Hendrickson Outsources TMS

Global manufacturer turns to Ryder for transportation management services

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Miami  September 11, 2002  Hendrickson International, one of the largest global suppliers of highly engineered suspension components and systems for the commercial transportation industry, has awarded a multiyear transportation management contract to Ryder System.

Hendrickson's products support every major North American heavy-duty truck and trailer original equipment manufacturer (OEM), as well as various OEMs around the world. The company has 18 facilities worldwide and a joint venture in Europe.

Through its transportation carrier and procurement system, Ryder is supporting Hendrickson's inbound transportation of raw materials and purchased parts from suppliers, and outbound to inter-company plants and in some instances to the manufacturer's customers.

Ryder provides shipment planning, optimization and execution, as well as procurement of transportation, which leverages Hendrickson's buying power to negotiate the best transportation rates and services.

In addition, Ryder provides carrier selection and negotiation; compliance management; management reporting; and freight bill audit and payment through its transportation management center in Fort Worth, Texas. Ryder also manages $12 million in freight that is handled by a variety of carriers on behalf of Hendrickson.

"One of our biggest transportation challenges is to find ways to further reduce costs, optimize lanes and leverage services with a select group of qualified carriers," said Joe Ross, president of Hendrickson International. "Ryder provides us with a single-source solution for total transportation management that allows us to evaluate and leverage the best transportation buys to create maximum value."

Robert Sanchez, Ryder's senior vice president of transportation management solutions, said that the integration of Ryder's transportation management services will help Hendrickson reduce its costs and introduce best practices with standard work processes. "The solution will also foster continuous improvements, thus reducing transportation and logistics costs for Hendrickson's supply chains over time," Sanchez said.

The system will provide a strategic support application designed to allocate transportation requirements to a set of transportation carriers. Ryder will utilize the system to analyze, forecast and format transportation needs into a defined scope.