FedEx acquires RouteSmart Technologies

FedEx has acquired route optimisation company RouteSmart Technologies to drive further efficiency across its global operations.

RouteSmart Technologies has over 40 years of expertise providing mission-critical technology to newspaper, postal & parcel, public works, utilities & field service, and waste collection organisations worldwide.

The combination of RouteSmart’s leading technology solutions with FedEx’s physical and data networks will enable the world’s largest express transportation provider to further drive efficiency across its own global 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, 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 Optimisation (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 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.