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
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 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 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
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’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.