FedEx invests in FourKites to build intelligent supply chain platform

FedEx Corp. (NYSE: FDX) and Chicago-based supply chain visibility provider FourKites have partnered to build a global supply chain intelligence platform, the companies announced Tuesday. Under the agreement, FedEx has invested an undisclosed amount in FourKites.

The new platform, FourKites X, will aim to help large shippers and logistics providers with features like dynamic planning, real-time visibility, proactive alerts and supply chain optimization insights. FourKites customers will be able to integrate the platform with their existing systems.

“Our organizations share an unwavering commitment to customer success through strategic innovation,” said Mathew Elenjickal, founder and CEO of FourKites. “Together, we are working to pave the future of global supply chains, built on a foundation of data and machine learning to deliver new value to those global supply chains.”

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FourKites X will combine the machine learning and AI capabilities of FourKites with data insights from the FedEx network, which spans 220 countries and territories and moves 16.5 million shipments every day. The combined network will be wrapped up in a suite of pre-built applications and an intuitive dashboard to provide more accurate ETAs and deeper insights.

“If the last two years have taught us anything, it’s that companies need to work together in order to work smarter and faster,” said Sriram Krishnasamy, CEO of FedEx Dataworks, the business unit of FedEx that will support FourKites under the agreement. “Our collaboration with FourKites creates a data ecosystem that will deliver a new level of predictability and visibility to help businesses build smarter supply chains in today’s unpredictable and complex business environment.”

FourKites and FedEx cited an array of global disruptions as the catalyst for the partnership, namely port congestion, ongoing geopolitical issues and the COVID-19 pandemic. Those factors and others have contributed to a supply chain bullwhip that’s left retailers with their hands full after enduring months of inventory shortages.

Watch: FourKites View of Supply Chain Slow Down

As it stands, FourKites’ network tracks around 2.5 million shipments per day and connects the supply chains of half of the Fortune 500 list. Joining with FedEx, whose own network links 99% of the world’s GDP, is betting that more data can be the remedy to disruptions creating the supply chain bullwhip.

“When it comes to supply chain data, more is always better. The collaboration between FourKites and FedEx is exceptional in both the volume of data that it will aggregate and in the degree to which it could improve predicted times of arrival, planning and more,” said Steve Banker, vice president of supply chain services at ARC Advisory Group. “FourKites X can be a big step forward for this market.”

FourKites did not immediately respond to FreightWaves’ request for comment.

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Source: freightwaves - FedEx invests in FourKites to build intelligent supply chain platform
Editor: Jack Daleo