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FLEET LEASING & MAINTENANCE | DEDICATED TRANSPORTATION | SUPPLY CHAIN SOLUTIONS
S P E C I A L R E P O R T
DELIVERING ON THE
CUSTOMER PROMISE:
Partnering for Supply Chain Success with
and
Disruptive forces such as sophisticated
technology, onerous regulations, talent
shortages, and infrastructure bottlenecks
continue to be the prime focus for supply
chain executives and managers. Coupled
with meeting the rising demands of more
digitally savvy customers, the supply
chain landscape is evolving at an
exponential rate.
While these challenges threaten to
change the rules of the supply chain
world, overcoming them to meet rising
consumer demands has led to an
increased need for visibility and control
in all supply chain activities – from
warehousing to transportation – to
ensure optimization. The companies that
adapt to beat these disruptions will more
than likely come out ahead.
One approach more companies are
turning to in order to achieve their
goals is collaborating with a third-party
logistics provider (3PL). During the
Delivering on the Customer Promise
panel at the Council of Supply Chain
Management Professionals (CSCMP)
conference in September, 2016,
attendees heard executives from True
Value, FRAM, and Ryder speak about
how their partnerships help overcome
many of the challenges companies
face today.
“Around the industry you hear a common
theme of ‘focus on your expertise’,” says
Steve Sensing, President of Supply Chain
Solutions at Ryder. “With our experience,
we bring to the table best practices
from a broad set of customers, which
is a unique opportunity. This allows us
to partner with companies, provide
them the visibility to be able to respond
to challenges, and create a positive
experience with their customer base.”
To meet increasing customer demands,
supply chain costs are on an upward
trajectory. The goal for executives is to
get ahead of the cost curve, leverage
partnerships, and turn their supply
chains into a differentiator.
2
FRAM & RYDER
By the Numbers
99.8%
pick accuracy
100%
productivity
increase
0.03%
inventory
shrinkage
Improved
average Units
Per Man Hour
(UPH) from 33 to
68
“ As leaders in the industry, we have to
think outside the box on how to become
more efficient and get our products to
customers when they want it. ”
– Steven Crowthers, Director of 		
	 Distribution North America, FRAM
“ When you have transparency and
collaboration you really open up the
relationship to success. It strengthens the
power of the two companies and what
we can do together for the customers. ”
– Steve Sensing, President Supply Chain 	
	 Solutions, Ryder
“We live in a time of escalating
expectations,” says Abhinav Shukla,
Senior Vice President and Chief Operating
Officer at True Value. “Retailers expect a
48-hour fill rate. This puts stress on just-
in-time delivery and high order accuracy.
These are the table stakes. We are
pressured to be more effective through
our supply chain.”
True Value and Ryder’s partnership spans
more than four decades. The relationship
began in the late 1970’s when True
Value leased vehicles from Ryder,
which also performed maintenance
on all the equipment. The partnership
expanded in 2015 with Ryder Dedicated
Transportation Solutions managing the
transportation services at 10 of True
Value’s 12 Distributions Centers (DCs),
the remaining two will transition by
the end of 2016. The new agreement
converted True Value’s fleet of leased
vehicles to a dedicated fleet that includes
driver management, routing, and
scheduling services.
“With Ryder, we find the complexity of
managing the details much easier than
if we were running the fleet ourselves,”
Shukla says.
No industry is immune from the pressure
of disruptive supply chain trends. From
retail to consumer packaged goods
to technology and automotive, these
challenges are causing executives to
re-evaluate their operations.
“Because of the pressure, there is more
complexity,” Steven Crowthers, Director
of Distribution at FRAM, says. “This adds
to costs. We need to be innovative. That
is where strategic partnerships come into
play. Ryder taught us what they are
best at.”
3
TRUE VALUE & RYDER
By the Numbers
Reduced fuel
consumption with
improved IT route
engineering
Improved shipping
speed, reliability, and
delivery quality
95.4%
service level
in 2015
180+
tractors
upgraded
in 2015
99.7%
order accuracy
“ We approach every relationship with
the spirit of continuous improvement.
We take the trust we have developed
and embark on a journey that continual
optimizes the network, driving more
value for our partners. ”
– John Diez, President, Dedicated 		
	 Transportation Solutions, Ryder
“ One of the key threads in our
partnership has always been problem
solving. When we approached Ryder
about one of our biggest challenges
being scheduling deliveries, we came up
with a solution that we have had great
reception on from our retailers. It’s an
excellent example of a strong partnership
with the key pillars of problem solving,
collaboration, and open honest
communication at all times. ”
– Abhinav Shukla, Vice President and 	
	 Chief Operating Officer, True Value
In 2013, FRAM partnered with Ryder to implement a LEAN
supply chain solution in its 710,000 square foot DC in Hebron,
Kentucky. The DC fills an average of 900 orders per day, which
is about 30 truckload shipments.
Through collaboration, FRAM and Ryder have created a culture
of continuous improvement that engages and empowers the
workforce, while ensuring a more effective distribution and
operations process.
“Omni-channel has changed the landscape of the industry,”
Crowthers said. “We needed transparency and the ability to
be flexible. We have that with Ryder.”
According to Armstrong & Associates, approximately 11
percent of U.S. logistics spend in 2015 was outsourced to
3PLs. The U.S. 3PL market has grown by roughly seven percent
annually since 2009, driven by an increase in the outsourcing
of both core and noncore logistic activities.
By outsourcing their operations to Ryder, True Value and FRAM
were able to drive more value from their supply chains while
being able to put a more concentrated focus into their core
competencies. According to Shukla and Crowthers, this is
possible because of the collaborative nature of the teams.
“We are in the ‘Now’ economy and consumer behavior
continues to evolve,” Shukla said. “No trend in recent history
has made more demands on a company’s supply chain.
Our relationship [with Ryder] is open and honest. We have
made improvements and evolve to create continuous
improvement opportunities.”
“Ryder works with us, and we are one unit. Their goal is our
goal.” Crowthers added. “In our distribution center, you cannot
tell a Ryder employee from a FRAM employee.”
Both partnerships have achieved increases in flexibility,
visibility, and talent management. In the case of FRAM, they
have seen a seven-figure decrease in costs year-over-year.
True Value, has achieved 97.5 percent fill rates and 99.7
percent accuracy on all orders.
According to the CSCMP State of Logistics Report, developing
robust relationships – like True Value and FRAM have
with Ryder – is key for profitable and sustainable growth.
The current environment is giving way to a collaborative,
interactive, design-based approach.
“Supply chains are becoming a differentiator,” said John Diez,
President of Dedicated Transportation Solutions at Ryder.
“More and more companies are looking to outsource. We
take our experience and leverage it to create an advantage
for companies and to drive value in their supply chains.”
4
www.ryder.com
Ryder and the Ryder logo are registered trademarks of Ryder System, Inc.
© 2016 Ryder System, Inc. Ever better is a trademark of Ryder System, Inc.
PT138625 102416
About FRAM
FRAM Filtration manufactures and markets a variety of quality oil, air and fuel filters, as well as
many automotive accessories such as PCV valves, crankcase filters and transmission modulators.
FRAM Filtration employs state-of-the-art process control and automated inspection equipment to
assure that products are made on time and meet rigorous internal and customer requirements.
Some plants have also earned a number of quality certifications including ISO 14001 and ISO/QS
9000. Today, FRAM is known as America’s number one oil filter brand.
About True Value Company
True Value Company, headquartered in Chicago, is one of the world’s largest retailer-owned
wholesale hardware cooperatives with gross billings of over $2.0 billion and revenue of $1.5 billion
in 2014. The True Value cooperative includes approximately 4,400 independent retailer locations
worldwide operating under the store identities of True Value, Grand Rental Station, Taylor Rental,
Party Central, Home & Garden Showplace, and Induserve Supply. Additional information on True
Value and its retail identities is available at www.truevaluecompany.com.
About Ryder
Ryder is a FORTUNE 500® commercial fleet management, dedicated transportation, and supply
chain solutions company. Ryder’s stock (NYSE:R) is a component of the Dow Jones Transportation
Average and the Standard & Poor’s 500 Index. Ryder has been named among FORTUNE’s World’s
Most Admired Companies, and has been recognized for its industry-leading practices in third-party
logistics, environmentally-friendly fleet and supply chain solutions, and world-class safety and
security programs. For more information, visit www.ryder.com.

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CSCMP Special Report FINAL

  • 1. FLEET LEASING & MAINTENANCE | DEDICATED TRANSPORTATION | SUPPLY CHAIN SOLUTIONS S P E C I A L R E P O R T DELIVERING ON THE CUSTOMER PROMISE: Partnering for Supply Chain Success with and
  • 2. Disruptive forces such as sophisticated technology, onerous regulations, talent shortages, and infrastructure bottlenecks continue to be the prime focus for supply chain executives and managers. Coupled with meeting the rising demands of more digitally savvy customers, the supply chain landscape is evolving at an exponential rate. While these challenges threaten to change the rules of the supply chain world, overcoming them to meet rising consumer demands has led to an increased need for visibility and control in all supply chain activities – from warehousing to transportation – to ensure optimization. The companies that adapt to beat these disruptions will more than likely come out ahead. One approach more companies are turning to in order to achieve their goals is collaborating with a third-party logistics provider (3PL). During the Delivering on the Customer Promise panel at the Council of Supply Chain Management Professionals (CSCMP) conference in September, 2016, attendees heard executives from True Value, FRAM, and Ryder speak about how their partnerships help overcome many of the challenges companies face today. “Around the industry you hear a common theme of ‘focus on your expertise’,” says Steve Sensing, President of Supply Chain Solutions at Ryder. “With our experience, we bring to the table best practices from a broad set of customers, which is a unique opportunity. This allows us to partner with companies, provide them the visibility to be able to respond to challenges, and create a positive experience with their customer base.” To meet increasing customer demands, supply chain costs are on an upward trajectory. The goal for executives is to get ahead of the cost curve, leverage partnerships, and turn their supply chains into a differentiator. 2 FRAM & RYDER By the Numbers 99.8% pick accuracy 100% productivity increase 0.03% inventory shrinkage Improved average Units Per Man Hour (UPH) from 33 to 68 “ As leaders in the industry, we have to think outside the box on how to become more efficient and get our products to customers when they want it. ” – Steven Crowthers, Director of Distribution North America, FRAM “ When you have transparency and collaboration you really open up the relationship to success. It strengthens the power of the two companies and what we can do together for the customers. ” – Steve Sensing, President Supply Chain Solutions, Ryder
  • 3. “We live in a time of escalating expectations,” says Abhinav Shukla, Senior Vice President and Chief Operating Officer at True Value. “Retailers expect a 48-hour fill rate. This puts stress on just- in-time delivery and high order accuracy. These are the table stakes. We are pressured to be more effective through our supply chain.” True Value and Ryder’s partnership spans more than four decades. The relationship began in the late 1970’s when True Value leased vehicles from Ryder, which also performed maintenance on all the equipment. The partnership expanded in 2015 with Ryder Dedicated Transportation Solutions managing the transportation services at 10 of True Value’s 12 Distributions Centers (DCs), the remaining two will transition by the end of 2016. The new agreement converted True Value’s fleet of leased vehicles to a dedicated fleet that includes driver management, routing, and scheduling services. “With Ryder, we find the complexity of managing the details much easier than if we were running the fleet ourselves,” Shukla says. No industry is immune from the pressure of disruptive supply chain trends. From retail to consumer packaged goods to technology and automotive, these challenges are causing executives to re-evaluate their operations. “Because of the pressure, there is more complexity,” Steven Crowthers, Director of Distribution at FRAM, says. “This adds to costs. We need to be innovative. That is where strategic partnerships come into play. Ryder taught us what they are best at.” 3 TRUE VALUE & RYDER By the Numbers Reduced fuel consumption with improved IT route engineering Improved shipping speed, reliability, and delivery quality 95.4% service level in 2015 180+ tractors upgraded in 2015 99.7% order accuracy “ We approach every relationship with the spirit of continuous improvement. We take the trust we have developed and embark on a journey that continual optimizes the network, driving more value for our partners. ” – John Diez, President, Dedicated Transportation Solutions, Ryder “ One of the key threads in our partnership has always been problem solving. When we approached Ryder about one of our biggest challenges being scheduling deliveries, we came up with a solution that we have had great reception on from our retailers. It’s an excellent example of a strong partnership with the key pillars of problem solving, collaboration, and open honest communication at all times. ” – Abhinav Shukla, Vice President and Chief Operating Officer, True Value
  • 4. In 2013, FRAM partnered with Ryder to implement a LEAN supply chain solution in its 710,000 square foot DC in Hebron, Kentucky. The DC fills an average of 900 orders per day, which is about 30 truckload shipments. Through collaboration, FRAM and Ryder have created a culture of continuous improvement that engages and empowers the workforce, while ensuring a more effective distribution and operations process. “Omni-channel has changed the landscape of the industry,” Crowthers said. “We needed transparency and the ability to be flexible. We have that with Ryder.” According to Armstrong & Associates, approximately 11 percent of U.S. logistics spend in 2015 was outsourced to 3PLs. The U.S. 3PL market has grown by roughly seven percent annually since 2009, driven by an increase in the outsourcing of both core and noncore logistic activities. By outsourcing their operations to Ryder, True Value and FRAM were able to drive more value from their supply chains while being able to put a more concentrated focus into their core competencies. According to Shukla and Crowthers, this is possible because of the collaborative nature of the teams. “We are in the ‘Now’ economy and consumer behavior continues to evolve,” Shukla said. “No trend in recent history has made more demands on a company’s supply chain. Our relationship [with Ryder] is open and honest. We have made improvements and evolve to create continuous improvement opportunities.” “Ryder works with us, and we are one unit. Their goal is our goal.” Crowthers added. “In our distribution center, you cannot tell a Ryder employee from a FRAM employee.” Both partnerships have achieved increases in flexibility, visibility, and talent management. In the case of FRAM, they have seen a seven-figure decrease in costs year-over-year. True Value, has achieved 97.5 percent fill rates and 99.7 percent accuracy on all orders. According to the CSCMP State of Logistics Report, developing robust relationships – like True Value and FRAM have with Ryder – is key for profitable and sustainable growth. The current environment is giving way to a collaborative, interactive, design-based approach. “Supply chains are becoming a differentiator,” said John Diez, President of Dedicated Transportation Solutions at Ryder. “More and more companies are looking to outsource. We take our experience and leverage it to create an advantage for companies and to drive value in their supply chains.” 4
  • 5. www.ryder.com Ryder and the Ryder logo are registered trademarks of Ryder System, Inc. © 2016 Ryder System, Inc. Ever better is a trademark of Ryder System, Inc. PT138625 102416 About FRAM FRAM Filtration manufactures and markets a variety of quality oil, air and fuel filters, as well as many automotive accessories such as PCV valves, crankcase filters and transmission modulators. FRAM Filtration employs state-of-the-art process control and automated inspection equipment to assure that products are made on time and meet rigorous internal and customer requirements. Some plants have also earned a number of quality certifications including ISO 14001 and ISO/QS 9000. Today, FRAM is known as America’s number one oil filter brand. About True Value Company True Value Company, headquartered in Chicago, is one of the world’s largest retailer-owned wholesale hardware cooperatives with gross billings of over $2.0 billion and revenue of $1.5 billion in 2014. The True Value cooperative includes approximately 4,400 independent retailer locations worldwide operating under the store identities of True Value, Grand Rental Station, Taylor Rental, Party Central, Home & Garden Showplace, and Induserve Supply. Additional information on True Value and its retail identities is available at www.truevaluecompany.com. About Ryder Ryder is a FORTUNE 500® commercial fleet management, dedicated transportation, and supply chain solutions company. Ryder’s stock (NYSE:R) is a component of the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. Ryder has been named among FORTUNE’s World’s Most Admired Companies, and has been recognized for its industry-leading practices in third-party logistics, environmentally-friendly fleet and supply chain solutions, and world-class safety and security programs. For more information, visit www.ryder.com.