Ryder rolls out reverse logistics-based co-location offering
December 08, 2011
Freight transportation and logistics services provider Ryder System recently made enhancements to its reverse logistics services by rolling out what it said is a co-location solution.
According to company officials, this new offering integrates forward and reverse logistics into the same facility to further optimize the returns process and drive greater value recovery of returned assets. And they added that by co-locating the distribution management of furnished goods with returns processes like technical repair, refurbishment, and packaging under the same roof, this offering provides shippers with the ability to achieve greater speed to shelf, visibility, and cost savings.
“Ryder’s collaborative approach to evaluating and integrating our customers’ supply chains has been the driving factor in the formal launch of our co-location solution,” said Steve Sensing, Vice President & General Manager, Hi-Tech/Electronics, Supply Chain Solutions, Ryder System. “Traditionally, forward and reverse logistics have been treated as separate supply chains with obvious redundancies from transportation, infrastructure, overhead, and direct labor. With increasing market emphasis on greener, more sustainable solutions, co-locating forward and reverse logistics under the same roof immediately reduces carbon footprint, infrastructure, resources and cycle time. Over 65 percent of our customers’ returns are ‘No Fault Found,’ which means they can immediately be placed in ‘Good Stock’ and resold through new channels. Our solution eliminates touches and transportation legs, and speeds inventory turns.”
Sensing said that the key value drivers of co-locating forward and reverse operations is a reduction in transportation miles, infrastructure, providers, and cycle time and an increase in velocity. He also explained that Ryder provides its customers real-time visibility through its Reverse IT Solutions and total control through a closed-loop supply chain.
When asked to provide some examples of how the new co-location solution works, Sensing said that traditional returns models have separated forward and reverse logistics network infrastructure, process, and visibility. And returns are often shipped from multiple customer DCs and stores to a single returns facility, where returns are received and disposition is determined.
“From there, products are shipped to repair providers, finished goods warehouses, recyclers, and liquidators—all of which increases touches, transportation miles and damage potential,” he said. “With Ryder’s co-located solution, returns are quickly received, a credit is issued, the disposition is determined, and the goods are even repaired on site to very quickly drive a higher recovery value for our customers’ assets.”
In terms of the biggest competitive advantages of this service, Sensing said that this providers shippers with an integrated closed-loop solution that increases visibility, velocity and value recovery of assets. And by integrating the two traditionally separate supply chains under a single provider, there is immediate opportunity to reduce supply chain operating costs and cycle time and improve control for customer planning.
Ryder has been providing reverse logistics for many customers since the 1990s, but continued to innovate with the product offering to combine its co-location strategy with Repair Services in 2010.
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