FedEx uses Microsoft Azure as a key cloud partner for its SureSmart logistics intelligence platform and FedEx Surround real-time shipment tracking product. The two companies announced a multi-year partnership in 2020 to build data-driven logistics solutions, with FedEx migrating workloads to Azure.
Why it matters: FedEx processes over 15 million shipments daily, generating enormous data volumes that require cloud-scale analytics. Azure provides FedEx with AI and machine learning tools to optimize routing, predict delays, and improve customer shipment visibility in the FedEx Surround product.
FedEx handles significant Amazon shipping volume through its Ground network while simultaneously building marketplace products to attract Amazon third-party seller volume away from Amazon Shipping. Amazon terminated its FedEx Express relationship in 2019 but has since resumed FedEx Ground usage for specific package types.
Why it matters: Amazon's e-commerce fulfillment requires diverse carrier capacity, particularly for large and heavy items that Amazon Logistics handles poorly. FedEx Ground's extensive residential coverage complements AMZL for these segments. For FedEx, Amazon is both a major customer and an existential long-term competitive threat.