FedEx Corp.
FDX 0.30%
and freight-tracking software company FourKites Inc. are building a data platform that aims to predict shipping delays and prescribe alternative plans for their customers.
The new supply-chain intelligence platform, called FourKites X, combines data from FedEx’s network of more than 16.5 million daily shipments and FourKites’ tracking platform, which currently supports more than 2.5 million daily shipments.
“Every one of these packages is a treasure trove of data,” said Sriram Krishnasamy, chief executive of FedEx Dataworks, a unit of FedEx focused on improving supply chains through data science and machine learning.
Port congestion, staff shortages, geopolitical tensions and outbreaks of new variants of the coronavirus have all contributed to supply-chain disruptions over the past couple of years. FedEx earlier in the pandemic boosted spending to add capacity in its network to ease delivery delays.
Having a larger volume of data helps with improving predictions and visibility on delivery times, the companies said. Getting these details could help these merchants manage their costs and businesses better, said Mr. Krishnasamy.
Mathew Elenjickal says the goal of FourKites X is to create a ‘self-healing supply chain.
Photo:
FourKites
For instance, a pre-shipment weather advisory could help customers predict disruptions and find alternative modes of delivery where there is capacity. This would help reduce volatility in supply chains and provide more accurate estimated times of arrival, the companies said.
Founded in 2014, Chicago-based FourKites has worked with more than 1,000 businesses including food and beverage companies and healthcare providers, helping them track their shipments from the manufacturing plants to warehouses and stores.
As part of the partnership, FedEx has made a financial investment in FourKites, without disclosing specifics. FedEx is slated to release its latest quarterly financial report Thursday.
FourKites has previously raised more than $200 million in several funding rounds. The company is valued at more than $1 billion, said
Mathew Elenjickal,
CEO of FourKites.
Depending on each shippers’ needs, the new platform will also provide real-time visibility in different points of the supply chain such as ports, ships, planes, rail and trucks, Mr. Elenjickal said.
The goal is to create a “self-healing supply chain,” said Mr. Elenjickal, referring to a smarter supply chain that could prescribe solutions for customers when they encounter problems. The platform would also offer customers the ability to choose modes of delivery with the least impact on carbon emissions.
Write to Esther Fung at [email protected]
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