FedEx and Microsoft announced a new multi-year collaboration to help transform trade by combining FedEx's digital and logistics network with Microsoft's cloud systems.

The companies said they will create multiple joint offerings supported by the Azure and Dynamics 365 platforms, which will use data and analytics solutions.

“FedEx has been reimagining the supply chain since our first day of operation, and we are taking it to a new level with today’s announcement,” said Frederick W. Smith, chairman and CEO, FedEx.

“Together with Microsoft, we will combine the immense power of technology with the vast scale of our infrastructure to help revolutionize commerce and create a network for what’s next for our customers.”

The agreement represents a long term commitment to drive innovation, collaborate on product development and share subject matter expertise.

FedEx networks link more than 99% of the world’s gross domestic product across 220 countries and territories, while Microsoft Azure is trusted by more than 95% of Fortune 500 companies. 

The companies stated they intend to "reinvent the end-to-end commerce experience globally".

The companies' first joint solution is named 'FedEx Surround' and allows any business to leverage near real-time analytics into shipment tracking to enhance visibility.

 "While most carriers are reactive to global logistics dynamics with limited visibility options built into a package’s journey, FedEx Surround will provide near-real-time insights — down to the granular level of ZIP code, for example — to shine a digital light on the progress and movement of physical inventory," it added.