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Ryder's Transportation Management Engine...Quiet, Smooth Running, Powerful
Ryder TMC - Fort Worth, Texas USA
April 6, 2009
By
Richard Armstrong
Key Personnel:
Todd Carter, Vice President &
General Manager
David Belter, Group Director
Robert Houston, Director –
Transportation
John Tullis, Senior Director –
Corporate Development
Ryder’s transportation
management (TM) capabilities have matured into a high quality vehicle for supply
chain solutions. The driver is Todd Carter, vice president and general manager
of global transportation management. The course designer is John Williford,
president of global supply chain solutions. The pit crew consists of a dozen
key vertical and functional leaders.
Ryder’s TM operations are
headquartered in Novi, MI and Fort Worth, TX. Novi evolved as a freight bill
payment and transportation center for Ryder’s strong automotive logistics
offering.¹
The Fort Worth transportation management center (TMC) has added a
lot more horsepower and maneuverability.
The Fort Worth TMC is a well
designed “tower control” operating environment. The building is painlessly
functional. The main floor (control center) is perfectly lit, quiet and
comfortable. It doesn’t feel at all like there are over 200 people at work.
The TMC is a 24/7 operation
supported by 35 English speakers in Nanjing, China who are significantly
involved in 2nd
and 3rd
shift coverage. Nanjing has a series of universities and proportionately more
fluent English speakers than other cities in the PRC.
The functional areas at the TMC
are order management, planning and optimization, entity (rate library)
management and event management. Order management handles 2.8 million orders a
year. Eighty percent of orders are received by EDI. Twenty percent are entered
at web-based Ryder Entry or transmitted as XML flat files to Ryder’s
transportation management system (TMS) tool kit. USPS is a major user of the
latter. Paul Booth’s order management operation primarily deals in correcting
exceptions. Some accounts require tweaking of up to 15% of shipments. Other
large EDI accounts like Boeing only have 1–2% of orders that require manual
modification.
Order management sends orders
to Leslie Mandrell’s planning and optimization section. All orders are
optimized using i2 Technologies Transportation Optimizer. Less-than-truckload (LTL)
shipments are converted into multiple stop truckloads. End-to-end matches are
made of truckloads. Yearly, 2.8 million orders are consolidated into 850,000
loads (3.3 shipments per load).
Optimized results rely on the
rate library/contract information of Kathryn Cunningham’s entity management.
Cunningham’s database is essential for transportation planning, execution and
Novi’s freight bill payment operations. A total of 14,500 carrier rate
“tariffs” are maintained.
Optimized and individual
shipments are tendered to carriers using i2’s Transportation Manager. Carrier
acceptance is handled electronically by Ryder’s proprietary “Power Tracker”.
This software modification significantly assists Kathy Moore’s event management
section. This section handles most of the transportation exceptions. Each of
its exception managers cover about 250 loads a day. Ryder’s TMS operations provide dashboards with extensive key
performance indicator (KPI) information and tracking capabilities for customers
and truckers. Standard carrier KPIs cover on-time performance, tender
acceptance, update activity and daily summaries.
Overall, the freight under
management (FUM) process works very smoothly. At most times it is like a well
made car operating on cruise control. In addition to the FUM operations at the
TMC, Ryder has built a significant freight brokerage operation. Ruth Lopez’s
operation now handles 100 loads a day and is expanding its backhaul management
for Ryder’s dedicated contract carriage (DCC) operations. There are 18 people
in Lopez’s operation split between customer service and dispatch/truck
handlers. Lopez and the employees in Ryder’s brokerage were trained at the TMC.
Margins are similar to industry averages. Most loads move in vans but there is
refrigerated trailer and flatbed activity.
The smoothness and efficiency
of Ryder’s TMS operation is exactly what Todd Carter wants. Carter has been at
Ryder for a little over two years. He has fine tuned the operation to its world
class capabilities. We met Carter at GATX over a decade ago. He was a key
member of Joe Nicosia’s (Hope is not a plan!) team. Complimenting Carter’s
efforts is John Williford and his master plan for Ryder. Williford is retooling
Ryder’s Supply Chain Solutions and Dedicated Contract Carriage Divisions to
concentrate on strong operational strengths and provide crafted but generally
uniform solutions for customers in retail/consumer goods, high-tech and
automotive verticals. The retail emphasis is new to Ryder and is a logical
reworking of its powerful automotive manufacturing and transportation supply
chain support functions.
Profitable but non-strategic,
problematic operations in Argentina, Brazil and Chile have been eliminated in
favor of strengthening North American and Asian operations. CRSA Logistics and
its sister consolidation/deconsolidation company, TCTL, were added to handle
Asia to
Canada retail supply chain solutions. These operations are based in Shanghai
and come with a good IT base which allows for expansion. In Shanghai, Paul Tay
is crafting the plan for Ryder’s Asian expansion. This Asian/North American
expansion is a major piece of Ryder’s retail vertical development.
Expanding Mexican operations is
also in process. Ryder handles about 3,800 border crossings a week between
Mexico and the U.S. Mexican/U.S. operations are key to automotive, high-tech
and other Ryder customers. Within Mexico, Ryder has solid value-added
warehousing and distribution (VAWD) and DCC operations and over $100 million in
revenues. It is a strong base to build on.
Williford has charged his six
primary direct reports with the development of proactive, quickly implementable,
Lean solutions. Williford’s reports are key for expanding the new supply chain
management offerings. They are:
Tom Jones, Senior
Vice President & General Manger
Stephen Dean,
Senior Vice President – Sales & Marketing
Steve Martin, Vice
President – Supply Chain Excellence
Paul Tay, Vice
President & Managing Director –
Asia Pacific
Gene Sevilla, Vice
President & Managing Director –
Latin America
Guy Tokso, Vice
President – Canadian Operations
Williford has a history of
cutting edge solutions for high profile customers like GM (Vector) and USPS. He
is not afraid to think outside the box and cut to the chase. He has put
together a strong team for driving the change at Ryder and increasing
third-party logistics competition.
¹See
the Armstrong & Associates report "Ryder Streamlines Transportation
Procurement..." from October 2, 2008.
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Logistics, TCTL, Retail Logistics, Mexican Border Crossings, Canada, Lean, GM,
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Global Supply Chain Manager, Transportation Management, Ryder Entry, TMS, i2
Technologies, USPS, Freight Bill Payment, Power Tracker, GATX, Suppy Chain
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Logistics, Mexican Border Crossings, Canada, Lean, GM, 3PL, Logistics, Armstrong
& Associates, Logistics Provider, Site Visit, Ryder, Global Supply Chain
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Contract Carriage, DCC, CRSA Logistics, TCTL, Retail Logistics, Mexican Border
Crossings, Canada, Lean, GM, 3PL, Logistics, Armstrong & Associates, Logistics
Provider, Site Visit, Ryder, Global Supply Chain Manager, Transportation
Management, Ryder Entry, TMS, i2 Technologies, USPS, Freight Bill Payment, Power
Tracker, GATX, Suppy Chain Solutions, Dedicated Contract Carriage, DCC, CRSA
Logistics, TCTL, Retail Logistics, Mexican Border Crossings, Canada, Lean, GM,
3PL, Logistics, Armstrong & Associates, Logistics Provider, Site Visit, Ryder,
Global Supply Chain Manager, Transportation Management, Ryder Entry, TMS, i2
Technologies, USPS, Freight Bill Payment, Power Tracker, GATX, Suppy Chain
Solutions, Dedicated Contract Carriage, DCC, CRSA Logistics, TCTL, Retail
Logistics, Mexican Border Crossings, Canada, Lean, GM, 3PL, Logistics, Armstrong
& Associates, Logistics Provider, Site Visit, Ryder, Global Supply Chain
Manager, Transportation Management, Ryder Entry, TMS, i2 Technologies, USPS,
Freight Bill Payment, Power Tracker, GATX, Suppy Chain Solutions, Dedicated
Contract Carriage, DCC, CRSA Logistics, TCTL, Retail Logistics, Mexican Border
Crossings, Canada, Lean, GM, 3PL, Logistics, Armstrong & Associates, Logistics
Provider, Site Visit, Ryder, Global Supply Chain Manager, Transportation
Management, Ryder Entry, TMS, i2 Technologies, USPS, Freight Bill Payment, Power
Tracker, GATX, Suppy Chain Solutions, Dedicated Contract Carriage, DCC, CRSA
Logistics, TCTL, Retail Logistics, Mexican Border Crossings, Canada, Lean, GM,
3PL, Logistics, Armstrong & Associates, Logistics Provider, Site Visit, Ryder,
Global Supply Chain Manager, Transportation Management, Ryder Entry, TMS, i2
Technologies, USPS, Freight Bill Payment, Power Tracker, GATX, Suppy Chain
Solutions, Dedicated Contract Carriage, DCC, CRSA Logistics, TCTL, Retail
Logistics, Mexican Border Crossings, Canada, Lean, GM, 3PL, Logistics, Armstrong
& Associates, Logistics Provider, Site Visit, Ryder, Global Supply Chain
Manager, Transportation Management, Ryder Entry, TMS, i2 Technologies, USPS,
Freight Bill Payment, Power Tracker, GATX, Suppy Chain Solutions, Dedicated
Contract Carriage, DCC, CRSA Logistics, TCTL, Retail Logistics, Mexican Border
Crossings, Canada, Lean, GM, 3PL, Logistics, Armstrong & Associates, Logistics
Provider, Site Visit, Ryder, Global Supply Chain Manager, Transportation
Management, Ryder Entry, TMS, i2 Technologies, USPS, Freight Bill Payment, Power
Tracker, GATX, Suppy Chain Solutions, Dedicated Contract Carriage, DCC, CRSA
Logistics, TCTL, Retail Logistics, Mexican Border Crossings, Canada, Lean, GM,
3PL, Logistics, Armstrong & Associates, Logistics Provider, Site Visit, Ryder,
Global Supply Chain Manager, Transportation Management, Ryder Entry, TMS, i2
Technologies, USPS, Freight Bill Payment, Power Tracker, GATX, Suppy Chain
Solutions, Dedicated Contract Carriage, DCC, CRSA Logistics, TCTL, Retail
Logistics, Mexican Border Crossings, Canada, Lean, GM... |
