How J.P. Morgan is Transforming FedEx's Working Capital

J.P. Morgan is unveiling a partnership with Oracle to release its Supply Chain Finance (SCF) solution as a means to optimise working capital. 

The SCF solution relies on Oracle Fusion Cloud Enterprise Resource Planning (ERP) to boost efficiency and productivity.

FedEx has already began using the new solution and is seeing the benefits immediately. 

Innovative solutions to increase efficiency

J.P. Morgan is solidifying itself as a trusted leader in banking and markets and as a company eager to adapt to modern technology.

The company has repeatedly shown its commitment to delivering cutting-edge financial solutions, especially when it benefits the client.

J.P. Morgan is used by start-ups, companies, governments and institutions around the world, with clients in more than 100 countries. With this much demand, the finance corporation needs to stay ahead of competitors and solidify itself as a global leader.

One way its doing that is through its SCF solution, making it easier than ever for clients to set up financing with the company. 

FedEx has already implemented the solution into its system and is seeing reduced solution application time and increased vendor payment flexibility. 

Umar Farooq, Global Co-Head at J.P. Morgan Payments says: "We are thrilled to team up with FedEx to enhance working capital and boost liquidity management.

"By integrating our payment solutions with strong ERP relationships, we are demonstrating our commitment to collaboration and innovation, helping clients optimise financial performance and drive business growth.”

Optimal results for FedEx

The partnership between FedEx, J.P. Morgan and Oracle has resulted in a new feature using SCF functionality directly in the Oracle Cloud ERP, which has allowed FedEx to apply these models directly into its system.

Rather than having to create a custom solution, which can take six months to design, FedEx has natively configured the SCF solution into its system.

This has reduced its waiting time significantly, simplifying a setup process and boosted efficiency.

Now, FedEx can experience working capital flexibility, whilst also offering flexibility to its vendors.

Through this new solution, vendors can opt for an early payment option once FedEx has approved an invoice.

The vendor can wait for payment on extended terms or, through J.P. Morgan Payments, receive their funds early, which has major benefits particularly for smaller businesses. 

"Collaborating with J.P. Morgan Payments and Oracle to build a solution has been transformative for our working capital management,” adds Trampas Gunter, CVP Corporate Development and Treasurer at FedEx.

“Leveraging J.P. Morgan Payments' SCF and liquidity solutions in a way that is tailored to our business has strengthened our financial position and enhanced our operational resilience, ultimately benefiting our customers and shareholders."

Perfect partnerships

The SCF functionality solution is delivered to clients, including FedEx, through the Integrated Trade Finance for Oracle Fusion ERP. 

FedEx has used a range of J.P. Morgan solutions to enhance its supply chain efficiency, including Kinexys and Liquidity & Account Solutions (L&AS). 

The implementation of SCF marks another strong move in their partnership.

Since 2022, Oracle and J.P. Morgan have collaborated to enhance supply chain productivity, implementing end-to-end connectivity and automated processes. 

Their collaborations include:

• Integrated Banking for real-time banking data access, streamlined payments and fast onboarding
• Touchless Expenses for quicker reimbursements with AU-driven expense submission
•  Integrated Virtual Card which delivers straight-through processing to eliminate manual card terminal entry, thus optimising B2B invoice payments

Rondy Ng, Executive Vice President of Applications Development at Oracle, comments: “The collaboration between Oracle and J.P. Morgan Payments is transforming how our joint customers unlock new banking and working capital solutions through turnkey activation and embedded AI services within Oracle Cloud ERP. 

"With our joint multi-year continuous innovations in Oracle B2B with J.P. Morgan Payments, we empower businesses to achieve near touchless payment transactions and agile and resilient financial operations for a dynamic economy."

This Supply Chain Finance solution will transform companies around the world, rejuvenating their financial supply chains and their productivity.