FedEx buys RouteSmart Technologies

FedEx has acquired route optimisation solutions provider RouteSmart Technologies for an undisclosed sum.

RouteSmart Technologies provides technology to newspaper, postal and parcel, public works, utilities and field service, and waste collection companies worldwide. 

The combination of RouteSmart’s leading technology solutions with FedEx’s physical and data networks aims to enable the transportation provider to drive efficiencies across its operations, while also strengthening the company’s suite of technology solutions.

“This is yet another step on our journey to make supply chains smarter for everyone as we revolutionise logistics,” said Raj Subramaniam, president and chief executive officer at FedEx Corporation. 

“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 been a long-standing customer of RouteSmart, using its Routing as a Service (RaaS) product in its ground operations for many years. 

RaaS 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.

“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,” said Larry Levy, president, RouteSmart Technologies.

RouteSmart will operate as a standalone entity under FedEx Dataworks, which is a direct subsidiary of Federal Express Corporation.