Ryder Enhances Reverse Logistics Offering with New Co-Location Solution

Integrates reverse and forward logistics activities in same facility

Miami—Nov. 18, 2011—Ryder System, Inc. a provider of supply chain, warehousing, and transportation management solutions, has expanded its reverse logistics capability to include a co-location solution. The new offering integrates forward and reverse logistics in the same facility to further optimize the returns process and drive greater value recovery of returned assets.

By co-locating the distribution management of finished goods with returns processes such as technical repair, refurbishment, and repackaging in the same facility, this solution offers companies the ability to achieve greater speed to shelf, visibility, and cost-savings.

Ryder’s reverse logistics capability consists of a full suite of integrated reverse logistics and IT solutions to handle the management of returned goods from end to end.

These solutions include initiation of return materials authorization (RMA); product sorting; credit reconciliation; triage and functional testing; technical repair; parts reclamation; scrap, disposal, and recycling; and packaging/kitting. A Web-based portal supports return materials authorization (RMA) initiation, validation, and serial number control tracking and provides visibility for each step in the returns process at the serial number and SKU level.

“Achieving greater visibility, velocity, and value recovery for returned assets are three of the greatest drivers for a robust reverse logistics network,” said Steve Sensing, vice president and general manager of Hi-Tech/Electronics for Ryder Supply Chain Solutions. “This expansion of our reverse logistics capability ties directly into our strategic initiative of providing flexible, proactive solutions and best-in-class operational execution to offer greater value to our customers.”

Companies’ reverse logistics networks are often composed of multiple service providers due to the complexity of the returns process, which includes logistics, depot repair, sales/marketing of refurbished products, finance, customer service, and channel management. The piecing together of service providers to handle the full returns management process reduces product visibility and speed. Several existing high-tech customers who are leveraging Ryder’s co-location strategy have already been able to benefit from lower administrative costs, fewer transportation miles, lower fuel costs, and improved visibility and control throughout the product lifecycle while achieving faster processing speed.

“In certain industries such as high-tech and consumer electronics, where product lifecycles are short and returned products must be sent back to market quickly, a co-located solution represents a significant opportunity for value recovery and cost-savings,” Sensing said. “At Ryder, more than 65 percent of the returned products we handle for our high-tech and consumer electronics customers are reported as ‘no trouble found.’ These are products that could be easily repackaged and sent back to inventory to support warranty exchange programs and/or re-marketing, among other strategies. A solution that speeds this process will offer the greatest value to the customer.”

An efficient returns management process can also play a critical role in meeting corporate sustainability goals. Some companies have zero-landfill goals and strive to work with a logistics partner that can provide proper recycling and disposal of returned products. A co-location strategy further supports carbon footprint reduction and corporate sustainability goals through fewer transportation miles, lower vehicle fuel consumption, and lower building carbon output. A more agile supply chain also decreases product obsolescence and reduces total inventory levels.

“The synergies between reverse logistics and corporate sustainability are undeniable,” he added. “An effective reverse logistics strategy is actually the ultimate recycling process.”