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Ryder looks to disrupt e-commerce delivery

Feb. 14, 2019
Ryder says its proposed solution would allow manufacturers of small to large parcel goods to gain more control over product selection, inventory management, pricing strategy, and customer service, all while maintaining critical speed to market.

Ryder System Inc. this week unveiled an e-commerce fulfillment solution it hopes will transform the way many manufacturers do business online, offering an alternative to third-party marketplaces by fulfilling orders of manufacturer products direct to consumers.

With Ryder’s proposed solution, manufacturers of small to large parcel goods across all industries would gain greater control over product selection, inventory management, pricing strategy, and customer service, all while maintaining critical speed to market.

Ryder’s plan includes the opening of two purpose-built, multi-client facilities located in Perris, CA, and Fort Worth, TX, as well as the expansion of an existing Ryder-managed warehouse in Douglassville, PA. The three facilities are slated to be fully operational by May and will service – among other customers – a globally recognized small appliance manufacturer, with which Ryder’s e-commerce fulfillment solution has already delivered tremendous growth during an initial pilot phase.

“Just ahead of the peak holiday season, we transitioned our client from a third-party marketplace to Ryder’s e-commerce fulfillment solution and immediately delivered double-digit, week-over-week volume growth,” said Steve Sensing, Ryder president of Global Supply Chain Solutions. “During the period of Black Friday and Cyber Monday, Ryder delivered a 268% increase over expected volume and achieved 99.9 percent on-time and in-full shipping accuracy.”

Flexibility and scalability

Ryder’s new purpose-built, multi-client facilities – designed specifically for high-volume e-commerce fulfillment – are built to be flexible and scalable, the company explained in a statement, both in terms of space and labor. During this past peak holiday season, Ryder said it was able to rapidly scale up headcount 100% to meet its customers’ unexpected high seasonal demand, which reflected an average of 66% increase in volume growth week-over-week for 10 consecutive weeks.

With the additional e-commerce fulfillment facilities strategically located, Ryder added that it can deliver small to large parcel goods to 95% of the U.S. in two days or less.

Ease of entry

Ryder’s e-commerce fulfillment solution minimizes the barriers to entry for manufacturers wanting to gain greater control of their products and service levels. This includes:

  • A streamlined on-boarding process to ensure customers are operational quickly;
  • Specially trained Ryder teams provide customers with human resources, call center, and IT capabilities;
  • Warehouse order and management systems;
  • Full reverse logistics capabilities, as well as a complete suite of value-added services such as private labeling, bagging, gift wrapping, hand-written notes, and engraving.

The new e-commerce fulfillment solution for small to large parcel goods is an additional service offering by Ryder, which also operates one of the largest last-mile delivery solutions for big-and-bulky goods. Ryder Last Mile provides home delivery and white-glove installation for everything from furniture to large appliances, with 136 facilities covering 95 percent of the U.S. and Canada within a two-day timeframe.

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