Ryder System Inc. Overview

Ryder System Inc.

Solutions for transportation, logistics, and supply chain management are offered by Ryder System Inc. (Ryder).It provides commercial customers with leasing, rental, and programmed maintenance services for tractors, trucks, and trailers. Ryder offers complete transportation services, including drivers, vehicles, scheduling, and routing. Automotive, industrial, consumer packaged goods, food and beverage service, technology and healthcare, aerospace, oil and gas, transportation and warehousing, housing, business and personal services, retail, consumer brands, and the paper and publishing industries are among the industries in which the company’s services are utilized. It operates in the United States, Mexico, the United Kingdom, and Germany. The headquarters of Ryder is in Miami, Florida, US.

Jim Ryder started Ryder in 1933, hauling concrete with his Model A Ford truck. The company added a second truck in 1934 and twelve more by 1937, both rapid expansions. The company had 50 trucks in operation by 1939.

During World War II, Ryder hauled supplies for the US Army, earning more than $100,000 in 1942.The business continued to grow after the war, acquiring a UNIVAC computer in 1952 to speed up accounting and data processing and starting operations in the UK in 1971.Today, the company operates in the United States, Canada, Mexico, the United Kingdom, and Singapore, employing 33,100 people worldwide.

According to the Fortune 500 list, Ryder is ranked 395th.Since 1960, the business has traded shares on the New York Stock Exchange. It currently has a $3.45 billion market capitalization.

Ryder System Inc. Business Model

Ryder serves a diverse clientele of small to large commercial businesses in a variety of industries with transportation services and supply chain management solutions.

The following industries typically employ the company’s clients:

Food and Beverage, including companies that sell consumer packaged goods, food and beverage manufacturers, and foodservice businesses.

Transportation and warehousing, including businesses that provide transportation and delivery services, as well as fleet operators and rental companies for commercial vehicles.

Housing, which includes agents, contractors, and developers involved in the construction and development of housing.

Services for business and private use, including facilities management, leasing, logistics, outsourcing, and other service providers.

Industrial, which includes a wide range of businesses like metals companies, natural resource companies, energy companies, and industrial manufacturers.

Through its network of retail sales centers located all over North America, Ryder also sells used automobiles to individuals and small businesses.

Ryder’s main market is North America, which includes the United States, Canada, and Mexico. The United States is the company’s largest single market. Additionally, it serves customers in Europe and Asia.

Ryder System Inc. Value proposition

Customers receive value from Ryder in the following ways:

• Its standing in the industry as a dependable supplier of supply chain management solutions, as well as its history of providing effective transportation services.
• Its value-added services and innovative solutions, with the company offering a portfolio of cutting-edge solutions supported by cutting-edge technologies and complemented by a variety of ancillary services like maintenance and repair.
• Its efficiency in operation due to the company’s extensive distribution infrastructure and extensive vehicle fleet, which enable it to provide services quickly and effectively.
• It’s  technical know-how and experience, with the company employing specialists across its operating segments and a group of industry veterans.

Channels of operation

Ryder offers details about its various products and services on its website, which can be found at www.ryder.com. For its core services, the company does not appear to have an online sales channel or customer portal. However, Ryder does offer its used vehicles for sale through an online platform at www.usedtrucks.ryder.com. In addition, Ryder sells its used cars through a number of branch locations and its own network of 59 retail sales centers spread out across North America.

Ryder serves customers directly through its in-house sales force, which is organized by operating segment and geographical region. The company’s network of offices spans the United States, Canada, Mexico, Europe, and Singapore, where the company’s sales staff works. Additionally, Ryder owns and operates logistics centers in Michigan and Texas, where its specialized groups in transportation optimization and execution, contract management, freight bill audit, payment services, and carrier procurement operate.

Customer relationship

For the sale of its used cars, Ryder has an online self-service channel where customers can look at cars and express an interest in buying them without having to talk to salespeople. However, sales must be made through a company representative.

The majority of Ryder’s solutions and services are offered by its sales, support, and consulting teams. In order to guarantee that the business meets each customer’s specific requirements, these representatives collaborate closely with them. In order to establish itself as the preferred supplier of solutions for supply chain management, fleet repair and maintenance, and commercial vehicle rentals, the company strives to cultivate long-term relationships with its clients.

Customers can get in touch with Ryder’s support staff directly over the phone or through an online form to get personalized responses to their questions and concerns. Ryder offers ongoing support to its customers. Additionally, Ryder’s social media accounts, which include Facebook, LinkedIn, Twitter, Instagram, and YouTube, allow customers to directly communicate with the company.

Service distribution partners

In order to provide its customers with a service that is both effective and dependable, Ryder collaborates with a number of third-party businesses and organizations.

Among these partners are:

• Supplier and Vendor Partners, which include companies that can outsource certain functions and suppliers of tools, equipment, and services, including vehicles, that support and enhance the company’s offerings.
• Transportation and Distribution Partners, which include a variety of distributors and transportation companies that help the company expand its own distribution network and add vehicles to its fleet;
• Software and Technology Partners, which include a variety of software developers and technology firms that integrate and design functionality for the Company’s technology solutions.
• Strategic and Alliance Partners, which include a variety of businesses with whom the company shares resources and works on projects together.

Ryder has recently launched a number of partnerships, including a deal with Lincoln Tech to provide educational and training programs and a partnership with Decisiv to develop leading-edge maintenance solutions. The non-profit Soldier for Life – Transition is one of the many social and community partnerships that the business has.

Key resources

The physical infrastructure of Ryder, which includes offices and logistics centers, its supply chain and distribution channels, partnerships, and personnel, are the company’s most important resources.

Ryder leases and owns a number of properties, including offices, warehouses, logistics centers, and facilities for vehicle maintenance and repair. This mostly includes properties in North America, the United Kingdom, Germany, Mexico, China, and Singapore. The majority of these spaces, which may include a warehouse, administrative office, or repair shop, are leased.

Cost structure

Ryder incurs expenses for the acquisition and upkeep of its vehicles and equipment, including fuel purchases, the operation and upkeep of its physical logistical and administrative infrastructure, supply chain and distribution channel management, partnership management, and employee retention.

The majority of Ryder’s lease and rental costs in 2015 were related to its vehicle fleet, which accounted for $2.15 billion. The cost of fuel services was $519.84 million. Selling, general, and administrative expenses, which include professional fees and the payment of salaries and benefits to the company’s 33,100 employees, totaled 844.50 million, while cost of services amounted to $2.41 billion.

Ryder System Inc. Revenue sources

Ryder makes money by offering various solutions for supply chain management and transportation. This includes a number of business lines across its three operating segments, such as:

• Dedicated transportation services, which include revenue from the provision of individualized transportation and supply chain services.
• Commercial rental, which includes the money made by renting cars to other businesses.
• Contract maintenance, including the revenue generated by providing services for maintenance and repair
• Services related to fuel, including the money made from selling fuel to customers.
• Management of distribution facilities and the profits from designing distribution networks comprise distribution management.

Ryder’s annual revenue in 2015 was $6.57 billion, down from the company’s $6.64 billion in 2014. With $4.55 billion in revenue for the year, the Fleet Management Solutions division accounted for the majority of the company’s revenue. The Supply Chain Solutions division brought in $1.55 billion in revenue for the year, accounting for the majority of the remaining revenue for the company