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TRANSPORTATION MANAGEMENT OVERVIEW

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Source: 2006 Third Party Logistics Study, Georgia Tech, Cap Gemini, DHL, and SAP ... Signs That You Should Not. Outsource Logistics. Appendices. About Ryder ... – PowerPoint PPT presentation

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Title: TRANSPORTATION MANAGEMENT OVERVIEW


1
TRANSPORTATION MANAGEMENT OVERVIEW
  • Date

2
Introduction
Attendees
  • Agenda
  • Who is Ryder?
  • Defining Transportation Management
  • Our Transportation Management Capabilities
  • Plan, Procure and Execute
  • Support Services
  • Continuous Improvement
  • Why Ryder?
  • Discussion Dialogue
  • NameAttendee title
  • NameAttendee title
  • NameAttendee title

3
Who is Ryder?
4
Ryder At-A-Glance
Since its founding in 1933, Ryder has become a
leading provider of logistics transportation
solutions worldwide.
Corporate Statistics (2008)
Retailers Served (sample list)
  • Year Ryder Began Business 1933
  • 2008 Revenue 6.2 Billion
  • 2008 Net Earnings 200 Million
  • Warehouses Managed 200
  • Total Warehouse Sq. Ft. Leased by Ryder 19
    Million
  • Freight Under Management 4.3 Billion
  • Carriers Under Contract 1,700
  • Vehicles 163,400
  • Employees 28,000
  • Fortune 500 Rank 371
  • NYSE R
  • Headquarters Miami
  • Regional Offices Toronto, Canada
  • Mexico City, Mexico
  • Shanghai, China
  • Singapore
  • London, United Kingdom
  • Equipment, Systems, Processes in place to serve
    more than 15,000 clients worldwide
  • Approximately 1,600 Ryder locations around the
    world

Ryder Clients (sample list)
5
Ryder Divisions
Over the last 15 years, Ryder has consolidated
into two major divisions - fleet management and
supply chain solutions. Within these, we offer a
comprehensive suite of transportation and
logistics solutions to companies around the globe.
Revenue by Division (2008)
Change in Product Mix
2008
1991
6
Transportation Management (TM) Capabilities
  • Defining Transportation Management
  • Common Global Process
  • Support Services Value-Added
  • Best In Class Technology Solutions

7
What is Transportation Management (TM)?
Ryder hires and manages carriers for customers.
Ryder Common Global Process
Plan
Procure
Execute
  • Create an optimal overall network design
  • Direct Modal selection
  • Create Biddable routes, volumes, O/D pairs
  • Create Route and load plan decision tools
  • Assemble plans into bid process
  • Buy carrier commitments based on plans
  • Contract carriers for the network
  • Administer contracts
  • Manage all regulatory and financial compliance

Take Orders / Make Loads
Tender Accept
Control Movements
  • Take order manually or electronically
  • Assign orders to modes or carriers
  • Create and maintain financial processes for orders
  • Tender loads or shipments to carriers
  • Manage the acceptance of loads
  • Maintain records and reports regarding Tender and
    Acceptance.
  • Make appointments
  • Provide track and trace for all shipments
  • Manage any exceptions to the progress of a
    shipments against the load plan
  • Take remedial steps for exceptions

Measure and Improve
8
Support Services and Value-Add
Account Management
Performance Reporting
Customer Collaboration for Continuous Improvement
KPI Visibility Accountability
Support Services Value-Add
Resource Flexibility
Increase Control of Freight Movement
Compliance Management
Control Towers
Leverage Best Practices
Predictable , Accurate Invoicing
Freight Bill Audit Payment
Quality Programs
9
Best-In-Class Technology
SIMPLE
COMPLEX
10
Why Ryder?
11
Delivering Value To Our Customers
Benefit
12
Case Study 1 - Reckitt Benckiser
Ryders relationship with Reckitt Benckiser
started in 2006. Currently Ryder provides
Transportation Management (TM) and Dedicated
Contract Carriage (DCC) for Reckitts six
logistics centers and six plants.
Operations Profile
Ryder Solution
Tangible Benefits Realized by Reckitt Benckiser
  • 6 Logistics Centers
  • Mechanicsburg, PA
  • Pendergrass, GA
  • Springfield, MO
  • Irving, TX
  • Tooele, UT
  • Milton, ON
  • 6 Plants
  • - Bell Mead, NJ
  • - Fort Worth, TX
  • - Brandon, MS
  • - Springfield, MO
  • - St. Peters, MO
  • - Juarez, Mexico
  • 35 External Manufacturing Facilities
  • Services Provided
  • TM services for approximately 80 million in
    freight expenditures
  • Shipment Planning Execution
  • Dedicated Contract Carriage
  • Freight Bill Audit Payment
  • Technology Solutions
  • i2 Transportation Management System
  • Transportation Intelligence System (TIS)
  • RyderTrac Tools
  • Dedicated Contract Carriage (DCC)
  • Currently provide contract carriage for
    approximately 210 shipments per month
  • Procurement Savings
  • Identified a potential 11 TL transportation
    savings on an 88MM spend through a multi client
    bid
  • Fuel Surcharge Save
  • Saved Reckitt Benckiser more than 185 thousand
  • Optimization Save
  • 110 increase in Plant direct to customer
    shipping netting in approx additional 500 K
    annualized in transportation save through 2009
  • Modal conversion net 593,334.00 in
    transportation savings through 2009
  • TL Customer Weight per Conveyance improvements
    from 32,000 per truckload in 2007 to 35,000 per
    TL in 2009
  • Improved Service Levels
  • On time performance to Required Delivery Date
    gt95 RDD service to RB Key customers
    (representing 80 order volume) YTD in 2008 and
    continuing in 2009
  • Service levels for the DCC solution are currently
    at 99.9

Reckitt Benckiser Shipping Volume
Serving Major National Retailers and Grocery
Chains, including
13
Case Study 2 Stonyfield Farm
Ryder provides Transportation Management (TM),
Carrier Management (CM) and Dedicated Contract
Carriage (DCC) services to Stonyfield Farm.
Tangible Benefits Realized by Stonyfield Farm
Operations Profile
Ryder Solution
  • Negotiated Rate Savings
  • Significant reductions in Transportation costs
    for line haul rates versus historical rates
  • Total rate savings since inception is 10.28
  • Fuel Surcharge Savings
  • Significant reductions in fuel costs to
    Stonyfield versus historical fuel
  • Fuel costs have decreased 9.4 since inception,
    or a 1.42 of total prior transportation spend
  • Audit Savings
  • Savings realized on audit of freight bills
  • Ryder has found and corrected freight bills to
    realize approximately .42 of total prior
    transportation spend
  • Total savings versus historical spend 12.12
  • One Distribution Center
  • Londonderry, NH
  • Co-packers
  • Kemps, Farmington, MN
  • Brown Cow (subsidiary), Antioch, CA
  • Actimel/Dannon, Orefield, PA
  • Schreiber Foods, Shippensburg, PA
  • Schreiber Foods, Richland Ctr, WI
  • US Cold, Los Angeles, CA
  • Services Provided
  • All outbound shipping from Londonderry, NH plant
    refrigerated truckload and refrigerated LTL
  • All co-packer inbound shipping
  • Ice cream and yogurt shipments
  • Carrier incident tracking and reporting monthly
  • Technology Solution
  • Ryder TIS (Transportation Intelligence System)
  • Monthly accrual
  • Various monthly and weekly reports
  • Stonyfield has been able to use Ryders reporting
    capabilities to eliminate nearly ALL LTL
    shipments from its network, thus reducing cost
    per pound
  • Annual reports for EPA SmartWay program

Future Savings Opportunities
  • DC Network Optimization
  • West Coast distribution center
  • Shipment planning and execution
  • Shipment consolidation
  • Additional pool points
  • DCC fleet expansion
  • Collaboration with other DCC fleets
  • Ryder On-Line / CSI / Dock Scheduler

14
Performance That Counts
  • Improve Service and End-Customer Satisfaction
  • Reliability Carrier and shipment management to
    ensure timely pickup and delivery
  • Communication - Streamline communication via one
    centralized control tower
  • Expand Control of Transportation Activities
  • Visibility - Improved visibility allows for
    shipment tracking, tracing, diversion, or
    expediting when necessary
  • Centralization Streamline transportation
    processes across multiple locations
  • Inventory Control Minimize inventory by
    controlling shipping frequency
  • Automation Reduce order cycle time, improve
    data accuracy and reduce costs
  • Performance Reporting Identify opportunities
    for continuous improvement
  • Reduce Costs and Non-Value Added Activities
  • Consolidation - Consolidate orders and shipments
    across locations and customers to achieve
    significant freight savings
  • Premium Transportation - Validate and optimize
    premium transportation
  • Compliance Management - Minimize the impact of
    supplier and carrier non-compliance
  • Collaborative opportunities across clients DCC
    backhaul capacity, continuous moves, etc

15
Discussion
  • Tell us about YOUR needs
  • What to Look for in a Transportation Management
    Provider
  • Are you a good Outsourcing candidate?

16
Discovery and Dialogue Questions
Discussion Topics
Discovery Questions
  • Network Components
  • Customers
  • Carriers
  • Suppliers
  • Distribution Centers
  • Cross Docks
  • Alliances
  • Business Factors
  • Cost
  • Performance / Service
  • Short-Term Objectives
  • Long Term Goals
  • Operations
  • Current State As-Is
  • Future State Ideal
  • How are your carriers and suppliers managed?
  • How is Transportation Management currently
    performed?
  • Shipment Planning
  • Carrier Procurement
  • Load Dispatch
  • Shipment Tracking
  • Performance Management Reporting
  • Shipment Volumes by Mode regular vs. peak
    season ?
  • Are you partnered with a 3PL now?
  • Where are there service/performance gaps?
  • How is information communicated between network
    partners? (manual/electronic, frequency)
  • What type data analysis would be important to
    you? Do you need certain information to make
    decisions that you dont have today?

17
What to look for in a Transportation Management
Provider
  • Does the provider have demonstrated examples of
    their capabilities? (i.e.. proven success)
  • Is the provider able to provide scope and scale
    to meet your TM needs, both now and in the
    future? (one size does not fit all)
  • Does the provider have financial solvency?
  • How long has the provider been in business, and
    what are their overall strategies for growth and
    longevity?
  • Are the IT systems and processes equipped to
    support small and large suppliers/carriers/network
    partners?
  • What Quality Programs are in place? What is the
    Providers level of commitment to continuous
    improvement?

18
Appendices
  • About Ryder
  • Plan, Procure and Execute
  • Support Services Value-Add
  • Applications IT Systems
  • Case Studies
  • Miscellaneous

19
Appendix 1
  • About Ryder

20
Alternative Cover Slides
  • Download additional cover slide options from
    Ryders Brand Center
  • http//www.ryder.com/printerfriendly.jsp?titleRyd
    er20Presentation20Coversrpfilecontent/employee
    s_brandcenter_cove.html

Product Line
Industry
  • plus
  • Corporate (standard)
  • Fleet Management Solutions
  • Dedicated Contract Carriage
  • plus
  • Construction
  • High Tech Electronics
  • Industry Generic

21
Key Ryder TM Customers by Vertical/Product
DCC Integrated
Automotive/ Aerospace
CPG/Retail
High Tech
Ryder serves a large group of high profile TM
clients both inside and outside the TMC Ft. Worth
22
CLIENT INDUSTRY RECOGNITION
Widely recognized as a leading provider of
Logistics Services, Ryders experience and
expertise encompasses small and large companies
in virtually every industry. Ryder has earned a
reputation for world-class execution and
innovation.
TECH/OTHER
INDUSTRY
CLIENTS
  • InformationWeek 500
  • Leading Business User of Information
    Technology - 8 consecutive years
  • Forbes
  • Best Big Companies in America - 2008
  • Black Enterprise
  • 40 Best Companies for Diversity - 2008
  • Computerworld
  • Top 12 Green Users - 2008
  • Security Magazine
  • Security 500 - 2 consecutive years
  • Inbound Logistics Magazine
  • 1 3PL Provider - 2007 to 2009
  • Best 3PL Provider - 10 consecutive years
  • Top 25 Greenest Logistics Providers 2009
  • Fortune Magazine
  • Most Admired Companies 10 consecutive years
  • Logistics Management
  • Quest for Quality Award - 2009
  • Food Logistics Magazine
  • Top 70 Third Party Logistics Provider
  • Modern Logistics News
  • Outstanding Integrated Logistics Provider -
    2008
  • Phillips Consumer Electronics
  • Global Carrier of the Year - 2007
  • General Motors
  • Supplier of the Year - 2007
  • Toyota
  • Top Supplier Award - 2007
  • Regional Contribution Award - 2007
  • Lear Corporation
  • Hall of Fame Supplier - 2006

22
23
Appendix 2
  • Plan, Procure and Execute

24
Engineering Analysis And Design
Network Analysis
Output
Input
  • Optimized routes
  • Ideal Number and Location for Pool Points / Hubs
    / Distribution Centers
  • Lane Details
  • Product Characteristics
  • Business Parameters
  • Industry Rules Regulations

Transportation Analysis
Output
Input
  • Resource Requirements - Optimal Fleet Size,
    Equipment Type and number of drivers
  • Mode Selection/s (By Lane)
  • One-Way and Closed-Loop routing
  • Common Carriage
  • Dedicated Contract Carriage (DCC)
  • Network Analysis Results (Output)
  • Pool Points/Hubs/Facility or DC Locations
  • Location Business Rules (Loading Time, Operating
    Hours, Equipment Requirements, etc)

25
Engineering Analysis And Design
Data Inputs
Engineering Outputs
Network Analysis
  • Lane Details
  • Product Characteristics
  • Business Parameters / Constraints
  • Industry Rules Regulations
  • Optimized Routes
  • Ideal Number and Location for Pool Points / Hubs
    / Distribution Centers

Transportation Analysis
  • Resource Requirements
  • Optimal Fleet Size, Equipment Type and number of
    drivers
  • Mode Assignment/s (By Lane)
  • One-Way and Closed-Loop Routing
  • Common Carriage
  • Dedicated Contract Carriage
  • Network Analysis Results
  • Optimized Routes
  • Pool Points/Hubs/Facility or DC Locations
  • Location Business Rules (Loading Time, Operating
    Hours, Equipment Requirements, etc)


26
Common Carrier Bid Process
During the proposal process, Ryder will
collaborate with you to define improvement
opportunities within your network.
Standardized Procurement Process
  • Leverage over 4.3 billion in total
    transportation spend (all modes)
  • Portfolio of 1700 pre-qualified carriers
  • 20 years experience in sourcing transportation
    services
  • Time-proven on-boarding process, both for
    suppliers and carriers
  • 2.75 M TL and 1.2 M LTL shipments managed in 2008
    across 72 clients, 24,700 Bulk shipments managed
    across 15 clients

Ryder supports a Small Business and Supplier
Diversity Program through the development of
partnerships seeking opportunities for qualified
small and diverse businesses to participate at an
equitable level in our procurement process.
27
Flexible, Scalable Execution Process
  • Customer or Ryder can complete and manage each
    execution step
  • Manual and/or Electronic options available for
    each execution step
  • Location Indifferent Customer location, Ryder
    Call-Center or remote domicile/office

28
Flexible Technology
We offer a wide-range of technology solutions
that are customized to meet our clients needs, no
matter how simple or complex.
Execute
Simple
Complex
29
Modular Solutions
30
Technology Timeline
10 Weeks
10-12 Weeks
i2 Timeline and Costs are the same for
Lights-Out and Standard Process
18-20 Weeks
12 Weeks (as Stand Alone)
4 6 8 10 12
14 16 18 20 22
24 26
Procurement, FBAP and RyderTrac 12-14 weeks
Comments
FBAP Only (with Web-Based Reporting via TIS) 8
weeks
31
Control Movements
Ryder Online Alerts
Shipment Visibility Event Management
Transportation Management
  • Web-based visibility to shipment status
  • Shipment, Load, Stop, Container, Parcel, and Item
    Level Tracking
  • Sales Order and Purchase Order Tracking
  • Active Alerts (user-defined)
  • Notify user of events that have (or have not)
    occurred
  • Automated requests sent to carriers for missing
    status updates (at determined intervals)
  • Support ability to manage by exception
  • Robust and flexible search engine
  • Customer specific reference numbers
  • Drilling capabilities
  • Standardized and Ad-hoc Reporting

Logistics Management
32
Appendix 3
  • Support Services Value-Add

33
Program Management Tools
Ryders certified operational processes and
performance measurements have an extremely
positive impact on the performance of the
operation, offering customer satisfaction and
cost reductions through continuous process
improvements, error prevention, and doing things
right the first time.
Time-Proven Methodology
Centralized Operations
  • Dedicated Account Team
  • Single Point of Contact
  • Formalized Account Plans
  • Standardized and Location-Specific Processes
  • Internal External Blind Audits
  • Contractual
  • Financial
  • Operating Performance

Quality Management Programs
Performance Management Reporting
(Supply Chain Product Methods Database)
34
Account Management Reporting
Data Source
Data Elements
Centralized, Web-Based Reports
  • Transportation Management Systems (i2 TMS, LMS,
    Ryder Online, Other)
  • Shipment Visibility Tool
  • Freight Bill Audit Payment System (TIS
    Reporting)
  • Shipment Details
  • Event Status Details
  • Exceptions
  • Freight Charge/s
  • Assessorial Charge/s
  • Audit Information
  • Freight Details
  • Ship to Plan Performance by Part
  • On-Time Performance
  • Premium / Expedite Activity
  • Over, Short, Damaged Freight / Exceptions
  • Shipper and Carrier Compliance
  • Freight Bill Aging Payment Details

Features
  • Custom Standardized
  • Scheduled / Automated Generation
  • Flexible, user-defined preferences
  • Print, export, save or email results
  • Drill-Down Functionality
  • Data graphing charting

35
Other Support Services
Support Services
Carrier Scorecard
  • Performance Compliance Management
  • Key Performance Indicator (KPI) Reporting
  • Formalized Corrective Action Plans
  • Monitor compliance to customer requirements /
    service levels
  • Executive sponsorship for customer reviews
  • Carrier Scorecards
  • Carrier Awards Program
  • Carrier Contract Management
  • Contract Compliance
  • Regulatory Compliance
  • Claims Resolution
  • File, track and collect on behalf of customer
  • Reporting and Trend Analysis
  • 1) Service Performance 50 Pts.
  • 2) Provider Value 40 Pts.
  • 3) Claims Performance 25 Pts.
  • 4) Safety 20 Pts.
  • 5) Technology 20 Pts.
  • 6) Customer Service 20 Pts.
  • 7) Invoicing Accuracy 15 Pts.
  • 8) Innovative Idea Generation 10 Pts.
  • TOTAL POINTS POSSIBLE 200

36
PERFORMANCE MANAGEMENT
Ryders certified operational processes and
performance measurements have a measurable impact
on the performance of the operation. Drive
customer satisfaction and reduce cost through
continuous process improvement and error
prevention.
  • People Involvement (PI)
  • People at all levels feel they are important
    team members
  • Empowered to make decisions on how their job is
    performed
  • Held accountable for decisions
  • Continuous Improvement (CI)
  • Every aspect of business is challenged to get
    better
  • Good yesterday ? improved for acceptable today
  • Short Lead Time (SLT)
  • Reduce the time it takes to complete a task
  • Eliminate waste from every process step
  • Good yesterday ? improved for acceptable today
  • Built-In Quality (BIQ)
  • Do it right the first time
  • Eliminates costly reworks and downstream quality
    inspections
  • Standardization (S)
  • Document work processes/best practices
  • Use standard operating procedures to train new
    employees
  • Act as baseline for continuous improvement

LEAN GUIDING PRINCIPLES
36
37
Freight Bill Audit Payment (FBAP)
38
Shipment Planning Execution Centers
  • 5 Control Towers Worldwide
  • Dedicated and Shared Resource Centers

39
Appendix 4
Applications IT Systems
40
RyderOnline Web Portal
Functionality by Module
Transmit Order
Build Loads
Shipment Visibility
Tender / Accept
RyderTrac
RyderEntry
Carrier Selection Interface
RyderShip
  • Manually assign shipments to loads
  • Online Routing Guide to support carrier selection
  • Add shipment attributes or comments for carrier
  • Carrier portal for accepting/rejecting loads
    tendered
  • Web-Based
  • Near Real Time Shipment Tracking
  • Active Alerts
  • POD Information
  • Interfaced with Ryder dedicated dispatch system
    for real-time visibility of in-transit dedicated
    trucks
  • Manually key via RyderEntry Module
  • and/or
  • Electronic Transmission
  • EDI
  • Internet-based eXtensible Markup Language (XML)
  • Flat files via File Transfer Protocol (FTP)
  • Ideal Customer/Freight Characteristics
  • Volume 30-40 shipment / day on average
  • Transportation Network Simple to Moderate ,
    Un-planned
  • Considerations Trade-off between Labor and IT
    costs

41
i2 Transportation Management System (TMS)
Standard Process
Tender / Accept
Shipment Visibility
Transmit Order
Build Loads
i2 TMS or RyderOnline
i2 TM Optimizer
i2 TMS
RyderOnline
  • EDI, fax or email tender accept
  • Generates BOL and supporting documentation
  • Automatic tender to next carrier
  • Automatic consolidation using sophisticated
    algorithms
  • Optimizes delivery routes
  • Dynamically selects carrier and pool point/s
  • Considers service times, operational constraints,
    freight characteristics carrier costs
  • Web-Based
  • Near Real Time shipment tracking
  • Active Alerts
  • POD Information
  • Manually key via RyderEntry Module
  • and/or
  • Electronic Transmission
  • EDI
  • Internet-based eXtensible Markup Language (XML)
  • Flat files via File Transfer Protocol (FTP)
  • Ideal Customer/Freight Characteristics
  • Volume Over 40 shipments/day
  • Large parcel, LTL and/or TL volumes
  • Unplanned Transportation Network (Dynamic Routing)

TMS Optimizer Sample Screen Shot
42
i2 TMS Lights-Out Process
Tender / Accept
Shipment Visibility
Transmit Order
Build Loads
i2 TMS or RyderOnline
No Consolidation
i2 TMS
RyderOnline
  • Electronic Tender
  • Automatic re-tender to
    secondary carrier
  • Automatic Load Building - Assign Order Carrier
    (11 order / load ratio)
  • Same as Standard Process
  • Manually Key via RyderOnline
  • and/or
  • Electronic / EDI
  • Web-Based
  • Near Real Time shipment tracking
  • Active Alerts
  • POD Information

Can be used in Conjunction with Standard Process
Lights Out No Manual Intervention
Data Elements that can Initiate the Lights-Out
Process
  • Carrier
  • Equipment
  • Weight
  • Customer (Ship-to)
  • Lane (Shipper Destination)
  • Reference Number
  • Service
  • Item (SKU)
  • Volume
  • Ideal Customer/Freight Characteristics
  • Orders requiring minimum planning (1 order 1
    shipment)
  • Short cycle time (order to ship)
  • Freight that can not be consolidated due to
    operational or freight constraints
  • Orders that constitute a full Truckload
  • Unplanned Transportation Network (Dynamic Routing)

43
Logistics Management Suite (LMS)
Supporting Planned Networks
Tender / Accept
Shipment Visibility
Transmit Order
Build Loads
Release Mgt System
Logistics Planning Software
Pre-Assigned
Execution Mgt Sys.
  • Carriers are pre- assigned based on pre planned
    loads.
  • Pre-determined time windows
  • Accept Load or Pay
  • Pre-planned based on production schedules
  • Proactive optimization to support changes in
    production plans
  • Web-Based
  • Near Real Time shipment tracking
  • Active Alerts
  • POD Information
  • Release based on production schedules (830)
  • Electronic / EDI
  • Ideal Customer/Freight Characteristics
  • Volume No volume constraints
  • Planned Transportation Networks
    (e.g. Supplier to Mfg,
    Automotive)
  • TL, MSTL, LTL volumes

44
Logistics Management Suite (LMS)
LMS Planned Networks
AFTER Ryder LMS Result Automated, Seamless,
Universal
BEFORE Ryder LMS Issue Manual, Disconnected,
Overlapping
Customer
Customer
Manual Processes
Material Release
Material Release
Phone, Fax, EDI
Tier 2A
Tier 2B
Tier 2C
Tier 2A
Carrier A
Release, Configuration and Shipment
Configuration
Tier 2B
Carrier B
Tier 2C
Carrier C
Shipment
Total Labor Time
Total Labor Time
Time
45
Appendix 5
  • Miscellaneous

46
Top 5 Reasons Companies Outsource
  • Pressure to Reduce Cost
  • Emphasis to Improve Supply Chain Management
  • Implementation of New IT Platform/Processes
  • Enhancement of Customer Service
  • Globalization

Source Third Party Logistics Study, Georgia
Tech, Cap Gemini, DHL, and SAP (2004-2008)
47
Economic Value of Outsourcing
  • Logistics cost reductions averaged more than 12
  • Fixed logistics asset reduction reported was
    approximately 20, the percentages are somewhat
    higher for Asia Pacific and Latin America than
    for North America and Europe.
  • The average length of an order cycle dropped,
    with improvements ranging from about 20 to 30
    (measured in days).
  • Overall inventory reductions ranged from 7 in
    North America to 16 in Latin America
  • Cash-to-cash cycles decreased as a result of 3PL
    use.

Respondents also reported service level
improvements of 55.
Source 2008 Third Party Logistics Study,
Georgia Tech, Cap Gemini, DHL, and SAP
48
What Companies Seek from Third Party Providers
Ideally, all parties enter into a strategic
relationship to obtain the maximum benefit from
outsourcing. Ryders value to a customer is
measured in its ability to provide innovation and
thought leadership to enable long term
sustainable improvement in service, customer
satisfaction, financial stability and shareholder
value.
Two-Tiered Relationship Structure
Relationship Attributes
Traditional Outsourcing Terms
Relationship Structure
Service Attributes
  • Partnership Joint Venture
  • Value Based
  • Risk Sharing
  • Few Partners
  • Long Term (5years)
  • Common Core Values
  • Alignment and Trust
  • Cooperation
  • Fourth-Party Logistics Provider (4PL)
  • Lead Logistics Provider (LLP)
  • Supply Chain Manager (SCM)
  • Broad supply chain expertise
  • Deep industry domain and consultative skills
  • Advanced technology capability
  • Business process outsourcing, beyond logistics
  • Project management and provider coordination
  • 3PL technology integration
  • Innovation and continual improvement

Strategic
Tactical
  • Contractual
  • Fixed and Variable
  • Transaction Oriented
  • Short Term (1 to 5 years)
  • Third-Party Logistics Provider (3PL)
  • Logistics Service Provider (LSP)
  • Traditional logistics services
  • Modular product offerings
  • Focused cost reduction and service improvement
  • Operating excellence
  • Niche services

Source 2008 Third-Party Logistics Study,
Georgia Tech, Cap Gemini, DHL, and SAP
49
Are You a Good Outsourcing Candidate?
Signs That You Should Outsource Logistics
Signs That You Should Not Outsource Logistics
  • Your companys logistics capabilities need to
    grow at an accelerated pace to support customer,
    market or product expansions.
  • Dramatic shifts in where your company sources raw
    materials or finished goods had made current
    distribution network inefficient or uncompetitive
    (global sourcing global selling)
  • Competitors are gaining market share or stealing
    customers by being able to promise quicker or
    more flexible delivery commitments
  • Logistics related performance metrics continue to
    be a challenge to improve, particularly vs.
    competitors (old technology systems)
  • No cross-pollination among functions in logistics
  • Cannot get C-level commitment
  • Your company has a poor or declining credit
    situation. Service providers are pushing to get
    out of the contract, causing customer disruptions
    and negative impact to your business
  • Your company only wants to reduce costs quickly
    without committing to changing its business
    processes (automation, innovation, and speed).
    Cost reductions are only a one-time hit and are
    typically not enough to stay competitive
  • Company believes that we have all the knowledge
    and tools needed in our supply chain business
    unit and it is viewed as a great place to work
    within your firm - a rocket trajectory to the top
  • Your companys unique needs are not available in
    the market

Source Jim Moore, Vice President of Automotive
Industrial Industries, Purchasing Magazine,
October 2007
50
RYDERS FINANCIAL STRENGTH STABILITY
Even through difficult economic times, Ryder has
posted consistent positive overall earnings. In
2008, Ryder's Operating Revenue across all
business segments rose by 1. Although modest,
we continued to manage our financial stability
closely and paid dividends to shareholders. In
2008, US SCS Operating Revenue rose by 3.
Ryder has paid dividends to shareholders for 133
consecutive quarters (31 years) as of 3Q09
Debt to Equity Ratio
On Balance Sheet Debt
Off Balance Sheet Debt
Earnings From Continuing Operations
Debt to Equity
225
168
157
129
151
EPS from Continuing Operations per share
50
51
Implementation Approach Deliverables
Continuous Improvement
Supply Chain Assessment
Network Implementation
Project Planning / Rollout Schedule
Network Planning Optimization
Network Maintenance
Document Business / IT Requirements
Propose Optimized Savings Opport.
New Program Planning
Plan
Collect Evaluate Logistics Data
Baseline Existing Network
Network Redesign based on volume changes
Identify Propose Immediate Savings Opportunities
Collect Evaluate Existing Carrier Agreements
Implement Ryder FSC
Carrier Compliance Reporting
Document Freight Payment Requirements
Route Bidding/Carrier Negotiations
Procure
Develop Procurement Strategy
Spot bids / Route re-bids
Carrier Meetings Training
Convert Current Carriers to Ryder Contracts
Full Freight Pay and Audit
Freight Pay as Presented
HR Staffing Plan
Claims Management
Metrics Reporting
Plant Specific Requirements/GAP Analysis
Expedite Management
Kaizen Activity
Quality Documentation
Execute
Receive EDI 830,862
Logistics Waste Walks
Begin IT Integration
Complete Syst. Configuration
Load Routes into Trans. Mngt Syst.
Plant Business Reviews
Customize Reports
Identify Immediate Savings Opport.
1 2 Months
2 4 Months
On-going
52
Implementation Program Life Cycle
Phase I Assess
Phase II Design
Phase III Build
Phase IV Run
Phase V Reinvent
Business Development
Solutions Design
Program Management
Operations Management
Approval for Project Planning, Go Decision
Implementation of Project Plan, Certification for
Go-Live
Project Plan Executed, Ready toGo Live
Ongoing Operations / Continuous Improvement
Evaluate Client Requirements - Begin Due
Diligence
Deliverables
53
Implementation Methodology Model
Phase I Assess
Phase II Design
Phase IV Run
Phase V Reinvent
Phase III Build
  • Potential Value
  • Approach
  • Assessment
  • Manage
  • Execute
  • Deliver
  • Analyze
  • Modeling
  • Solution
  • Improve
  • Redefine
  • Innovate
  • Defining
  • Planning
  • Execution
  • Delivery

Program Management Focus
DEFINING Review the opportunity agree on what
needs to be done
PLANNING Determine how the what will be
done, Risk Mitigation
EXECUTION Complete project plan tasks, Manage
Milestones
Delivery Transition to Operations, Document
Lessons Learned
54
Implementation Methodology Model
Standardized Implementation Approach
Value
  • Ensures clients requirements are well defined
  • Provides leadership and guidance
  • Applies best practices and processes
  • Facilitates effective communication
  • Manages scope change, risk, and issues
  • Maximizes the use of the implementation resources
  • Delivers a working solution, trained resources,
    documented processes, and certification to Go-Live

55
Implementation Managing Expectations
Challenge
Business Owner
Program Team
Non-Team Members
Ryder Exec. Team
Customer
Conflicting Expectations
Resolution
Program Managers
Guidelines and PM Toolkit to Draw Upon
Program Management Processes
Business Experience / Best-Practices
Other Ryder Processes (Kaizen)
Leadership Techniques
ACE Quality Program
Drive Adapt, Improvise, Overcome
Negotiate, agree upon, and set realistic
expectations that are determined most likely to
result in program success
56
IT Implementation Methodology
Continuous Improvement
Operate
Build / Deploy
Design
Plan
Manage Program
Plan Program
Project Duration
Proposal
Functional Design
Detailed Design
Testing/Training
Implementation
Account Support Phase
Support continues for the duration of the
partnership
Check points to ensure project is meeting program
objectives
57
TM Applications RyderOnline Web Portal
  • RyderEntry - Manual Order Transmission Module
  • Customized for each user and / or organization
  • Allows users to create and save up to 50
    templates (ex default shipper address, loading
    requirements)
  • Validates City, State and Postal Code data
  • Performs field validation to verify date ranges,
    shipment specifications and field lengths
  • Allows non-EDI carriers to enter status details
    that are then displayed online via RyderTrac

58
TM Applications RyderOnline Web Portal
Carrier Selection Interface (CSI) Manual Load
Building Module
Load Building Process
Dedicated Routes
  • CSI can interface with Network Optimization tools
    to identify Dedicated versus Common Carrier
    Routes
  • Integrated with Ryders Dedicated Dispatch System
    for automated dispatch of dedicated loads

Sample Screen Shot Step 4 - Assign Carrier
Sample Screen Shot Step 3 - Sequence Stops
59
TM Applications RyderOnline Web Portal
  • RyderShip - Load Tender / Accept Module
  • Carrier sees all loads tendered via the Tender
    Dashboard (Can view by multiple Ryder clients)
  • Pending line shows everything they need to accept
    or reject from today.
  • Load is Accepted or Rejected and appears on
    Tender Summary Screen
  • Tender Expires after set time and is
    auto-tendered to Next Carrier

60
TM Applications RyderOnline Web Portal
  • RyderTrac - Shipment Visibility, Track Trace
    Module
  • Web-based Track and Trace
  • Shipment, Load, Stop, Container, Parcel, and Item
    Level Tracking
  • Sales Order and Purchase Order Tracking
  • Active Alerts (user-defined)
  • Notify user of events that have (or have not)
    occurred
  • Automated requests sent to carriers for missing
    status updates (at determined intervals)
  • Support ability to manage by exception
  • Robust and Flexible Search Engine
  • Drilling Capabilities
  • Standardized and Ad-hoc Reporting
  • Non-EDI Carriers able to manually submit statue
    updates via RyderEntry carrier portal
  • Integrated with Ryders dedicated dispatch system
    to map in-transit dedicated trucks in (real-time
    visibility)

61
RyderOnline Suite Integration Between Modules
Plan
Procure
Execute
Measure Improve
  • Communication Flow

Online Reports Shipment Visibility
62
RyderOnline and i2 TMS System Integration
Sample Process Flow
63
Ryder IT Product Suite
Ryders solutions are supported by world-class
information technology systems which include a
combination of purchased and in-house developed
software.
Transportation Management
Supply Chain Management
Distribution Management
Enabling Technology
Transportation Network Design
Supply Chain Strategy
Enabling Technology
Distribution Center Operations
Enabling Technology
  • RyderOnlineTM
  • Neoris ActiveSuite
  • i2 Supply Chain Strategist
  • i2 Transportation Modeler
  • LogicNet
  • ILPS / Facility Locator
  • TM
  • DM
  • LMS
  • i2 Transportation Manager/optimizer
  • i2 Transportation Modeler
  • RyderOnlineTM
  • RD2000TM
  • FBAP
  • TIS
  • ILPS
  • Appian
  • PeopleNet
  • Manhattan PKMS / WMOS
  • Click Commerce V3
  • Accellos SE2
  • YardView.net
  • RyderOnlineTM
  • RFID
  • LCM
  • InSequence
  • ProAct WMS

Solutions Engineering
Transportation Procurement
Inbound Product Supply
Outbound Product Support
Shipment Planning Execution
Lead Logistics Management Control Tower
Solutions
Reverse Logistics
Freight Bills, Audit Payment
Strategic Objectives
Strategic Objectives
Strategic Objectives
  • Evaluate supply chain performance
  • Optimize logistics network
  • Integrate multiple logistics functions
  • Provide overall supply chain functionality
  • Transportation network analysis and optimization
  • Optimize the Carrier base
  • Optimize daily shipping operations
  • Optimize fleet operations
  • Balance inventory transportation trade-offs
  • Optimize work flows
  • Maximize facility utilization
  • Streamline logistics flows
  • Provide value added services

Value-added Services
Dedicated Solutions
Global Trade Services
64
Ryder IT Architecture Integration
Ryder has developed a logistics information
technical architecture that can be described in
four categories planning, visibility,
integration, and execution.
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