US Army enlists FedEx to modernize logistics at depots

FedEx Corp. has made clear that its future lies with premium B2B logistics services in key industrial verticals that require precision execution, such as automotive, healthcare, aerospace and data centers — not cheap last-mile delivery for online retailers. Add the defense sector to the list of industries the freight transportation giant is targeting for high-margin growth opportunities.

In August, FedEx Dataworks (NYSE: FDX) undertook a sweeping modernization of the U.S. Army’s domestic non-tactical logistics network, supply chain procedures and 23 government-owned and operated industrial facilities that make, repair, overhaul and store military equipment and munitions.

Dataworks is a division that uses analytics, artificial intelligence and digital technology to turn supply chain visibility into actionable intelligence. The real-time data platform harnesses huge amounts of operational signals gathered from millions of parcel and freight shipments to help businesses spot emerging risks early and coordinate responses before they can cause disruptions, optimize shipping routes, improve package tracking and provide supply chain insights. Its capabilities are designed to integrate with a customer’s existing tools and workflows. Dataworks recently began helping Stripe Capital explore how supply chain intelligence could open opportunities for small-and medium businesses to secure financing.

Management has repeatedly said it wants to leverage the company’s two petabytes of data and advanced AI capabilities to better support customers and drive new lines of revenue.

This story was originally published by FreightWaves. Read the full story at FreightWaves →