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Supply Chain Solutions FIU Business Inter-American Supply Chain Forum James W. Moore Vice President, Supply Chain Excellence Ryder Supply Chain Solutions.

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Presentation on theme: "Supply Chain Solutions FIU Business Inter-American Supply Chain Forum James W. Moore Vice President, Supply Chain Excellence Ryder Supply Chain Solutions."— Presentation transcript:

1 Supply Chain Solutions FIU Business Inter-American Supply Chain Forum James W. Moore Vice President, Supply Chain Excellence Ryder Supply Chain Solutions March 16, 2012

2 Proprietary and Confidential | Company Overview and Solutions 2

3 Proprietary and Confidential | CORPORATE OVERVIEW 3 Since its founding in 1933, Ryder has become a leading provider of integrated logistics & transportation solutions. We deliver outstanding functional execution and proactive solutions built from deep expertise in key industry verticals, including retail and consumer goods. 2011 Revenue$6.05 Billion Supply Chain Solutions Division$1.61 Billion (36%) Fleet Management Solutions$3.84 Billion (64%) 2011 Net Earnings$169.8 Million Employees27,500 Fortune 500 Rank [NYSE : R]437 Distribution Facilities Managed / Sq Ft235+ / 30+ Million sq ft SCS Customer Accounts480 Fleet Equipment169,900 Clients Worldwide15,000+ HeadquartersMiami CanadaToronto AsiaShanghai MexicoMexico City OtherLondon Freight Under Management*$4.2 Billion Carriers Under Contract1,700

4 Proprietary and Confidential | CORPORATE OVERVIEW MEXICO Since its founding in 1994, Ryder has become a leading provider of integrated logistics & transportation solutions in the Mexican market. Our customer’s recognize us for our outstanding functional execution and proactive solutions built from deep expertise in key industry verticals, including automotive, retail, high-tech and consumer goods. 4 2010 Revenue~ $165 Million Ryder Mexico HQ Mexico City and Miami FL. Ryder Mexico Regional Offices Monterrey, Guadalajara, Saltillo. Employees~1,900 Ryder Operational locations16 Customer’s locations (operated by Ryder)18 Clients Mexico87 Ryder Mexico Ryder Monterrey Ryder Guadalajara

5 Proprietary and Confidential | CORE COMPETENCES 5 INTEGRATED » Control Tower for supply chain visibility » Solutions Engineering » Strategic Consulting/Decision Support » Network Modeling & Optimization » Total Landed Cost » Origin/Destination Services WAREHOUSING VALUE ADDED SERVICES TRANSPORTATION » Inbound Materials Management » Vendor Managed Inventory (VMI) » Order Fulfillment » Multiclient Facilities » Cross Dock operations » Reverse Logistics » Vendor & Retail Compliance » Retail & Product Configuration » Promotional Display Construction » Product Customization » Kitting, Packaging & Assembly » Global Transportation Management » Dedicated Contract Carriage » Shipment Planning & Execution » Freight Procurement & Contract Management » Cross border network » Network Optimization Models » Inventory & Shipment Visibility Tools IT SOLUTIONS Ryder’s asset-light philosophy allows us to design, implement and operate complex, high-value supply chains for our clients around the world. This approach is based upon a flexible, responsive and customer-focused organization consisting of world-class people, processes and technology. » WH & TM Systems

6 Proprietary and Confidential | Demand Driven Supply Chains and Ryder’s Control Tower Solution 6

7 Proprietary and Confidential | DEMAND DRIVEN SUPPLY CHAINS: LSP ROLE 7 The challenge of DDSC is seamless visibility—no discontinuities Logistics Service Providers are integral in the flow of information, product and finance in a Demand Driven Supply Chain Vendors Retailers Suppliers Manufacturers Logistics Service Provider Market

8 Proprietary and Confidential | CONTROL TOWERS FOR VISIBILITY: MARRY PHYSICAL AND VIRTUAL FLOWS Physical Event Virtual Event Plan for Every ProductRelease & ShipMovementDelivery TL, CL LTL, LCL Tier 1 Plan for Every ProductRelease & ShipMovementDelivery 8

9 Proprietary and Confidential | THE GOAL: RESPOND TO POS FROM THE SHELF 9 Control Tower Design the FlowExecute the Flow "Sense the Shelf""Supply the Shelf"

10 Proprietary and Confidential | THE LSP CHALLENGE: ONE VIEW; ALL EVENTS; FOR ALL PARTIES 10 TDCC 830 862 BOL SO Manifest Receipt PL Receipt FB Manifest GoalCurrent State

11 Proprietary and Confidential | THE LSP SOLUTION: CONTROL TOWER—ONE VIEW; ALL EVENTS; FOR ALL PARTIES 11 Vendors Retailers Suppliers Manufacturers

12 Proprietary and Confidential | Mexico Cross Border & Control Tower Capabilities 12

13 Proprietary and Confidential | CROSS BORDER CAPABILITIES 13 Ryder is one of the largest managers of Mexico Cross Border services. Ryder has dedicated teams focused solely on planning and executing the fastest, safest and most secure border crossing process on a 24 x 7 operation. 13 Infrastructure » ~156,000 cross border shipments in 2010. » Integrated or stand alone services. » Common and Dedicated Cross docks. » Equipment maintenance and storage. » Secured trailer yards. » Management teams on both side of the border. COORDINATION » Liaison with US and Mexican carriers, customer representatives and customs brokers. » Direct trailer shipments from Mexico to US or US to Mexico. » Coordinates all door to door activities including the handling of all customs brokerage transactions. CUSTOMS » Dedicated US and Mexican brokers to provide full Customs Brokerage services. » Interfaces with the Customer’s brokerage system to provide all data required for customs processing. » Manage Forwarding Services. » Consolidate & deconsolidate products. » Drayage services. » Dedicated Yard facilities. » Yard management systems that allow Ryder to track the location of trailers within the network. » Cross dock facilities across the border for material going into Mexico from US and material going into US from Mexico. OPERATIONS Security Program: Prevention & Response Proven lead time reduction C-TPAT, FAST lane. Quantitative Success Rate 99.5% incident free Security Programs CCTV, guards, drug-sniffing dogs Industry-leading Benchmarks C-TPAT, BASC, TAPA

14 Proprietary and Confidential | CONTROL TOWER CAPABILITIES 14 OMC Operational Management Center - Nuevo Laredo - Mexico City - Guadalajara The OMC Operational Management Center is a shared solution center providing the flexibility to deliver a customized solution that meets our client’s requirements. Ryder’s OMC is a key component in our Transportation solution portfolio value proposition – providing strategic network design through optimized order fulfillment and flawless shipment planning and execution. Tier 1 OptimizationTender & Ship Movement Delivery PlanProcure Execute Improve Tier 1AutomotiveCPG

15 Proprietary and Confidential | 1 4 1 1 2 1 1 MEXICO INFRASTRUCTURE 15 Area: 42,175 m2 Area: 37,770 m2 GDL: Ryder III MEX: Carrizal Laredo: Xdock + Xborder MTY: Kalos MTY: Diamante Nuevo Laredo: Yard Nuevo Laredo: Control Tower Area: 4,106 m2 Area: 20,467 m2 Yard Area: 28,000 m2 Area: 5,760 m2 Yard 6,690 M2 MTY: Stiva Area: 34,123 m2 Yard Area: 10,000 m2 Tijuana: Cross Border Yard Area: 5,000 m2 Cd. Juarez: Yard 1 SLP: Ryder ASL Area: 20,475 m2 Multi-client Facilities Benefits: Flexibility, economies of scale and complementary seasons that a dedicated facility would be unable to achieve. Allows customer to focus on its core business. 79% Industry Base 70% Urban Population 80% Commerce Ramos: Ryder ASL Area: 20,304 m2

16 Proprietary and Confidential | Ryder Mexico Locations and Customers (sample) 16 WH space221,159 m2 Yard space306,482 m2 Total Space 527,641 m2 WH space221,159 m2 Yard space306,482 m2 Total Space 527,641 m2 Manages approx. 3,000 border crossings each week between Mexico and US. MEXICO CUSTOMER BASE

17 Proprietary and Confidential |. CONSUMER GOODS CUSTOMER: LEAD TIME REDUCTION OF 55% 17 Ryder Solution provides Control Tower & Visibility through planning, optimization, execution, visibility, and reporting enabling an adaptive, responsive supply network reducing total logistics inventory 11 days Impact to Northbound Crossborder Lead Time 5 days 6 days reduction in inventory

18 Proprietary and Confidential | Thank You !! 18 Please visit

19 Proprietary and Confidential | Appendix 19

20 Proprietary and Confidential | Ryder’s Supply Chain Management System includes Warehouse Management System WMS, Transportation Management System RTMS, Yard Management System YMS and Vehicle Management System VMS for trailer yard and vehicle yard administration respectively and Control Tower Application CTA for visibility through the entire supply chain. These systems are able to provide control, reliability, visibility and confidence to our customers that their products are best handled and delivered to their Customers. INFORMATION TECHNOLOGY STRATEGY 20 Integrated – centralized solution Infrastructure in support of applications, databases, WAN/Internet, EDI Integration ERP, Legacy, etc Customer’s SystemsSupply Chain Mgmt SystemWeb based access Customer, Ryder, 3rd Party Database WEB Application IB / Receipts Put away, Returns, etc Inventory Control, RF Order-Delivery, Picking, Dispatch, POD / OB Product Traceability EXECUTIONINFRASTRUCTUREINTEGRATION TO CUSTOMER’S EDI WORKFLOW Delivery Orders, ASNs Goods Receipts, Goods Issue, POD, etc

21 Proprietary and Confidential | WAREHOUSING CAPABILITIES 21 Ryder Mexico has provided supply chain and warehouse solutions to major Automotive, Industrial, High-Tech and Retail Appliance Customers since 1994. Services include warehousing management and outstanding execution. OPERATIONAL ENVIRONMENT » Multi-client and dedicated facilities with more than 220,000 m2. » Ryder location yard space with more than 306,000 m2. » Best warehousing practices. » Cross docking operations. » Pick, pack and ship through various channels. » Ryder WMS. » KPI tracking and reporting. » Vendor Management Inventory VMI. » Reverse Logistics. Value Added Services » Kitting and packaging. » Retail pre-distribution per store. » Bundling. » Inspection and Private & Branded Label Products » Other as required by customers.

22 Proprietary and Confidential | TRANSPORTATION CAPABILITIES 22 Through a carefully executed selection process Ryder has selected several Carrier Partners in the market to whom we lease Ryder owned trucks to provide us with dedicated transportation services. In addition, Ryder Mexico has over 100 mexican carriers under contract providing services to Ryder on a daily basis. Ryder Mexico provides its customers a unique and effective transportation management system through access to dedicated and transactional transportation managed seamlessly by Ryder Mexico. This system works like a Control Tower for all movements of Ryder. SERVICES » Dedicated and Transactional Transportation » Onsite Fleet Management, Dispatch and Administration » Shipment Planning and Execution (SPE) » Freight Bill Audit and Payment (FBAP) PROCESSSYSTEMS » Contract Administration » Rate Management » Claims Management » POD Management » Performance Metrics » Proven Safety Program » Continuous Improvement » Training and Compliance » Transportation Management System RTMS » Web Visibility » GPS Tracking » Electronic Dispatch » Yard view » Optimization Modeling » Integration via EDI » Onboard Communications MAINTENANCE » 7 Maintenance workshops and a fleet of mobile maintenance units. » Programmed Preventative and Corrective Maintenance

23 Proprietary and Confidential | RAIL SWITCHING CAPABILITIES Another capability in Ryder Mexico is the Rail Switching Operations. Currently, this service is performed for finished cars in Silao and Ramos Arizpe. USA, Canada and Middle East destination units, are loaded into Multilevel Railcars. 23 OPERATION ENVIRONMENT » Rail Loading. » Rail Switching. » Ryder’s Vehicle Management System (Vintelligent) thru RF scanning. » Vintelligent updates customer’s system (VTIMS) in an automated process via EDI. » Safety is the overriding priority. » VAS services: » Finished Vehicles Inspection, Receiving and Driving away according to Ramp Codes Destinations. » Wrap guard and wax coating to avoid rust damage for thru-ocean destinations » Laser engrave. Infrastructure » 5 Ryder Locomotives (2 in Silao and 3 in Ramos Arizpe) » Up to 300 railcars in inventory are managed at Silao, 205 at Ramos Arizpe.

24 Proprietary and Confidential | At the multi-client facilities: Local area network services and computer room. Telecommunications to access Ryder’s Data Center with backup link. 60 to 90 days backup on hard disk for video surveillance. At the Data Center (centralized off-site location): Data center infrastructure with redundant components. Daily database backups. Database replica to alternate Data Center. Biometric access control to the facility. Fire Protection System: Fire hydrant and fire extinguisher. Mexican regulation and NFPA Compliant (National Fire Protection Association). Emergency power plant. Medical service. CCTV Digital System. Electronic card access control to the high value areas. InternalExternalCentral Monitoring Video Surveillance / Access Controls High Value Areas Infrastructure and Systems Secure Data Processes SECURITY INFRASTRUCTURE 24 Ryder’s Multi-client facilities are equipped with the most innovative and proven security technologies, such as internal and external CCTV, High Value Areas surveillance and Central Monitoring.

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