Ryder System, Inc

July 21, 2011 – 6:20 pm

Ryder System, IncBusiness Profile
Ryder System, Inc. (Ryder) is a global company. It is provider of solutions related to supply chain management and transportation. It has three business segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS) and Dedicated Contract Carriage (DCC).

The company’s shares are traded on New York Stock Exchange under the ticker “ R “. In 2007 company acquired a Canadian rental and commercial truck leasing company by name Pollock NationaLease. The Ryder System also acquired transportation-based logistics operations of Pollock Company.

In fiscal year ending 2006, the company registered total revenue of $6.31 billion which is 10% increase from previous year’s revenue of $5.74 billion. The operating revenue was $243 million which is again 6% increase from previous year i.e. 2005. Earnings from operations increased to $249 million from $ 228 million in FY 2005. Earnings per diluted common share increase from $3.53 to $4.04 in FY 2006.
Following are the business segments and its operations:

Ryder System, Inc Ryder System, Inc Ryder System, Inc

Fleet Management Solutions (FMS)

FMS segment primarily provides contractual-based, contract maintenance and full-service leasing services. The company also provides transactional fleet solutions that include commercial truck rental, value-added fleet support services like insurance, maintenance services, vehicle administration and a fuel services. Apart from these services, the Company provides used vehicle sales program to its customers with various options of used trucks, trailers and tractors. In December 2006, global FMS business contributes 59% of total Ryder’s revenue. The FMS customer ranges from small businesses to large national enterprises in the United States. The company primarily operates with industries, like beverage, home grocery, newspaper, home furnishings, lumber and wood products and metal. Ryder had approximately 140,900 commercial trucks, trailers and tractors for leased or rented in 693 locations in 49 states and Puerto Rico.

The company’s domestic business in FMS is divided based on regions: West, East and Central. Each and every region is segregated into 8 to 16 BUs (Business units) and 10 to 30 branch offices are there in each BU. By end of December 31, 2006, the Company has leased 104,500 vehicles approximately under full-service in the United States. Ryder had approximately 11,000 customer accounts under full-service lease in the United States as on December 31, 2006,.

FMS has following services under its umbrella:

• Full Service leasing: – It helps leasing customers to outsource fleet management operation or fleet up gradation. This service includes maintenance, equipment supply and related services.

• Contract Maintenance:- It helps customers in reducing vehicle downtime by preventive maintenance, vehicle repair and 24 hour roadside service.

• Commercial Rental:- It includes providing fleet or vehicles on short term or long term basis. It also provides additional vehicles to full service lease customers to cater to peak or seasonal demand.

• Contract – related maintenance:- This covers additional periodic maintenance which is required in addition to full service and contract maintenance

• User Vehicles:- Through this company sells its own used vehicles through its network of 57 sales
centers in North America.

FMS has business strategy which is inline with overall company goals and priorities. Thus fleet management services help to improve customer retention, implement sales growth initiatives, optimization of asset utilization, conduct maintenance and improve productivity, offer services like leasing, rental and provide services at competitive prices.

Supply Chain Solutions

Under this business segment, the Company offers various services related to logistics management. These are designed for client’s supply chain globally. Under SCS Ryder’s product offerings have been organized into following three categories:

• Distribution Operations

• Transportation Solutions

• Professional services

The Company also provides its clients a variety of IT (information technology) solutions, which is called as e-fulfillment. In 2006, Ryder’s SCS business contributed to 32% of its consolidated revenue. The Company as of 31st December, 2006, had 96 customer accounts mostly large companies having huge and complex supply chain, in the United States. These clients are from various industries including electronics, automotive, high-tech, industrial, telecommunications, consumer goods, general retail, paper and paper products, food and beverages and office equipment. General Motors is Ryder’s largest customer.

Dedicated Contract Carriage

DCC (Dedicated Contract Carriage) business segment combines the administrative services, equipment, and maintenance of a full-service lease with services to help clients with a transportation solution. These additional services cover driver training & hiring, scheduling and routing, fleet sizing, regulatory compliance, safety, risk management, technology & communication support, which includes on-board computers and technical support. In 2006, DCC business contributed 9% of its company’s total revenue. Ryder in December 31, 2006, had 239 clients in US.

International Operation of Company

The Company has FMS services in the United Kingdom and Canada. It has SCS operations in Lating America, Canada, Asia and Europe.

The company has consolidated function of financial administration for Canada and the US. These include billing & collections, credit etc. They use shared services center for operations.

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