FedEx is best known as a delivery and logistics company, but with its data footprint and use of AI it’s starting to resemble a technology firm.
On FedEx's second quarter earnings call, President and CEO Rajesh Subramaniam outlined how the company's digital transformation efforts have helped the company execute better. Those technology, data and AI efforts are also likely to lead to new products.
"The reality is that AI is becoming an integral part of all business functions," said Subramaniam, who said FedEx is working to provide its employees with AI knowhow in multiple areas. "We continue to explore new approaches that leverage our real-world operational data platform. We are actively pursuing opportunities to bring digital solutions to the market, starting with logistics intelligence insights."
Subramaniam said a recent partnership with ServiceNow highlights where FedEx is going. Under a partnership announced Oct. 29, FedEx said it will combine its Dataworks platform with ServiceNow to anticipate supply chain disruptions. FedEx Dataworks will also integrate with ServiceNow's procurement applications to provide supply chain performance intelligence and provide insights.
"Through this collaboration, we are giving businesses a single system that anticipates, adapts and acts before they experience supply chain disruptions. And by integrating into ServiceNow's procurement and supply chain solutions, we are beginning to monetize the proprietary insights that only FedEx can provide. Enterprises need access to real-world logistics intelligence to power their AI systems and workflows and this partnership demonstrates market demand for what we have built," said Subramaniam.
The ServiceNow-FedEx platform integrations will start rolling out in the first quarter of 2026.
The FedEx-ServiceNow partnership highlights how companies with strong industry knowledge and datasets can leverage AI to spin up new products. In the FedEx case, data products and software platforms will have much higher margins that the logistics network that is heavy on the capital expenditures yet provides the data that'll create new services.
Other areas where FedEx is spinning up new data-driven products and services:
Data center logistics. Brie Carere, Executive VP & Chief Customer Officer at FedEx, said the company is creating a team focused on data center infrastructure. FedEx is developing vertical strategies in tech as well as automotive and healthcare. The data angle is getting goods to the right place at the right time at scale.
Shipment communications platforms. Carere said: "We are very pleased with how our digital tools are supporting revenue growth while creating better outcomes for our customers and their customers."
She added:
"Wayfair is a great example of how we're using these tools to help our customers improve their shipment-related communications and support their customer service teams. By using our premium integrated visibility tool, Wayfair is increasing their Net Promoter Score, reducing where is my order calls, otherwise known as WISMO calls and decreasing outages with their tracking data."
