Fedex, Microsoft team up
Multiyear collaboration to boost customers’ control, insight into movement of goods.
“So if you’ve got five pieces of inventory in Ohio and it’s not selling, you will know that inventory is selling in the Bay Area or (Los Angeles) and can move the merchandise there and have a much more efficient and high-turn sales and fulfillment process.”
Fedex and Microsoft are teaming up to provide a range of data-driven business services, combining Fedex’s massive logistics network with Microsoft’s cloud computing technology, the industry titans announced Monday.
The multiyear collaboration will help
Fedex and Microsoft customers gain better control and insight into the movement of their goods across the globe using data and analytics, according to a news release from the two Fortune 50 companies.
“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 Fedex
Chairman and CEO Fred Smith in a statement. “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 news release said the collabora
tion between Fedex and Microsoft represents a longterm commitment between the companies to collaborate on product development and share expertise.
“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, in a statement. “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.”
Azure is Microsoft’s cloud computing service, which allows customers to store data online with Microsoft. Dynamics 365 provides a suite of data-driven business services.
Fedex Surround first piece of collaboration
Fedex Surround is the first service formed from the collaboration. It will let customers see their inventory activity and what is happening around their business at the global, regional and local levels, said Smith in a video discussion with Nadella.
“So if you’ve got five pieces of inventory in Ohio and it’s not selling, you will know that inventory is selling in the Bay Area or (Los Angeles) and can move the merchandise there and have a much more efficient and high-turn sales and fulfillment process,” Smith said.
There is “a lot of guesswork” for businesses surrounding sales and inventory, Smith said, so more precise information provided by Fedex Surround can help businesses manage their stock of products more effectively.
“It’s really applicable to anybody that has a product, whether it’s health care, medicine, fashion, sporting goods, whatever the case may be,” Smith said.
The news release said businesses can use Fedex Surround for near-real-time analytics into shipment tracking, providing more visibility around a package’s journey, even down to its ZIP code location.
Businesses using Fedex Surround will also have knowledge of “severe weather or natural disasters, mechanical delays, clearance issues, and incorrect addresses” via Fedex and Microsoft’s technologies.
“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,” the release said. “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.”
Customer access for Fedex Surround “will be rolled out in the months ahead,” with availability information being shared in the summer. Fedex Surround is best suited for time-sensitive deliveries that need to be tracked closely, per the release.
Fedex and Microsoft expect to announce more services in the coming months, such as “more integrated ways to shop” and “faster and more efficient deliveries,” that involve additional Microsoft technologies.
Max Garland covers Fedex, logistics and health care for The Commercial Appeal. Reach him at max.garland@commercialappeal.com or 901-5292651 and on Twitter @Maxgarlandtypes.