FedEx has partnered with J.P. Morgan Payments and Oracle to streamline working capital access and liquidity management through embedded financial solutions.
The strategic collaboration sees J.P. Morgan Payments’ Supply Chain Finance (SCF) integrated directly into Oracle Cloud ERP, allowing FedEx to accelerate access to working capital and support its vendors with early payment options, according to FF News.
This development reduces a typical six-month ERP customisation project to a fast, native activation process.
J.P. Morgan Payments, which processes over $10tn in payments daily across 160+ countries and 120+ currencies, offers a suite of treasury services, trade finance and card solutions. Oracle, a leader in enterprise resource planning (ERP) software, is a long-time collaborator with J.P. Morgan, providing embedded payment and liquidity tools for mutual clients. FedEx benefits from these tools to enhance its operational resilience and financial efficiency.
The collaboration enables FedEx to natively configure SCF functionality in Oracle Cloud ERP via Oracle B2B, replacing the need for bespoke development. Once an invoice is approved, FedEx’s vendors can choose between receiving early payment — financed at rates based on FedEx’s credit profile — or waiting out standard payment terms. This structure offers flexibility to both FedEx and its suppliers, boosting working capital efficiency across the supply chain.
J.P. Morgan Payments delivers SCF functionality to FedEx and others via its Integrated Trade Finance for Oracle Fusion ERP, first unveiled at Oracle CloudWorld 2024, alongside a broader roadmap of financial integrations. FedEx has also deployed a successful liquidity strategy combining Liquidity & Account Solutions (L&AS) from J.P. Morgan Payments and blockchain-based Kinexys Digital Payments to optimise notional pools in Europe and Asia Pacific.
Beyond SCF, J.P. Morgan Payments has developed multiple plug-ins for Oracle Cloud ERP, including:
The three companies’ collaboration has been in place since 2022, with Oracle integrating J.P. Morgan’s treasury tools to benefit dozens of corporate clients with enhanced connectivity and process automation.
Oracle executive vice president of applications development Rondy Ng said, “The colllaboration 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.”
J.P. Morgan Payments global co-head Umar Farooq said, “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 optimize financial performance and drive business growth.”
FedEx CVP corporate development and treasurer Trampas Gunter added, “Collaborating with J.P. Morgan Payments and Oracle to build a solution has been transformative for our working capital management. 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.”
