FedEx Corp and Microsoft Corp announced a new multiyear collaboration to help transform commerce by combining the global digital and logistics network of FedEx with the power of Microsoft’s intelligent cloud.

Together, FedEx and Microsoft aim to create opportunities for their customers through multiple joint offerings powered by Azure and Dynamics 365 that will use data and analytics solutions to reinvent the most critical aspects of the commerce experience and enable businesses to better compete in today’s increasingly digital landscape.

“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,” said Frederick W. Smith, chairman and CEO, FedEx. “Together with Microsoft, we will combine the immense power of technology with the vast scale of our infrastructure to help revolutionize commerce and create a network for what’s next for our customers.”

This new strategic alliance represents a long-term commitment between the companies to fuel innovation, collaborate on product development and share subject-matter expertise.

Today, FedEx networks link more than 99% of the world’s gross domestic product across 220 countries and territories, and Microsoft Azure is trusted by more than 95% of Fortune 500 companies. By combining the breadth and scale of the FedEx network and the Microsoft cloud, businesses will have an unprecedented level of control and insight into the global movement of goods.

“Now more than ever, organizations are counting on an efficient and capable supply chain to remain competitive and open for business,” said Satya Nadella, CEO, Microsoft.  “Together with FedEx, we will apply the power of Azure, Dynamics 365 and their AI capabilities to this urgent need, building new commerce experiences that transform logistics for our mutual customers around the world.”

Announcing FedEx Surround — driving digital illumination of the physical world

FedEx Surround, the first solution resulting from the FedEx and Microsoft collaboration, allows any business to enhance visibility into its supply chain by leveraging data to provide near-real-time analytics into shipment tracking, which will drive more precise logistics and inventory management.

While most carriers are reactive to global logistics dynamics with limited visibility options built into a package’s journey, FedEx Surround will provide near-real-time insights — down to the granular level of ZIP code, for example — to shine a digital light on the progress and movement of physical inventory.

The benefits offered by FedEx Surround will extend to any business with a supply chain and particularly those that depend on highly time-sensitive deliveries.

For example, a hospital may urgently need a package to help save a life, or a part may need rapid transport to a manufacturing facility to avoid an operational shutdown. In each instance, the near-real-time data insights provided by FedEx Surround offer a significant advantage to not only the organizations using the platform but also the people they serve.

FedEx Surround can also collect multiple data points gathered through the enhanced scanning and proprietary IoT technology of FedEx and analyze them using Microsoft’s broad suite of AI, machine learning and analytics solutions.

This will provide participating businesses with not only enhanced visibility of a package’s location during its journey, but also knowledge of global commerce conditions and external challenges in near-real-time, such as severe weather or natural disasters, mechanical delays, clearance issues, and incorrect addresses.

This unprecedented level of data-driven insight will give FedEx Surround customers the opportunity to intervene early and act to avoid logistical slowdowns before they occur to reduce friction and costs. And with every package that ships, FedEx Surround will analyze past trends to identify future opportunities for streamlined shipping, creating a stronger and more resilient commercial ecosystem.

Information regarding FedEx Surround availability will be shared beginning this summer, and customer access will be rolled out in the months ahead.

FedEx and Microsoft expect to announce additional solutions as part of their collaboration in the coming months, which will leverage even more Microsoft technologies, including Dynamics 365. This includes reimagining commerce experiences for businesses to offer consumers more integrated ways to shop, and faster and more efficient deliveries.

Menzies Distribution, the UK’s leading time-critical, national logistics partner, is supporting One Stop, the retail convenience business, by delivering food products to over 500 of its 900 UK stores.  This is in addition to the daily newspaper and magazine service, utilising its unique position working with grocers in the UK.

Following a rapid change in customer buying habits and a surge in demand during the coronavirus lock down, Menzies Distribution mobilised its delivery service for the retailer at incredible speed, helping ensure the convenience store chain can continue to provide essential supplies to its local communities.

Menzies Distribution is supplying One Stop from its National Distribution Centre in Coventry and 10 depots around the UK. From late April around 60,000 cases of product were being distributed per week.

During the ongoing Coronavirus pandemic, Menzies Distribution has prioritised the health and safety of its employees, implementing a number of robust social distancing and hygiene measures to protect the work force.

Robert Wilcock, Sales Director, Menzies Distribution stated: “Retail businesses like One Stop have faced extraordinary demand during the pandemic, but through our established distribution network and retail sector experience, we’ve been able to help them successfully meet their new supply challenges. Within 48 hours we set up and activated an enhanced delivery operation for One Stop, which is an incredible achievement. Our dedicated front line team have quickly adapted to our new social distancing, hygiene and PPE measures so we can continue to serve all customers safely.

“Menzies Distribution delivers to GPs, care homes, local businesses and direct to consumers and we’re proud to be further supporting local communities through delivering to One Stop shops, especially at such a critical time.”

Menzies Distribution has been investing in making its retail and parcel logistics business one of the leading in its sector, with a 65 depot strong distribution network across the whole of the UK and Ireland. It has warehouse capability to include outbound and return logistics and in addition, Menzies Distribution has invested in its electric vehicle fleet.

EV Cargo’s Allport Cargo Services has delivered financial and stockholding efficiencies for its customer Perfect Moment, after introducing a new online returns portal incorporating slick customs compliance.

Significantly improving the online experience for consumers, the portal removes complexity and enables purchases in multiple sizes and styles, safe in the knowledge they can be easily and efficiently returned.

Perfect Moment, a UK-based luxury ski, surf and activewear company says the streamlined solution has enhanced the online retail experience for its consumers and helped strengthen brand loyalty.

The fully branded portal links seamlessly with the Perfect Moment website, keeping the consumer within the brand experience. Each item can be individually tracked back to the ACS returns centre via a code, providing consumers with reassurance that high-value items have safely reached their destination.

The speed of the returns process including customer refunds has been immensely improved. Items are returned back into the stock inventory and available for sale online within 48 hours, enhancing product re-sell and increasing sales.

With around 60% of Perfect Moment’s returns originating from outside the EU, the portal produces customs compliant documentation to eliminate customs delays and future-proof the system ahead of UK EU trade agreements.

The portal was developed with input from EV Cargo Technology and in partnership with Intersoft – who have been shortlisted in the innovation category of UK e-commerce awards as a result. ACS is currently in discussion with other clients to deliver similar benefits around returns documentation and payments to enhance their returns process.

ACS has worked with Perfect Moment since 2017 and, as lead logistics provider, manages third-party logistics for both online fulfilment and store deliveries in addition to handling imports from global manufacturers and exports to global consumers from its Heathrow logistics centre.

Gary Ball, associate project manager at Allport Cargo Services, said: “The new online portal is a significant development from ACS to help streamline the returns process, deliver enhanced stock visibility and ultimately boost satisfaction and sales for Perfect Moment customers. We worked with Perfect Moment to develop a greater understanding around the path to purchase for their customers and the part a slick and simple returns process plays. We now have a fully-automated solution that mirrors the product and brand positioning and is capable of efficiently dealing with international returns.”

Miranda Grubb, e-commerce operations at Perfect Moment, said: “The returns portal is an excellent initiative, delivering time and efficiency savings while providing customers with greater insight into returns. Customer service support is only required when a product is outside of the returns policy period. Inbound calls requesting returns labels and updates on the status of a returned item dropped considerably, allowing us to focus on developing sales. Importantly, it’s more environmentally friendly compared to the expensive sticky label option.”