In May 2020, FedEx and Microsoft announced a multiyear partnership and revealed their first joint product: FedEx Surround, which looks to give businesses increased supply chain insight via near-real-time shipment tracking analytics.
Flash forward to the present and the collaboration has spawned another offering — because the two companies are blending their resources for a cross-platform, e-commerce-focused logistics solution.
"Nearly two years ago, we set out on a mission with Microsoft to transform the commerce ecosystem," said Raj Subramaniam, FedEx president and COO, in a press release. “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."
The two companies will integrate data insights from FedEx with Dynamics 365 Intelligent Order Management, a Microsoft offering that uses data and artificial intelligence (AI) for an omnichannel order management application.
This could help businesses better ship and service customer orders, through more cost-effective deliveries, near-real-time delivery status communications, and an easier return process that includes 60,000 drop-off location options and printer-less QR codes. Full integration of FedEx data and Dynamics 365 Intelligent Order Management is expected to come in the second half of 2022.
The announcement comes amid the e-commerce boom, which has not quieted since the start of the COVID-19 pandemic. Data from Adobe Analytics show that U.S. consumers spent a record $204.5 billion online during the holiday season, an 8.6% year-over-year increase.
The swift rise of e-commerce has also accelerated growth in the U.S. domestic package market.
According to the release, FedEx had predicted before the pandemic that it would hit 100 million packages per day by 2026. Now, it’s expected to surpass that mark this year, with 110 million daily packages.
And 86% of that growth is expected to come from e-commerce.
