Ryder System [NYSE:R]: Escorting Till the End of Supply Chain Labyrinth

Ryder System [NYSE:R]: Escorting Till the End of Supply Chain Labyrinth

CIO VendorRobert Sanchez, Chairman and CEO “I find that the harder I work the more luck I seem to have." — Thomas Jefferson.

These wise words by the third president of the United States probably have been repeated several times over in conference meetings or borrowed by business authors to imbue a sense of diligence and ingenuity. However, one should take a note that it is not just about working hard, it is about going the extra mile in the right direction. For manufacturers the right path to slog is building a resilient supply chain strategy. Supply Chain Management (SCM) is essential for successful product distribution in the market, but this endeavor is no less than a hazy nightmare for manufacturers due to the presence of exhausting paperwork, coordination, and proper planning. The events of record snowing, blocked highways, or snared traffic further aggravate the challenges in the SCM landscape, making manufacturers to outsource a SCM partner who is reliable and efficient. “Companies are taking refuge in the skills of SCM professionals, to keep their goods and services flowing in the marketplace quickly, efficiently, and as cost-effective as possible,” says Robert Sanchez, Chairman and CEO, Ryder System [NYSE:R].

An industry-leading FORTUNE 500 company, Ryder’s products and services encompass everything from fleet management to large-scale supply chain solutions and turnkey transportation solutions, making commerce flow more reliably and seamlessly for manufacturers. Ryder Supply Chain Solutions (SCS) manage the flow of goods from the acquisition of raw materials to the delivery of finished products. SCS solutions are backed by another service Ryder Dedicated, which provides laudable transportation solutions that combine vehicles, drivers, routing, and scheduling to enable businesses run lean with increased agility.

Demystifying the Maze of Supply Chain

Various manufacturing companies often fail to deliver on their promise due to their incapacity to learn the fundamental needs of the supply chain industry. They fail to understand that the latter is like a never-ending maze—challenging at every step—unless one has a right map in their hand to decipher it. Remember the Labyrinth showed in the 2006 blockbuster, Pan's Labyrinth—supply chain realm is just like that but more real and twisted. Take first few steps in it and meet the intricacies involved with the movement and storage of raw materials. If one manages to find their way around this obstacle, facilitating work-in-process inventories and management of goods from point of origin to consumption will be enough to make any manufacturer lose the sight of destination.

Lane by lane, TranSync compares common carrier costs with customer’s fleet costs

Every turn in the maze is a challenge in itself, giving rise to questions that are difficult to answer. Is the negotiating rate with carriers favorable? Is this the most effective route or mode of transportation to move goods? Is it possible to proactively optimize transportation network? Walk with Ryder and organizations can finally find the way out from the supply chain labyrinth.

“With our solution, we entrust visibility to improve efficiency across every mode of transportation, enabling manufacturers to take control of their entire logistics operation,” says Sanchez. Every year, Ryder manages $4.3 billion in freight spend and nine million shipments through five global control towers and a network of 1,700 carriers. With this the company provides insight, management expertise, purchasing power, network engineering, and standard operating practices to help customers optimize resources, execute with excellence, and continuously improve performance—while keeping costs low and customer service high. From planning, procurement, and execution to management of transportation network, Ryder assists manufacturers to reduce transportation management system costs and improve service levels.

Simplifying Logistics across the Globe

Managing a supply chain portfolio is not a child’s play. It involves focus, right people and solutions, and prolific strategies to maintain an efficient supply chain lifecycle. Thanks to Ryder; manufactures are no longer haunted by the thoughts of managing fleets and drivers, routing, scheduling, or administrative support. “For shippers facing current industry challenges, including the driver shortage, capacity constraints, and rising freight prices, getting freight to its final destination on time is a major cause for concern,” says Sanchez. Stringent federal and safety regulations have also made manufacturers anxious—shoving them away from managing their core business efficiently. With Ryder Dedicated Transportation Solutions, manufactures can streamline their transportation network, while the customers focus on other priority aspects of their business. Ryder optimizes transportation networks to give companies the flexibility needed to manage their business, comply with regulations, and deliver a reliable customer service experience. In addition, with the Transportation Solutions, businesses can tap into valuable, revenue-generating back-haul opportunities, meet tighter delivery windows, and satisfy critical manufacturing and distribution requirements.

Ryder has been applauded for its patent pending tool, TranSync, which helps their customers make better transportation decisions and truncate expenses.

Manufacturers can leverage TranSync to analyze the transpiration network and gain business intelligence and analytics that enable seamless planning across various providers and modes, and maximize asset utilization. “Lane by lane, TranSync compares common carrier costs with customer’s fleet costs,” says Sanchez. Taking into consideration the fixed costs and backhaul opportunities inherent with the fleet, TranSync optimizes a network to the lowest effective operational cost. This allows Ryder to provide the right balance between dedicated or private fleet and for-hire carriers to right size manufacturer’s fleet. With a new dashboard and comprehensive metrics, TranSync provides full visibility into customer’s transportation network, as well as improved tactical and strategic decision-making.

Faced with rapid growth, increasing supply chain complexity and rising transportation and distribution costs, Bendix Commercial Vehicle Systems—an Ohio based developer of vehicle safety systems—came to Ryder to simplify their supply chain challenges. At that time, Bendix was looking for solutions that can enable them to increase efficiency and visibility, and wring excess costs from its supply chain. In response, Ryder Dedicated Transportation Solutions were provided by Ryder that streamlined Bendix’s transportation and distribution activities, consolidated inbound and outbound domestic and international shipments, and conferred cross-dock capabilities. Bendix experienced a commendable improvement in their supply chain efficiency and controlled costs as the overall transportation and distribution expenses was reduced by $8 million. The company was also benefited with increased throughput and reduced labor costs.

Creating Opportunities Everywhere

With more than 30 years of experience, Ryder’s comprehensive network of offices and agents across Asia and an expert team of logistics engineers work with manufacturers to execute supply chain operations with precision and agility. With an on-the-ground presence in key local markets, Ryder has created a reputation of its own across Asia, proactively managing global supply chains, conducting factory inspections to ensure vendor compliance, meeting deadlines and quality specifications.

In the days to come, new chapters will unfold, which will bring new sets of challenges and technologies for manufacturing industry. For Ryder, these challenges are nothing but prolific opportunities in disguise. The company aims to create disruptions not only with its holistic solutions but also with its aspiration to become the best ‘everywhere’ across the globe. Obviously not an easy milestone, but as the saying goes “When you reach the end of your rope, tie a knot in it and hang on”—the words of Mr Jefferson again—Ryder will not lose its grip and sight to become the leader in the supply chain landscape.

- Arun Kant
    February 10, 2016