FedEx Corporation and Microsoft Corporation on Monday announced the next solution in their multi-year collaboration to transform commerce, supply chains, and logistics.

In a joint statement, the companies said they will join FedEx’s network intelligence with capabilities from Microsoft’s Dynamics 365 to introduce cross-platform logistics as a service for retailers, merchants and brands.

Together, they will use tools like artificial intelligence and machine learning to gather new insights from the 17 million packages that pass through the FedEx network each day to help brands deliver improved customer experiences, the companies said.

According to them, this cross-platform approach enables brands to provide modern, high-value experiences to their customers, such as faster, more cost-effective delivery; near real time delivery status communications; and convenient, frictionless returns with approximately 60,000 drop-off locations and printerless QR codes.

Dynamics 365 Intelligent Order Management uses data and artificial intelligence to create an omnichannel order management application that integrates with existing enterprise resource planning and customer relationship management systems. Omnichannel refers to a multichannel approach to sales that focuses on providing a seamless customer experience, whether the client is shopping online from a mobile device, a laptop or in a brick and mortar store.

Coupled with data and visibility into the FedEx network, the companies aim to empower businesses with new and innovative ways to better serve their customers.

The companies share a vision for reimagining business commerce experiences. In May 2020 they forged a partnership to help businesses compete in today’s increasingly digital commerce ecosystem.

FedEx Corp President and CEO Raj Subramaniam said, “In that time, we’ve made significant progress, leveraging Microsoft Azure technology with our FedEx Surround solution, which provides critical support in enabling advanced monitoring of time-sensitive priority shipments.”

Meanwhile, Microsoft Chairman and CEO Satya Nadella added that more than ever, it’s clear just how critical having a resilient supply chain is for every organisation’s success in the modern economy.

“We’re bringing data and insights from the FedEx network together with the Microsoft Cloud, starting with Dynamics 365, to help organisations accelerate their digital transformation across their business operations so they can offer customers more integrated ways to shop, and faster, more efficient deliveries,” he said.

The pandemic has dramatically accelerated e-commerce adoption and the digital transformation of businesses of all sizes. Pre-pandemic, FedEx projected that the US domestic package market would hit 100 million packages per day by 2026. The market is now expected to hit this mark four years sooner than expected, growing to 110 million packages a day in 2022 — with 86 per cent of that growth expected to come from e-commerce.