FedEx Corp has entered into a multi-year agreement with Microsoft in an attempt to enhance its global logistics network through digital initiatives. FedEx and Microsoft aim to create opportunities for their customers through offerings powered by Azure and Dynamics 365 coupled with data and analytics solution.

This collaboration could offer great mileage to FedEx as this could help them to transform commerce by combining its global digital and logistics network with Microsoft’s cloud platform. With the combined potential of Fedex’s network and Microsoft’s digital prowess, businesses can gain an unprecedented level of control and insight into the global transportation of goods and freight.

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

Experts say that this deal aligns the two corporate giants against a common rival, Amazon, which is increasingly leveraging its technology prowess as it builds out its own delivery and logistics infrastructure.

FedEx announced the first service from the partnership, FedEx Surround, which the companies say will let businesses track the movement and location of packages down to the level of ZIP codes in near real-time. The system will use data collected from FedEx scanners and IoT devices, with data analysis from Microsoft’s AI, machine learning and business intelligence technologies.