Profile: Ryder System Inc (R.N)
14 Mar 2014
Ryder System, Inc. (Ryder), incorporated on March 22, 1955, is engaged in transportation and supply chain management solutions. Ryder operates in three business segments: Fleet Management Solutions (FMS), which provides full service leasing, contract maintenance, contract-related maintenance and commercial rental of trucks, tractors and trailers to customers principally in the United States, Canada and the United Kingdom; Supply Chain Solutions (SCS), which provides supply chain solutions, including distribution and transportation services throughout North America and Asia, and Dedicated Contract Carriage (DCC), which provides vehicles and drivers as part of a dedicated transportation solution in the United States. Its customers range from small businesses to large international enterprises. On January 10, 2011, it acquired Carmenita Leasing, Inc. On January 28, 2011, it acquired the assets of The Scully Companies Inc.’s DCC business, which included 17 customers served from 25 locations throughout the Western United States. On April 1, 2011, the Company acquired B.I.T Leasing. On June 8, 2011, it acquired all of the common stock of Hill Hire plc (Hill Hire). In April 2011, the Company completed the acquisition of the lease, rental and maintenance portfolio of B.I.T. Leasing Inc. On August 1, 2012, it acquired Euroway Group Ltd. In September 2012, it opened its new Ryder Vehicle Sales center, offering used trucks for sale in the Greater Vancouver Area.
Fleet Management Solutions
The Company through its FMS business provides its customers with fleet solutions. Its FMS product offering is comprised primarily of contractual-based service leasing and contract maintenance services. The Company also offers transactional fleet solutions including maintenance services and commercial truck rental and value-added fleet support services, such as insurance, vehicle administration and fuel services. In addition, the Company provides its customers with access to used trucks, tractors and trailers through its used vehicle sales program. At December 31, 2011, the Company had 539 operating locations, excluding ancillary storage locations in 49 states and Puerto Rico. A location typically consists of a maintenance facility or shop, offices for sales and other personnel, and in many cases, a commercial rental vehicle counter. Its maintenance facilities typically include a service island for fueling, safety inspections and preliminary maintenance checks, as well as a shop for preventive maintenance and repairs. The Company also operated 167 locations on-site at customer properties, which primarily provide vehicle maintenance.
At December 31, 2011, the Company had 35 operating locations throughout eight Canadian provinces. The Company also has 10 on-site maintenance facilities in Canada. The United Kingdom commercial lease and rental market are estimated to include approximately 0.2 million vehicles. At December 31, 2011, it had 56 operating locations throughout the United Kingdom and Germany. It also manage a network of 483 independent maintenance facilities in the United Kingdom to serve its customers. In addition to its typical FMS operations, the Company also supplies and manages vehicles, equipment and personnel for military organizations in the United Kingdom and Germany. Hill Hire plc (Hill Hire) is a service leasing, rental and maintenance company, which included Hill Hire’s fleet of approximately 8,000 full service lease and 5,700 rental vehicles, and approximately 400 contractual customers. Under a full service lease, it provides vehicle maintenance, supplies and related equipment necessary for operation of the vehicles while its customers furnish and supervise their own drivers and dispatch and exercise control over the vehicles. Its full service lease includes all the maintenance services that are part of its contract maintenance service offering. Once the Company signed an agreement, it acquires vehicles and components that are custom engineered to the customer’s requirements and lease the vehicles to the customer for periods generally ranging from three to seven years for trucks and tractors and up to ten years for trailers.
The Company’s contract maintenance customers use non-Ryder owned vehicles and want to utilize its network of maintenance facilities and trained technicians to maintain the vehicles they own or lease from third parties. The contract maintenance service offering is designed to reduce vehicle downtime through preventive maintenance based on vehicle type and time or mileage intervals. The service also provides vehicle repairs including parts and labor, round the clock emergency roadside service and replacement vehicles for vehicles that are temporarily out of service. Vehicles covered under this offering are typically serviced at its own facilities. The Company targets rental customers that have a need to supplement their private fleet of vehicles on a short-term basis (one day up to one year in length) either because of seasonal increases in their business or discrete projects that require additional transportation resources. Its commercial rental fleet also provides additional vehicles to its full service lease customers to handle their peak or seasonal business needs. In addition to one-off commercial rental transactions, the Company builds national relationships with customers to become their source of commercial vehicle rentals. Its rental representatives assist in selecting a vehicle that satisfies the customer’s needs and supervise the rental process, which includes execution of a rental agreement and a vehicle inspection.
The Company’s full service lease and contract maintenance customers periodically require additional maintenance services that are not included in their contracts. The Company obtains contract-related maintenance work because of its contractual relationship with the customers; the service provided is in addition to that included in their contractual agreements. Some customers also periodically require maintenance work on vehicles that are not covered by a long-term lease or maintenance contract. Ryder may provide service on these vehicles and charge the customer on an hourly basis for work performed. It has developed a variety of fleet support services tailored to the needs of its lease customers. Customers may elect to include these services as part of their full service lease or contract maintenance agreements. The Company offers fleet support services, such as fuel, insurance, safety, administrative, environmental management and information technology. The Company primarily sells its used vehicles at one of its 57 retail sales centers throughout North America (19 of which are co-located at an FMS shop), at its branch locations or through our website at www.Usedtrucks.Ryder.com.
Supply Chain Solutions
The Company through its SCS business offers a range of logistics management services that are designed for customer’s supply chain and address key customer business requirements. Its SCS product offerings are organized into four categories: distribution management, transportation management, dedicated contract carriage and professional services. At December 31, 2011, the Company had 318 SCS customer accounts in the United States, most of which are enterprises that maintain large, complex supply chains. These customers operate in a variety of industries including automotive, high-tech, telecommunications, industrial, consumer goods, paper and paper products, office equipment, food and beverage, and general retail industries. At December 31, 2011, managed warehouse space totaled approximately 25 million square feet for the United States and Puerto Rico.
At December 31, 2011, the Company had 45 SCS customer accounts and managed warehouse space totaling approximately one million square feet. At December 31, 2011, the Company had 83 SCS customer accounts and managed warehouse space totaling approximately four million square feet. Its Mexico operations offers a range of SCS services and manage approximately 1,000 border crossings each month between Mexico and the United States and Canada, often integrated with its distribution and transportation operations. At December 31, 2011, the Company had 34 SCS customer accounts and managed warehouse space totaling approximately 340,000 square feet.
The Company’s SCS business offers a range of services relating to a customer’s distribution operations from designing a customer’s distribution network to managing distribution facilities. Services within the facilities generally include managing the flow of goods from the receiving function to the shipping function, coordinating warehousing and transportation for inbound and outbound material flows, handling import and export for international shipments, coordinating just-in-time replenishment of component parts to manufacturing and final assembly, and providing shipments to customer distribution centers or end-customer delivery points. Additional value-added services, such as light assembly of components into defined units (kitting), packaging and refurbishment are also provided.
SCS business offers services relating to all aspects of a customer’s transportation network. Its team of transportation specialists provides shipment planning and execution, which includes shipment optimization, load scheduling and delivery confirmation through a series of technological and Web-based solutions. Its transportation consultants, including its freight brokerage department, focus on carrier procurement of all modes of transportation with an emphasis on truck-based transportation, rate negotiation, and freight bill audit and payment services. In addition, its SCS business provides customers, as well as its FMS and DCC businesses with capacity management services.
Dedicated contract carriage is offered both as a service and as part of an integrated supply chain solution to its customers. The DCC offerings combine the equipment, maintenance and administrative services of a service lease with drivers and additional services. Its DCC solution offers specialization to meet the needs of customers with service requirements, such as tight delivery windows, high-value or time-sensitive freight, closed-loop distribution, multi-stop shipments, specialized equipment or integrated transportation needs. The Company’s SCS business offers a variety of knowledge-based services that support every aspect of a customer’s supply chain. Its SCS professionals are available to evaluate a customer’s existing supply chain to identify inefficiencies, as well as opportunities for integration and improvement. Once the assessment is complete, it works with the customer to develop a supply chain strategy.
Dedicated Contract Carriage
The Company through its DCC business segment combines the equipment, maintenance and administrative services of a service lease with drivers and additional services. These services provide a customer with a dedicated transportation solution. Additional services include routing and scheduling, fleet sizing, safety, regulatory compliance, risk management, technology and communication systems support including on-board computers, and other technical support. At December 31, 2011, the Company had 157 DCC customer accounts in the United States. The Company’s DCC logistics specialists perform a transportation analysis using advanced logistics planning and operating tools. Based on this analysis, they formulate a logistics design that includes the routing and scheduling of vehicles.
Ryder System Inc
11690 N.W. 105TH STREET
MIAMI FL 33178-1103