Does the implementation of CargoWise using their SAAS model decrease Enterprise Value?

1. What CargoWise SaaS actually does to your business

CargoWise under a SaaS model typically means:

• You don’t own the system
• You pay recurring fees (OPEX instead of CAPEX)
• Core workflows become standardized
• Data is structured, but not proprietary in itself

So structurally, this is an outsourced model, not insourcing.

2. Where EV can decrease

Enterprise value is not just about EBITDA. Buyers also look at:

• Differentiation
• Control over processes
• Scalability without external dependency

Using CargoWise SaaS can reduce EV if it leads to this outcome:

a) You become operationally efficient but not differentiated

• Many forwarders use CargoWise
• Your processes start to look like everyone else’s
• Buyers see you as a commodity operator

b) Savings are shared with the vendor

• You reduce manpower
• But ongoing SaaS costs increase
• Net EBITDA improvement is limited

c) Dependency risk increases

• Pricing power sits with WiseTech Global
• You don’t control roadmap or AI layers
• Switching costs are high

👉 In this case, valuation multiples can compress
→ You look like a process user, not a process owner

3. Where EV can increase

CargoWise can absolutely increase EV if used correctly:

a) It improves EBITDA meaningfully

• Faster billing
• Lower leakage
• Better working capital
• Reduced headcount dependency

b) You build on top of it

• Internal workflows
• AI layers
• Customer-facing differentiation

👉 Then CargoWise becomes infrastructure, not your value

4. The key distinction (what investors look at)

There are two very different forwarders:

Forwarder A (lower EV impact)

• Uses CargoWise “out of the box”
• Standard workflows
• Minimal customization
• Relies on vendor ecosystem

➡️ Viewed as: Efficient operator, low strategic premium

Forwarder B (higher EV impact)

• Uses CargoWise as a core system
• Builds:
  • Internal AI validation layers
  • Exception management tools
  • Customer-specific workflows
• Owns process logic and data intelligence

➡️ Viewed as: Scalable platform, higher multiple

5. Bottom line

• CargoWise SaaS alone does not decrease EV
• But using it passively can

The real driver is this:

If your value sits in the software → EV leaks
If your value sits in how you use the software → EV increases