Co-Location Solution Integrates Reverse and Forward Logistics
Activities to Deliver Increased Velocity, Visibility and Savings
MIAMI--(BUSINESS WIRE)--
Ryder System, Inc. (NYSE:R), a leader in supply chain, warehousing, and
transportation management solutions, today announced the expansion of
its reverse logistics capability to include a co-location solution. The
new offering integrates forward and reverse logistics in the same
facility to further optimize the returns process and drive greater value
recovery of returned assets. By co-locating the distribution management
of finished goods with returns processes such as technical repair,
refurbishment, and repackaging in the same facility, this solution
offers companies the ability to achieve greater speed to shelf,
visibility, and cost-savings.
Ryder’s reverse logistics capability consists of a full suite of
integrated reverse logistics and IT solutions to handle the management
of returned goods from end to end. These solutions include initiation of
return materials authorization (RMA); product sorting; credit
reconciliation; triage and functional testing; technical repair; parts
reclamation; scrap, disposal, and recycling; and packaging/kitting. A
Web-based portal supports return materials authorization (RMA)
initiation, validation, and serial number control tracking and provides
visibility for each step in the returns process at the serial number and
SKU level.
“Achieving greater visibility, velocity, and value recovery for returned
assets are three of the greatest drivers for a robust reverse logistics
network,” said Steve Sensing, Vice President and General Manager of
Hi-Tech/Electronics for Ryder Supply Chain Solutions. “This expansion of
our reverse logistics capability ties directly into our strategic
initiative of providing flexible, proactive solutions and best-in-class
operational execution to offer greater value to our customers.”
Companies’ reverse logistics networks are often composed of multiple
service providers due to the complexity of the returns process, which
includes logistics, depot repair, sales/marketing of refurbished
products, finance, customer service, and channel management. The piecing
together of service providers to handle the full returns management
process reduces product visibility and speed. Several existing high-tech
customers who are leveraging Ryder’s co-location strategy have already
been able to benefit from lower administrative costs, fewer
transportation miles, lower fuel costs, and improved visibility and
control throughout the product lifecycle while achieving faster
processing speed.
“In certain industries such as high-tech and consumer electronics, where
product lifecycles are short and returned products must be sent back to
market quickly, a co-located solution represents a significant
opportunity for value recovery and cost-savings,” said Mr. Sensing. “At
Ryder, more than 65 percent of the returned products we handle for our
high-tech and consumer electronics customers are reported as ‘no trouble
found.’ These are products that could be easily repackaged and sent back
to inventory to support warranty exchange programs and/or re-marketing,
among other strategies. A solution that speeds this process will offer
the greatest value to the customer.”
An efficient returns management process can also play a critical role in
meeting corporate sustainability goals. Some companies have
zero-landfill goals and strive to work with a logistics partner that can
provide proper recycling and disposal of returned products. A
co-location strategy further supports carbon footprint reduction and
corporate sustainability goals through fewer transportation miles, lower
vehicle fuel consumption, and lower building carbon output. A more agile
supply chain also decreases product obsolescence and reduces total
inventory levels.
“The synergies between reverse logistics and corporate sustainability
are undeniable,” added Mr. Sensing. “An effective reverse logistics
strategy is actually the ultimate recycling process.”
About Ryder
Ryder is a FORTUNE 500® commercial transportation, logistics and supply
chain management solutions company. Ryder’s stock (NYSE:R) is a
component of the Dow Jones Transportation Average and the Standard &
Poor’s 500 Index. Inbound Logistics magazine has recognized Ryder
as a top third party logistics provider and included Ryder in its 2011
and 2010 “Green Partners” listing. Ryder has also been ranked two years
in a row as one of the top 250 U.S. companies in the Newsweek
Green Rankings. In addition, Security Magazine has named Ryder
one of the top companies for security practices in the transportation,
logistics, supply chain, and warehousing sector. Ryder is a proud member
of the American Red Cross Annual Disaster Giving Program, supporting
national and local disaster preparedness and response efforts. For more
information, visit www.ryder.com
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Note Regarding Forward-Looking Statements: Certain statements
and information included in this news release are
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on our current plans and expectations and are
subject to risks, uncertainties and assumptions. Accordingly,
these forward-looking statements should be evaluated with consideration
given to the many risks and uncertainties that could cause actual
results and events to differ materially from those in the
forward-looking statements including those risks set forth in our
periodic filings with the Securities and Exchange Commission. New
risks emerge from time to time. It is not possible for management
to predict all such risk factors or to assess the impact of such risks
on our business. Accordingly, we undertake no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.
Source: Ryder System, Inc.