers to find new ways to compete and meet the ever-increasing expectations of the consumer,” said Ken Wood, Executive Vice President of Product Management at Descartes. “Part of the challenge is to make sure you have the right goods, in the right location, at the right time and for the lowest cost. Having forward-deployed inventory and affordable last-mile store fulfillment infrastructure is an effective way to meet these expectations, and also sets the stage for last-mile customer fulfillment for home delivery.”

 

Pool distribution has become an increasingly important strategy as it leverages a growing community of retailers and pool carriers to substantially lower distribution costs, increase delivery frequency, and improve overall replenishment performance. Effective pool distribution requires a common technology system for participants that helps standardize the process and provides carton level visibility across the entire store replenishment lifecycle.

 

“Our combination with PCSTrac complements our previous investment in BearWare and shows our commitment to providing our customers with tools to manage an increasingly complex omni-channel environment,” said Edward J. Ryan, Descartes’ CEO. “By combining two market leaders in carton-level tracking and pool distribution with our Global Logistics Network, we can bring increased efficiencies to both retailers and their logistics service providers.”