FedEx Corp. recently inked a new deal with Berkshire Grey Inc. to develop expanded artificial intelligence (AI) robotic automation capabilities aimed at improving the safety and efficiency of global FedEx package handling operations.
“Our growing relationship with Berkshire Grey for robotic automation is a direct response to the growth of e-commerce, which has accelerated the demand for reliable automated solutions throughout all stages of the supply chain,” said Rebecca Yeung, corporate vice president of Operations Science and Advanced Technology at FedEx.
“FedEx believes that continued innovation and automation will improve efficiency, productivity and safety for its team members as they continue to keep the global supply chain moving,” Yeung said.
In addition to their newly signed agreement, the two companies expect to sign a master system purchase agreement this year that will streamline and expedite the procurement process for Berkshire Grey solutions across all global FedEx operating companies.
At the same time, Berkshire Grey has granted FedEx a warrant to purchase common stock that vests incrementally, subject to certain terms, including the ordering of and payment for Berkshire Grey AI-enabled robotic automation goods and services at any time prior to Dec. 31, 2025.
Full vesting of all 25 million shares will be subject to the warrant upon the ordering of or payment for at least $200 million of such goods and services, according to the warrant agreement in the Form 8-K that Berkshire Grey filed last week.
“Berkshire Grey and FedEx are strategically aligned. These new agreements reflect our mutual commitment to innovations in robotic automation that can remove barriers within the supply chain, ease the physical burden on employees, and streamline operations,” Tom Wagner, CEO of Berkshire Grey, said on Aug. 2. “We look forward to working together on this new program and to advancing other automation programs with FedEx moving forward.”
FedEx Ground and Berkshire Grey already are working jointly on deploying Berkshire Grey’s Robotic Product Sortation and Identification (RPSi) systems, which robotically sort small packages that require distribution.
In addition to the recent installations at eight sortation facilities — including Queens, N.Y., Las Vegas, and Columbus, Ohio — FedEx Ground plans to have the Berkshire Grey RPSi systems in place at select additional facilities in the network over the next 12 months, according to a statement released by the companies.