FedEx Corp has acquired RouteSmart Technologies for an undisclosed sum in line with work to strengthen global pickup and delivery optimisation.
FedEx will combine RouteSmart’s technology solutions with its own physical and data networks to further drive efficiency across its own global operations, while also strengthening the company’s suite of technology solutions.
RouteSmart Technologies is a global leader in route optimisation solutions with over 40 years of expertise, providing mission-critical technology to newspaper, postal & parcel, public works, utilities & field service, and waste collection organisations worldwide.
The business, which is headquartered in Columbia, Maryland, will operate as a standalone entity under FedEx Dataworks, which is a direct subsidiary of Federal Express Corporation, and will continue to work with customers across a broad range of industries.
Raj Subramaniam, president and chief executive officer, FedEx Corporation, said: “This is yet another step on our journey to make supply chains smarter for everyone as we revolutionise logistics.
“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.”
FedEx has already been using RouteSmart’s Routing as a Service (RaaS) product in its ground operations for many years. RaaS provides the basis 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, RouteSmart Technologies, said: “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.”
