Microsoft, FedEx partner to assist businesses compete digitally
Microsoft has partnered with FedEx in a move that seeks to tap into the digital and logistics network of FedEx and the Microsoft’s intelligent cloud as the two companies mulls assisting businesses compete in the digital space.
Frederick W. Smith, Chairman and CEO, FedEx: “FedEx has been reimagining the supply chain since our first day of operation, and we are taking it to a new level with today’s announcement. Together with Microsoft, we will combine the immense power of technology with the vast scale of our infrastructure to help revolutionize commerce and create a network for what’s next for our customers.”
The latest collaboration is a show of commitment between the companies to fuel innovation, collaborate on product development and share subject-matter expertise.
At the moment FedEx networks link more than 99 per cent of the world’s gross domestic product across 220 countries and territories, and Microsoft Azure is trusted by more than 95% of Fortune 500 companies.
By combining the breadth and scale of the FedEx network and the Microsoft cloud, businesses will have an unprecedented level of control and insight into the global movement of goods.
Satya Nadella, CEO, Microsoft: “Now more than ever, organizations are counting on an efficient and capable supply chain to remain competitive and open for business. Together with FedEx, we will apply the power of Azure, Dynamics 365 and their AI capabilities to this urgent need, building new commerce experiences that transform logistics for our mutual customers around the world.”
FedEx Surround, the first solution resulting from the FedEx and Microsoft collaboration, allows any business to enhance visibility into its supply chain by leveraging data to provide near-real-time analytics into shipment tracking, which will drive more precise logistics and inventory management.
While most carriers are reactive to global logistics dynamics with limited visibility options built into a package’s journey, FedEx Surround will provide near-real-time insights, down to the granular level of ZIP code, for example, to shine a digital light on the progress and movement of physical inventory.
The benefits offered by FedEx Surround will extend to any business with a supply chain and particularly those that depend on highly time-sensitive deliveries.
For example, a hospital may urgently need a package to help save a life, or a part may need rapid transport to a manufacturing facility to avoid an operational shutdown. In each instance, the near-real-time data insights provided by FedEx Surround offer a significant advantage to not only the organizations using the platform but also the people they serve.
FedEx Surround can also collect multiple data points gathered through the enhanced scanning and proprietary IoT technology of FedEx and analyze them using Microsoft’s broad suite of AI, machine learning and analytics solutions.
This will provide participating businesses with not only enhanced visibility of a package’s location during its journey, but also knowledge of global commerce conditions and external challenges in near-real-time, such as severe weather or natural disasters, mechanical delays, clearance issues, and incorrect addresses.
This unprecedented level of data-driven insight will give FedEx Surround customers the opportunity to intervene early and act to avoid logistical slowdowns before they occur to reduce friction and costs.
And with every package that ships, FedEx Surround will analyze past trends to identify future opportunities for streamlined shipping, creating a stronger and more resilient commercial ecosystem.
Information regarding FedEx Surround availability will be shared beginning this summer, and customer access will be rolled out in the months ahead.
In line with the continued partnership, the two companies are expected to reveal new solutions in coming months which will leverage even more Microsoft technologies, including Dynamics 365.
This includes reimagining commerce experiences for businesses to offer consumers more integrated ways to shop, and faster and more efficient deliveries.