Supply Chain Quarterly: FedEx and Microsoft Team Up to Develop “Logistics as a Service” Product

Jan 27, 2022

(Image Source: Supply Chain Quarterly)

In keeping up with the relentless growth of e-commerce, retailers are on a constant lookout for bigger, better solutions. Understanding this urgent need, FedEx has partnered with software giant Microsoft to introduce a new offering to the market. The deal comes shortly after the confirmation of collaboration between two other logistics giants, JD.com and Shopify.

As part of the plan, the Tennessee-based logistics provider will integrate its parcel network intelligence with Microsoft Dynamics 365. It is believed that the combination of enterprise resource planning (ERP) and customer relationship management (CRM) applications will result in a “logistics as a service” product that will elevate commerce experiences for both businesses and consumers.

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Using artificial intelligence and machine learning tools, the partners will extract data from over 17 million packages handled by FedEx. In addition to deepening the relationship between the two companies, this initiative helps create more cost-effective and frictionless delivery solutions. “More than ever, it’s clear just how critical having a resilient supply chain is for every organization’s success in the modern economy. 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,” said Satya Nadella, Chairman and CEO of Microsoft.

Source: FedEx extends Microsoft partnership to build “logistics as a service” product

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