Logistics

FedEx, Microsoft collab on new “logistics-as-a-service” offering for retailers

FedEx predicts an average of 110 million packages will be delivered in the US every day this year.
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Francis Scialabba

· less than 3 min read

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FedEx and Microsoft are in ship-shop shape.

The two companies announced a “cross-platform ‘logistics-as-a-service’” offering for brands, retailers, and merchants yesterday, that will give consumers more shopping options and help ensure their packages are delivered on time.

  • The service allows brands to better fulfill, ship, and service orders, since it will be streamlined into retailers’ existing e-comm platforms.
  • It’ll also come with real-time delivery status updates and frictionless returns at 60,000 dropoff locations (via digital QR codes).

The big number: With more deliveries, more efficiencies must follow. FedEx expects an average of 110 million packages will be delivered in the US every day this year, or 40+ billion in all for 2022. A whopping 86% of that growth is projected to come from e-comm transactions.

Team players: This isn’t the first time the two companies have collabed. In 2020, FedEx introduced FedEx Surround, its first customer-facing solution, which provides real-time analytics on shipment tracking—and was built using Microsoft’s cloud tech. Yesterday’s announcement builds on the partnership and aims to provide companies with more insight into the supply chain to improve the entire shopping experience.

“More than ever, it’s clear just how critical having a resilient supply chain is for every organization’s success in the modern economy,” noted Microsoft CEO Satya Nadella in a joint statement.—KM

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