"Ryding" into the Future

Philips Consumer Electronics teams with Ryder for product distribution, transporation

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MIAMIJune 21, 2002In keeping with the commercials, things at Philips are indeed getting better. Philips Consumer Electronics North America, the Atlanta-based unit of Philips Electronics North America Corporation, has announced a multi-year contract with Ryder System, Inc. According to the contract, Ryder will manage product distribution for Philips.

Ryder will manage a 756,000 square-foot distribution center in the Dallas-Fort Worth Metroplex and a 225,000 square-foot distribution center in Riverside, Calif.  In addition to distribution management, Ryder will manage all transportation of electronic products from Philips' three distribution centers to retail stores. The phased transition and implementation of the project is expected to be completed August 2002.

"Working with Ryder, we have developed an end-to-end program to improve our supply chain management," said Lawrence J. Blanford, President and Chief Executive Officer of Philips Consumer Electronics North America. "We are committed to being a leader in customer service and fill-rate support and believe that our relationship with Ryder will provide that competitive advantage in the marketplace."

"We look forward to an ongoing relationship that will further strengthen Philips' supply chain efficiency and improve customer service," said Gregory T. Swienton, Ryder's Chairman, President and Chief Executive Officer.  "Our value-based solutions will improve customer service through higher fill-rates and on-time deliveries to retail customers, as well as increase efficiencies in Philips' supply chains through standard processes and enabling technologies.  The new contract is a strong validation of Ryder's presence and solutions value as a major supply chain/logistics provider to the electronics industry," he added.

In addition to new operational processes, Ryder will introduce a fully integrated technology platform that consists of order management, transportation optimization, distribution management and order fulfillment functionality with Web visibility for order tracking. The solution also consists of an enterprise-wide order management repository, which interacts with Philips' ERP to process orders and apply customer-specific business requirements for execution within the transportation and warehouse management systems.

Additionally, Ryder will manage Philips' cross-border operations from its manufacturing plant in Juarez, Mexico to its three distribution centers in the U.S., as well as direct shipments to customers.