Who's Who in Logistics and Supply Chain Management - Armstrong ...

Consulting Company in the Shanghai Free Trade Zone. In 2006 Ryder received a logistics license to perform integrated logistics services in
China. Its main third-party logistics (3PL) service offering includes: transportation management, value-added warehousing and distribution,
and supply chain engineering and design services. Major customers in China include: Beijing Benz, Lucent, and Italian household systems
manufacturer Merloni TermoSanitari (Merloni). Ryder China's basic operational service offering is detailed in the figure below.
At the time of our visit in mid-October, Ryder had a team of 95 people in China, eight of which were logistics engineers. It managed
226,000 square feet of warehouse space in six cities: Shanghai, Beijing, Wuxi, Changchun, Nanjing and Kunming. Ryder was also managing
domestic transportation in approximately 200 distinct lanes. This December, Ryder is starting up a new operation for a consumer
electronics/white goods customer in Shanghai that will bring its total square footage to approximately 500,000 square feet, its transportation
management network to about 250 lanes, and its total number of employees to 160. This operation is set to go live the second week of
December. In addition, Ryder is contracted to open up warehousing operations in Guangzhou, Harbin, Fuzhou, Changsha, Wuhan, and
Zhengzhou in the first quarter of the new year.
In addition to Ryder's traditional transportation management and value-added warehousing and distribution operations, Ryder China is
currently providing some interesting global transportation management services that are capable due to the time difference of 12 hours
between the eastern U.S. and Shanghai. According to Chris Woodward--Ryder's managing director for China--by using teams composed of
Ryder staff in both the U.S. and China, Ryder provides a virtual 24 hour work day making it easier to staff and support central
transportation management operations required to run 24 hours, seven days a week.
Case Study: Merloni's, Ryder Domestic China, Network Redesign and 3PL/4PL Services
With the help of i2's Supply Chain Strategist, supply chain network optimization software, forecasted demand volumes and service level
requirements, Ryder's engineers designed an optimal domestic China distribution network for Merloni's Ariston water heater product line. In
addition, Ryder worked with Merloni in developing key indicators for monitoring supply chain performance.
By utilizing Ryder's optimal network design solution and its 3PL and 4PL services, Merloni has reduced its Chinese distribution center
(DC) network from 18 to 12 Ryder managed locations. The redesign has dramatically reduced Merloni's on-hand inventory levels while
improving its transportation service and direct service area coverage to customers.
While Ryder's main Merloni central distribution center operation is in Wuxi, we had a chance to visit its 4PL Shanghai regional
distribution center (RDC) operation in the northwestern Jiading district of Shanghai.
Ryder utilizes a local 3PL (Kanto) for warehousing, including non-management labor, and Merloni's Shanghai local transportation
services. The RDC is 22,600 square feet and product is stored on pallets on the warehouse floor. Most of the water heaters are destined to
Chinese big-box retail stores such as Gome and Yolo.
To support its Chinese warehousing and distribution operations including Merloni, Ryder uses a popular local warehouse management
system--"Flux" WMS. Flux is integrated with Merloni's order management system in Wuxi. As orders are generated they drop into Flux. Flux
is used to print paper pick lists for picking in the warehouse and for putaway of product as it is received. Once product is picked and loaded
into trucks for outbound distribution, Flux is updated with the information which also automatically updates Merloni's order management
system. Through this tight integration, inventory accuracy and visibility has been dramatically improved.
Summary
Ryder has learned many lessons since entering the Chinese 3PL market with SGM. It is using its logistics engineering expertise,
information systems, and operational process design expertise to develop tier-one Chinese supply chain operations and differentiate itself
from domestic 3PL competitors. Ryder has had to be creative in its business development approach and is beginning to see significant
success. With this approach, Ryder has become established in one of the fastest growing global 3PL markets and is on track to become a
leading domestic Chinese 3PL provider.
Ryder’s World Class Automotive Logistics
Lansing & Farmington Hills, MI - Site Visits
March 15, 2006
[To view in full html format, follow this link: http://www.3plogistics.com/Ryder_3-2006.htm]
General Motors is in the fight of its life to remake itself. It needs to radically redesign its cost structure and how it makes cars. As part of
its redesign, GM is completing two new automotive assembly plants near Lansing, MI. The first plant, Lansing Grand River, is in
production building the Cadillac CTS, SRX and STS. The second plant, Lansing Delta Township, will be producing later this year. Its
production will be the Saturn Crossover, GMC Crossover and Buick Crossover.
As GM Plant Manger, Ken Knight explained it “We planned the process first and planned the building later.” The new just-in-time
facilities use no tow motors. “What really drives us is material movement,” Knight said. “We bring the whole semi truck next to where the
parts are used so we use materials right off the truck.” As a sign of the seachange at GM, the new Lansing River plant has been rated as
one of the best in the world by JD Powers.
Critical to General Motors’s success is the need for a supply chain control partner operating flow through parts sequencing centers close
to its two new plants. GM chose its longtime logistics service provider, Ryder SCS, to design and run these critical support functions.
Ryder responded by taking over a building seven miles from the Lansing Grand River plant and one mile from the new Lansing Delta
Township location. Ryder renovated the facility using a REIT plan set up by Ashley Capital Development. It is in the process of building
and designing an adjacent facility. The two connected buildings will have over 1.6 million square feet and 160+ dock doors. Inbound loads
of parts, most in returnable plastic containers, will exceed 300 a day. Outbound shuttles to the GM plants will be more than 1000 per day.
Ryder’s new location (Logistics Optimization Center) is divided into two principal operations. The southern half of the building is laid
out for sequencing parts. The northern half is for handling containers of bulk parts (nuts, bolts, screws, etc.).
There are over 30 cells operating in the sequencing area. In these cells, mirror assemblies, trunk kits, springs, fuel tanks and other parts
are setup to be delivered in production sequence order exactly as needed on the GM assembly lines. Parts are tracked continuously to insure
that assembly time windows at the GM plant are met.
Throughout Ryder, LOC scanning technology is employed with workers utilizing hand held guns. All work processes are designed to be
lean and standardized. Performance is tracked and measured.
Ryder’s employees at the LOC receive about 40 hours of training before they are certified to work in the sub assembly and sequencing
processes. Control is tight – error rates and rework are minimal. Inventory scanned in using two dimensional RF scanners as delivered and
put a way as directed. Most locations mirror locations for GM’s assembly lines. Inventory received is reconciled to advanced ship notices
(ASN’s) sent to suppliers and carriers.
16th Edition
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