FedEx and Microsoft announce new cross-platform logistics solution for e-commerce
New offering aimed at increasing merchant competitiveness in the e-commerce space by improving customer engagement and providing enhanced shipping options
MEMPHIS, Tenn., and REDMOND, Wash. — Jan. 24, 2022 — FedEx Corp. (NYSE: FDX) and Microsoft Corp. (Nasdaq: MSFT) announced today the next solution as part of their multiyear collaboration to transform commerce, supply chains and logistics. FedEx and Microsoft will bring together FedEx network intelligence with capabilities from Microsoft Dynamics 365 to introduce a cross-platform “logistics as a service” for retailers, merchants and brands.
The companies share a vision for reimagining commerce experiences for businesses so they can offer their consumers more integrated ways to shop, and faster, more efficient deliveries. In today’s world of just-in-time supply chains, global trade and accelerated e-commerce growth, speed, flexibility and visibility are critical. Customer needs and expectations have shifted across every industry. Together, FedEx and Microsoft are using tools like artificial intelligence and machine learning to extrapolate new insights from the 17 million packages that pass through the FedEx network each day to help brands deliver improved customer experiences.
Cross-platform, logistics as a service solution for brands
The companies announced plans to introduce a unique data integration coupling data insights from FedEx with Dynamics 365 Intelligent Order Management to help brands access new information and capabilities to better fulfill, ship and service customer orders while easily integrating with their existing e-commerce platforms. This cross-platform approach helps brands deliver modern, high-value experiences directly to their customers including faster, more cost-effective delivery; near real-time delivery status communications; and convenient, frictionless returns with approximately 60,000 drop-off locations and printerless QR codes. For brands facing increased pressure to build affinity while managing higher order volumes, ensuring cost-effective fulfilment and reducing costly customer service calls, this new technology brings unprecedented opportunity to leverage existing systems of record, optimize fulfillment and deliver on their order promises with increased precision, while benefiting from a more complete view of their customer.
“Nearly two years ago we set out on a mission with Microsoft to transform the commerce ecosystem,” said Raj Subramaniam, president and COO of FedEx Corp. “In that time, we’ve made significant progress, leveraging Microsoft Azure technology with our FedEx Surround solution, which provides critical support in enabling advanced monitoring of time-sensitive priority shipments. This next phase of our collaboration will continue to connect the unmatched supply chain insights from the FedEx network with the Microsoft Cloud to improve e-commerce experiences for brands, merchants and consumers.”
Dynamics 365 Intelligent Order Management uses data and AI to create an omnichannel order management application that integrates with existing enterprise resource planning (ERP) and customer relationship management (CRM) systems and can leverage an ecosystem of other order source systems such as online e-commerce marketplaces, mobile apps and social commerce alongside traditional ordering channels like electronic data interchange (EDI) or brick and mortar point-of-sale. The platform is equipped with prebuilt connectors to the leading tools brands already use for omnichannel order intake, cross-channel order fulfillment and delivery, and rules-based order orchestration actions within a low-code/no-code environment that uses AI and machine learning. Coupled with data and visibility into the FedEx network, the companies aim to empower businesses with new, innovative ways to better serve their customers.
“More than ever, it’s clear just how critical having a resilient supply chain is for every organization’s success in the modern economy,” said Satya Nadella, chairman and CEO, Microsoft. “We’re bringing data and insights from the FedEx network together with the Microsoft Cloud, starting with Dynamics 365, to help organizations accelerate their digital transformation across their business operations so they can offer customers more integrated ways to shop, and faster, more efficient deliveries.”
Empowering all industries with increased logistics supply chain visibility
FedEx and Microsoft joined forces in May 2020 to enable businesses to better compete in today’s increasingly digital commerce ecosystem. The pandemic has dramatically accelerated e-commerce adoption and the digital transformations of business of all sizes. Pre-pandemic, FedEx projected that the U.S. domestic package market would hit 100 million packages per day by calendar year 2026. The market is now expected to hit this mark four years sooner than expected, growing to 110 million packages a day in 2022 — with 86% of that growth expected to come from e-commerce.
FedEx Surround, the first FedEx customer-facing solution built using Microsoft Azure cloud technology, is a testament to the collaboration’s innovative potential and immediate impact on how data is used in logistics. Built to leverage the millions of data points across the FedEx network, the FedEx Surround platform leverages AI, machine learning and analytics solutions to proactively monitor the risk to FedEx packages along a delivery route — such as weather disruptions or traffic delays. This near real-time information provides customers with visibility to the state of their supply chain and allows them to proactively plan remediation and alternatives that FedEx can help execute to keep a shipment on track.
FedEx Surround was deployed in December 2020 and has been instrumental in supporting COVID-19 vaccine transportation. The platform enabled FedEx to manage monitoring this significant increase in priority shipment volume.
Seamless FedEx data integration with Dynamics 365 Intelligent Order Management is expected to be available to customers in the U.S. in the second half of 2022.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $90 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 600,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit about.fedex.com.
Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.
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Certain statements in this press release may be considered forward-looking statements, such as statements relating to FedEx and Microsoft managements’ views with respect to future events and financial performance. Forward-looking statements include those preceded by, followed by or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends” or similar expressions. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the rate of future e-commerce growth and our ability to successfully compete in the e-commerce market, our ability to successfully introduce e-commerce solutions in the expected time frame, customer acceptance of the FedEx Surround platform and other factors which can be found in FedEx Corp.’s and Microsoft’s respective press releases and filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. FedEx and Microsoft do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.