Supply Chain Brain - March/April 2012

centers, just-in-time and dedicated contract carriage operations.

Ryder and Leaseway (Penske) started DCC from single-source truck leasing in the late 1970s. For its key customers, it provides 200 to 350 tractors each. Its revenue target without the fuel surcharge is $150,000 a year. Ryder DCC has 150 on-site managers, 400 locations and 250 accounts. Ryder’s transportation management center assists with balancing larger lanes. Equipment is specifically assigned to 85 percent of accounts. A large part of trailers are specialized equipment. Ryder runs more straight trucks than any other DCC. About 50 percent of its trips are greater than 500 miles. Around 200 to 300 owner-operators are used primarily for home delivery, newspaper accounts and some long-haul business.

John Williford, the chief executive officer of Ryder, and Tom Jones, executive vice president and chief of the automotive logistics operations, have changed Ryder’s SCS emphasis. Their redesign is based on an expansion of Asia-U.S. retail business leveraging off of the purchase of Transpacific Container Terminals and CRSA and a joint partnership with Hong Kong-based Cargo Services Far East. Ryder’s SCS business was about 60 percent automotive through 2008. In 2010, automotive was about 45 percent of the business, high-tech was 22 percent, retail/consumer packaged goods about 18 percent and indus-trial/other 15 percent.

Williford and Jones have been working hard on the further expansion of retail, consumer goods, and high-tech business. Operations in South America have been eliminated so that Ryder’s resources can be applied more strategically. In December 2010, Ryder acquired Total Logistic Control, a leading 3PL in providing value-added warehousing and transportation management services to customers in the food and grocery and retail vertical industries. In January 2011, Ryder acquired two Southern California operations to expand its presence in dedicated contract carriage in the West, as well as increase its customer base in the retail vertical industry.

Nissin Corporation/Nissin
Group

Nissin is a multifaceted Japanese 3PL with significant global freight forwarding operations. Headquartered in Yokohama, with branch offices throughout Japan, it has major centers of operation in Asia, Europe and the Americas. Competing with Kintetsu and Nippon Express, it offers a portfolio of international transportation services, logistics and supply chain management.

BDP International

BDP is a leading freight forwarder with a strong emphasis on chemicals. Its operations are high quality. BDP handles customs brokerage for Dow Chemical and DuPont on about 600,000 containers a year.

In its portfolio of services is the BDP Global Network, an alliance of small to mid-sized logistics firms, which was set up to take on large multinational logistics and transport companies by delivering higher standards of customer service, BDP officials say. In tandem with BDP International’s own extensive global coverage, the BDP Global Network gives companies active in global or cross-border trade access to professional and personalized logistics services in more than 120 countries.

Menlo Worldwide Logistics

Menlo is one of the leading U.S.-based 3PLs. It has adapted a Lean/Six Sigma management approach that is having positive results both on its profitability and in developing new business.

Menlo has solid, inbound supply chain management and finished goods distribution capabilities. It is a prime contractor for the U.S. Transportation Command’s Defense Transportation Coordination Initiative and recently became the lead logistics provider for truck manufacturer Navistar.

Menlo has significantly grown its China and Southeast Asia network and is continuing to expand its European operations. Both are adding significant pieces of business with retailers such as Triumph in the U.K. and Malaysia and Puma in Singapore. In Southeast Asia, Menlo runs 27 value-added warehousing operations with 3. 5 million square feet of space and a workforce of 1,175. Menlo’s IT capabilities, including its recent addition of Oracle-TM’s transportation management system, provide it with solid supply chain management and optimization capabilities.

Kerry Logistics Network

Kerry Logistics’s business portfolio encompasses contract logistics, international freight forwarding, warehousing, transportation, distribution, trading, merchandising and a wide variety of value-added services and is now managing more than 26 million square feet of warehouse space, logistics centers and port facilities globally. Its Integrated Logistics division, mainly value-added warehousing and distribution, generates 44 percent of revenue and its International Freight Forwarding division generates 56 percent. Kerry Logistics handles 576,000 TEUs and 158,900 metric tons of airfreight annually.

Kerry EAS Logistics, the brand name of Kerry Logistics in mainland China, continues to provide high-quality logistics and solutions to customers in three major areas: freight forwarding, express parcel delivery and contract logistics.

APL Logistics

APL Logistics’s strengths have been in the automotive/industrial and retail client verticals. Thirty-four percent of revenues are in the automotive/industrial segment; 33 percent, retail; 15 percent, consumer goods; 4 percent, electron-ics/high-tech; and 14 percent, other.

The Americas generate 61 percent of revenues; Asia/Middle East, 26 percent; and Europe, 13 percent. APL Logistics has automotive joint ventures in China. About 60 percent of APL Logistics’s revenues are from contract logistics. Consolidation, deconsolidation and freight forwarding make up the rest. Its global warehousing network consists of 166 facilities with 24. 7 million square feet of space. Its forwarding operations are closely linked to its parent company’s ocean container operations. APL provides customers more transparency than other Asia-based logistics companies.

APL Logistics handles about 35,000 shipments in its intermodal division annually. Top intermodal customers include: 3M, Ace Hardware, Baxter, Bay Valley Foods, Del Monte, Hino Diesel Trucks (U.S.A.), IKEA, Wal-Mart, and Winn Dixie. APL Logistics purchased 1,000 new 53-foot APDU containers to expand its intermodal capabilities.