What you need to know
- Microsoft and FedEx outlined the next steps for their ongoing collaboration to "transform commerce."
- The companies will use FedEx network intelligence and Microsoft Dynamics 365 to improve delivery efficiency and communication.
- Digital commerce shipments have increased dramatically during the global pandemic.
Microsoft and FedEx announced the next phase of their plan to "transform commerce" with technology. FedEx network intelligence will be brought together with Microsoft Dynamics 365 to create a "logistics as a service" for brands, merchants, and retailers. This combination should improve the efficiency of package delivery and enhance real-time communication regarding delivery status.
Microsoft has worked with FedEx for several years. The companies announced a partnership in 2020 with a stated goal to "transform commerce." Today's announcement continues that partnership and expands it with a new range of technologies.
"Nearly two years ago we set out on a mission with Microsoft to transform the commerce ecosystem," said president and COO of FedEx, Raj Subramaniam.
"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."
Microsoft's Dynamics 365 Intelligent Order Management is expected to integrate with FedEx data in the second half of 2022.
Microsoft CEO Satya Nadella also shared thoughts on the continued partnership. "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 Nadella.
"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."
Digital commerce shipments have skyrocketed during the pandemic. Before the pandemic, FedEx predicted that U.S. domestic package shipments would reach 100 million per day by 2026. Now, forecasts state that 110 million of these packages will be sent each day by the end of 2022. Of that increase, 86% is expected to come from e-commerce.
