Imperial Tobacco Canada to Build Retail Supply Chain with Ryder System

Leading tobacco firm retools business model to include direct-to-store delivery of products to 26,000 retailers across Canada


Leading tobacco firm retools business model to include direct-to-store delivery of products to 26,000 retailers across Canada

Miami — July 25, 2006 — Imperial Tobacco Canada Ltd. said this week it is expanding its supply chain agreement with Ryder System Inc. in order to execute its major supply chain transformation originally announced in May.

Since 1998, Ryder has provided warehousing services for Imperial Tobacco across Canada. Ryder's services are being expanded to include complete order fulfillment and supply chain management services for Imperial Tobacco's products, including offshore warehousing and inbound transportation management. As part of its expanded services, Ryder will provide direct-to-store finished product delivery to more than 26,000 retail locations throughout Canada.

This "purpose-built" delivery system, the first of its kind in the Canadian tobacco industry, will employ over 400 specially trained truck drivers and material handlers, more than 200 customized delivery vans, and 21 warehouse and cross-dock facilities.

In addition, Ryder will design and operate customized information technology systems to provide order visibility and inventory management.

"We selected Ryder to help us design and implement our direct-to-store delivery initiative based on their strategic planning capabilities, supply chain management expertise and strong operational insight into driving efficiencies throughout our supply chain," said Benjamin Kemball, president and CEO of Imperial Tobacco Canada. "Having Ryder as our supply chain partner will enable us to deploy best-in-class supply chain practices and to meet the needs of our valued retailers and their adult customers in the fast-paced, ever-changing tobacco environment in Canada."

Ryder President of International Operations Bobby Griffin added, "Ryder is proud to play a leading role in the design and execution of this new and innovative supply chain strategy. We have developed a deep understanding of Imperial Tobacco's customer needs over our longstanding partnership, and we're excited about being chosen to lead their unique retail delivery transformation."

Imperial Tobacco Canada is owned by British American Tobacco (BAT), one of the world's largest tobacco companies.


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