Lear Corporation Taps Ryder for 3PL Contract

Auto industry supplier inks multi-year agreement with third-party logistics provider to serve 75 plant locations

Auto industry supplier inks multi-year agreement with third-party logistics provider to serve 75 plant locations

Miami — May 3, 2006 — Auto industry supplier Lear Corporation has selected Ryder System as its third-party logistics (3PL) provider for North America, Ryder has announced.

Under the multi-year contract, Ryder will provide logistics engineering and network design for product into Lear's 75 plant locations. Ryder will also provide procurement of transportation, thereby leveraging its buying power in the industry to help Lear gain better negotiated rates and service, routing instructions and compliance management.

"Our decision to outsource supply chain management was taken after reviewing market tendencies and total supply chain functionality," said John Lacny, director of global logistics and transportation at Lear. "After an extensive review and tender process, we selected Ryder based on their integrated network optimization solutions and vast experience in the automotive industry."

Lacny said that other considerations included Ryder's track record in leveraging and combining synergies in its managed network that will engineer cost containment and reductions for Lear, as well as Ryder's ability to give Lear greater end-to-end supply chain visibility.

"Ryder looks forward to implementing best practices and processes throughout Lear's transportation operations to help Lear continue to build on its reputation for high quality in the automotive industry," said Tom Jones, Ryder's senior vice president of supply chain solutions for automotive, aerospace and transportation management.

Lear is one of the world's largest suppliers of automotive interior systems and components. Lear provides complete seat systems, electronic products and electrical distribution systems and other interior products, and it has annual net sales of $17.1 billion. The company is headquartered in Southfield, Mich., and has 115,000 employees at 282 locations in 34 countries.

Additional Articles of Interest

— Businesses today continue to look for ways to reduce their logistics costs, but in order to identify further costs savings, companies need to tap into new information. The answer? Benchmarking. Read more in "Freight Cost Benchmarking: The Final Procurement Level," in the February/March 2006 issue of Supply & Demand Chain Executive.

— Is your spend management program meeting its full potential? For a step-by-step process guide for the Procurement organization, read "How to Fulfill the Spend Management Promise," exclusively on SDCExec.com.