Ryder Opens One-Million-Square-Foot Distribution Center for Technology Manufacturer Lexmark

Rhea-AI Summary

Ryder System, a leader in supply chain and fleet management solutions, has opened a one-million-square-foot North American distribution center for Lexmark, a global imaging and IoT solutions leader. The facility consolidates operations, streamlines shipping, and saves costs, enabling 99% same-day shipping and 99% midnight parcel pick-up with next-day air service. Ryder's technology and expertise have allowed Lexmark to stay ahead of the curve in the rapidly changing supply chain environment.

Insights

Supply Chain Management Expert

The opening of Ryder System, Inc.'s new distribution center for Lexmark represents a significant enhancement in supply chain efficiency. The consolidation of two operations into a single one-million-square-foot facility is a strategic move. It is expected to result in improved logistics performance, such as 99% same-day shipping and next-day air service, which could lead to increased customer satisfaction and potentially boost retention rates. The streamlined process for customization and refurbishment of equipment could also enhance Lexmark's product lifecycle management, contributing to sustainability efforts and cost savings.

Additionally, the implementation of RyderShareTM, a digital platform, is an innovative step towards transparency and efficiency in the supply chain. Real-time visibility and collaborative problem-solving facilitated by this platform could lead to reduced delays and cost savings. These improvements in supply chain management are likely to be reflected in financial performance, potentially improving profit margins through operational efficiencies.

Financial Analyst

The strategic location of the new facility in Jeffersonville, Indiana, is a calculated decision that could reduce outbound shipping costs and improve two-day transit times. For investors, these operational efficiencies are likely to translate into lower operational expenses and enhanced competitiveness in pricing. The cost savings mentioned, such as the $1 million in annual savings already achieved through transportation management, are critical data points indicating the potential for positive impacts on the bottom line.

Moreover, Ryder's proven track record of 98% sustained on-time performance with its carriers suggests a reliable and effective logistics operation. This reliability, combined with the new facility's capabilities, could improve Lexmark's market position and shareholder value in the long run.

Market Research Analyst

Considering the competitive landscape of the imaging and IoT solutions sector, Lexmark's partnership with Ryder and the opening of the new distribution center could strengthen its market position. The enhanced supply chain capabilities and efficiencies may serve as a differentiator against competitors, potentially leading to increased market share. The ability to offer same-day shipping and next-day air service aligns with the growing customer expectations for rapid delivery in today's e-commerce-driven economy.

The use of advanced analytics tools within RyderShareTM could provide Lexmark with valuable insights for future strategic decisions, enabling the company to adapt more quickly to market changes and consumer demands. These advancements may contribute to a more resilient and agile business model, which is particularly important given the dynamic nature of the technology sector.

Consolidates and streamlines operations, speeds shipping times, and saves costs

MIAMI--(BUSINESS WIRE)-- Ryder System, Inc. (NYSE: R), a leader in supply chain, dedicated transportation, and fleet management solutions, announces the opening of a one-million-square-foot North American distribution center for Lexmark, a global imaging and IoT solutions leader. The new, purpose-built facility consolidates two Lexmark operations into one, streamlining the receiving and shipping of printers and copiers, toner cartridges, and spare parts for a more efficient customer order fulfillment process.

Ryder opens new, one-million-square foot North American distribution center for Lexmark, a global imaging and IoT solutions leader, in Jeffersonville, Indiana. The facility consolidates two operations into one, streamlining receiving and shipping for a more efficient customer order fulfillment process. (Photo: Business Wire)

Strategically located in Jeffersonville, Indiana – just across the river from Louisville, Kentucky, a crossroads of river, road, rail, and runway – Lexmark’s new centralized facility enables 99% same-day shipping and 99% midnight parcel pick-up with next-day air service. It also streamlines the customization, configuration, return, refurbishment, and recertification of equipment, while saving costs.

“Lexmark’s business is time critical, so equipment handling and transit time is a primary concern, as is keeping costs competitive,” says Norm Brouillette, senior vice president of supply chain for Ryder. “With that in mind, we conducted a network analysis considering markets served, shipping volumes and times, transport costs, nearby ports, real estate prices, and the labor market. It pointed to one ideal location that would provide Lexmark with both a reduction in total outbound shipping cost and an improvement in two-day transit – not to mention the added ability to provide same-day shipping and next-day air.”

Also key to the customized solution is the implementation of RyderShare^TM, a digital platform that enables everyone involved in moving goods through supply chains – including shippers, receivers, carriers, and service providers – to see across the supply chain in real time and work together to prevent costly delays and find efficiency gains. It also incorporates best-in-class business intelligence tools combined with a proprietary analytics solution to inform future decisions, prepare supply chains for unexpected events, and speed recovery from disruptions.

“Ryder brings the technology, solutions, and expertise we need to stay ahead of the curve in this rapidly changing supply chain environment,” says Billy Spears, senior vice president and chief product delivery officer for Lexmark. “We’ve enjoyed a 14-year relationship with Ryder’s transportation management team, so when we started looking for a new supply chain partner that could keep us on the path of continuous improvement and innovation, it was a natural evolution to expand our relationship with Ryder to include their supply chain solutions.”

Ryder provides distribution management; returns handling; equipment restoration and redistribution, including repairing returned hardware, recertifying it, and returning it to stock; bundling hardware and supplies; and customization, such as adding options, software updates, and customer-setting configurations.

Since 2009, Ryder has provided Lexmark with comprehensive transportation management solutions, including network design with built-in continuous improvement, carrier procurement and management, shipment planning and execution, and cross-border operations between the United States, Canada, and Mexico – resulting in $1 million in annual savings and greater than 98% sustained on-time performance with Ryder’s qualified carriers.

About Ryder System, Inc.

Ryder System, Inc. (NYSE: R) is a leading logistics and transportation company. It provides supply chain, dedicated transportation, and fleet management solutions, including warehousing and distribution, e-commerce fulfillment, last-mile delivery, managed transportation, professional drivers, freight brokerage, full-service leasing, maintenance, commercial truck rental, and used vehicle sales to some of the world’s most-recognized brands. Ryder provides services throughout the United States, Mexico, and Canada. In addition, Ryder manages nearly 260,000 commercial vehicles and operates approximately 300 warehouses encompassing more than 95 million square feet. Ryder is regularly recognized for its industry-leading practices in third-party logistics, technology-driven innovations, commercial vehicle maintenance, environmental stewardship, corporate social responsibility, world-class safety and security programs, military veteran recruitment initiatives, and the hiring of a diverse workforce. www.ryder.com

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.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20240109133094/en/

Anne Hendricks, amhendricks@ryder.com

Amy Federman, afederman@ryder.com

Source: Ryder System, Inc.

FAQ

What is the name of the company mentioned in the press release and its ticker symbol?

The company mentioned is Ryder System, Inc. and its ticker symbol is R.

Where is the new distribution center located?

The new distribution center is located in Jeffersonville, Indiana, just across the river from Louisville, Kentucky.

What are the benefits of the new facility for Lexmark?

The new facility enables 99% same-day shipping, 99% midnight parcel pick-up with next-day air service, and streamlines the customization, configuration, return, refurbishment, and recertification of equipment while saving costs.

What technology has Ryder implemented to improve supply chain efficiency?

Ryder has implemented RyderShareTM, a digital platform that enables real-time visibility across the supply chain and incorporates business intelligence tools and proprietary analytics solutions to inform future decisions and speed recovery from disruptions.

What services does Ryder provide to Lexmark?

Ryder provides distribution management, returns handling, equipment restoration and redistribution, bundling hardware and supplies, and customization.