FedEx acquires RouteSmart Technologies

FedEx Corp., Memphis, Tennessee, has acquired RouteSmart Technologies, a Columbia, Maryland-based route optimization solutions provider serving newspaper, postal and parcel, utilities and field service, public works and waste collection organizations worldwide.

FedEx says the acquisition of RouteSmart will allow it to drive efficiency across its global operations, while also strengthening its suite of technology solutions.

“This is yet another step on our journey to make supply chains smarter for everyone as we revolutionize logistics,” FedEx Corp. President and CEO Raj Subramaniam says. “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 optimization capability for FedEx operations that will enable our team members to work safer and smarter as they deliver superior service to our customers.”

According to FedEx, the companies expect “a seamless integration.” FedEx has been a long-standing customer of RouteSmart, using its Routing as a Service (RaaS) product in its ground operations. RaaS serves as the backbone for the internal FedEx Route Optimization (FRO) tool, the company says, which it will roll 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,” RouteSmart Technologies President Larry Levy says.

RouteSmart will continue to work with customers across a broad range of industries and will operate as a standalone entity under FedEx Dataworks, which is a direct subsidiary of FedEx Corp.