On 18th May 2020, what we saw is FedEx and Microsoft join forces as they attempt to transform commerce by introducing to the world FedEx Surround. This solution will allow any business to enhance clarity and robustness into its supply chain by leveraging the power of data to provide near-real-time #analytics into shipment tracking. This will drive more precise logistics and inventory management.
It is estimated that FedEx links more than 99% of the world’s gross domestic product network across the globe, and more than 95% of Global #Fortune500 companies trust Microsoft.
As customer expectations are continuing to rise, with less tolerance for glitches of any kind, this platform will be a great rescue to the companies. This unparalleled level of data-driven insight will allow businesses to intervene and act early to avoid logistical slowdowns and reduce costs and become more resilient. #Coronavirus has given businesses a grave problem focused on remaining open and competitive. In these critical times, having an efficient and capable supply chain is critical.
FedEx Surround will combine the enormous power of technology with the large scale of infrastructure to help transform logistics and supply chain and create a network for businesses. The system will be driven by #Dynamics365 and #Azure that will use data, artificial intelligence, neural networks, and analytics solutions to rediscover the most critical aspects of the logistics and supply chain experience.
FedEx Surround will provide near-real-time insights - down to the local level of ZIP code, for example - customers will be provided with early warnings of delays from weather, traffic, and other mishaps.
FedEx Surround will roll out broadly after a pilot program this summer and won’t be costing customers anything extra.
The benefits offered by FedEx Surround will cover any business with a supply chain and will be particularly helpful to those that depend on highly time-sensitive deliveries. Let’s take a case in which a hospital urgently needs a package to help save a life. In this instance, the near-real-time data insights provided by FedEx Surround will offer a significant advantage by giving early warnings and rerouting the package so that it reaches the customer on time.
However, FedEx and Microsoft haven’t yet given any indication of the underlying financial terms of their partnership. FedEx and Microsoft shares were up more than 7% and 1% respectively post the announcement.
Microsoft Azure is the second most preferred public cloud platform after Amazon Web Services. Microsoft’s Dynamics 365 competes with Salesforce and other business software platforms available by other giants. For Microsoft, this partnership could help narrow the gap with Amazon.
Amazon and FedEx have also been gradually very competitive with each other as Amazon invests heavily in building out its shipping network. Last year, FedEx ended all kinds of ground and air shipping deals as Amazon expanded its delivery capabilities. Amazon still gives FedEx plenty of business, but there have been indications in the market that Amazon will eventually ship everything itself without the help of third parties.
This all sounds like a hefty goal, isn’t it—redefining and transforming logistics and supply chain? But the combination of FedEx and Microsoft might very well be able to pull it off. The partnership is just showcasing the world, yet another example of Amazon rivals choosing to go ahead with Microsoft’s cloud technology over the Amazon Web Services (AWS).
However, having said all this, the product will need to prove its mettle in the market and how it is different, better, and cost-reduction element to business. Only time will prove if this stands out as a revolution or merely just a “catch-up” game.
Reference - https://news.microsoft.com/2020/05/18/fedex-and-microsoft-join-forces-to-transform-commerce/
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