FedEx and Microsoft plan to launch a multi-year collaboration to boost commerce by integrating cloud technology with logistics network, media reports said. This initiative is expected to launch this summer.
The initiative will be known as FedEx Surround. It is reported that FedEx could become a logistics competitor to Amazon with the launch of this initiative.
Frederick W. Smith, chairman and CEO at FedEx, said in a statement, “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.”
Both companies have decided to build an alliance to transform commerce. According to FedEx, the initiative will enable businesses to receive real-time tracking of shipment. FedEx Surround seeks to offer solutions to businesses with supply chain, in addition to those that largely depend on time-sensitive deliveries.
The proposed initiative is a boost to the logistics industry worldwide, especially on the back of the Covid-19 pandemic. It will support ecommerce infrastructure built during pre-pandemic times and enable it to transform in a post-pandemic world.
“Together with Microsoft, we will combine the immense power of technology with the vast scale of our infrastructure to help revolutionise commerce and create a network for what’s next for our customers,” Smith said in a statement.
It appears that FedEx was forced to limit the number of deliveries from a broad range of retailers because of the ongoing crisis. However, FedEx Surround is anticipated to improve logistics capacity, build transparency, and facilitate better services for businesses.