FedEx and Microsoft announced a new multiyear collaboration that they said will help "transform commerce" by combining the global digital and logistics network of FedEx with Microsoft’s intelligent cloud through phase one of the partnership: FedEx Surround.
According to the companies, FedEx Surround allows any business to enhance visibility into its supply chain by leveraging data to provide near-real-time analytics into shipment tracking — down to the granular level of ZIP code, for example — to shine a digital light on the progress and movement of physical inventory.
“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,” said Frederick W. Smith, chairman and CEO of FedEx. “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 benefits offered by FedEx Surround will extend to any business with a supply chain and particularly those that depend on highly time-sensitive deliveries, the companies said. 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," the companies stated.
FedEx Surround can also collect multiple data points gathered through the enhanced scanning and proprietary Internet of Things technology of FedEx and analyze them using Microsoft’s broad suite of artificial intelligence (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," according to FedEx and Microsoft.
This new alliance represents a long-term commitment between the companies.
“Now more than ever, organizations are counting on an efficient and capable supply chain to remain competitive and open for business,” said Satya Nadella, CEO of Microsoft. “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.”
