Delivery company FedEx has announced that it has acquired RouteSmart Technologies, a provider of route optimisation solutions.
FedEx has said that the combination of RouteSmart’s technology solutions with FedEx’s existing physical and data networks will enable it to ‘further drive efficiency across its own global operations, whilst also strengthening the company’s suite of technology solutions’.
Raj Subramaniam, FedEx Corporation’s president and CEO, commented: “This is yet another step on our journey to make supply chains smarter for everyone as we revolutionise logistics.”
He continued: “Our physical network generates terabytes of data that contain invaluable insights about the global supply chain.
“Through this acquisition, we will use RouteSmart’s expertise and proven technology platform to accelerate the deployment of a common route optimisation capability for FedEx operations that will enable our team members to work safer and smarter as they deliver superior service to our customers.”
This is not the first time these two firms have collaborated, with FedEx having been a longstanding customer of RouteSmart, using its routing-as-a-service (RaaS) product in its ground operations for several years. RaaS, FedEx says, serves as the backbone for the internal FedEx Route Optimization (FRO) tool, which the company is rolling out globally as part of its ongoing network transformation.
Larry Levy, president of RouteSmart Technologies, shared his enthusiasm about the takeover: “We are excited to tighten our strategic relationship with FedEx as we further drive efficiency throughout FedEx’s global operations and accelerate our solutions for all clients we serve.”
FedEx has confirmed that RouteSmart will ‘continue to work with customers across a broad range of industries’. Headquartered in Columbia, Maryland, RouteSmart will operate as a standalone entity under FedEx Dataworks, which is a direct subsidiary of Federal Express Corporation.
