Ryder System has announced that Imperial Tobacco Canada is expanding its supply chain agreement with Ryder in order to execute its major supply chain transformation announced in May. Ryder also announced that Gibraltar Industries has expanded its transportation contract and has added dedicated contract carriage services for three of its subsidiaries.
As part of its expanded services, Ryder will provide direct-to-store finished product delivery to more than 26,000 retail locations throughout Canada. This “purpose-built” delivery system, which Ryder says is the first of its kind in the Canadian tobacco industry, will employ more than 400 specially trained truck drivers and material handlers, more than 200 customized delivery vans, and 21 warehouse and cross-dock facilities. In addition, Ryder will design and operate customized information technology systems to provide order visibility and inventory management.
“We selected Ryder to help us design and implement our direct-to-store delivery initiative based on their strategic planning capabilities, supply chain management expertise and strong operational insight into driving efficiencies throughout our supply chain,” says Benjamin J. Kemball, president and chief executive officer of Montreal-based Imperial Tobacco Canada. “Having Ryder as our supply chain partner will enable us to deploy best-in-class supply chain practices, and to meet the needs of our valued retailers and their customers in the fast-paced, ever-changing tobacco environment in Canada.”
“Ryder is proud to play a leading role in the design and execution of this new and innovative supply chain strategy,” says Bobby Griffin, president of international operations for Miami-based Ryder. “We have developed a deep understanding of Imperial Tobacco’s customer needs over our longstanding partnership, and we’re excited about being chosen to lead their unique retail delivery transformation.”
“We needed a national transportation provider that could leverage our network of multiple divisions and drive efficiencies throughout our supply chain,” says John E. Wagner, vice president of supply chain management for Gibraltar. “Our decision to outsource additional transportation functions to Ryder is a direct result of the quality service and total cost benefits this partnership has been able to deliver to our customers and Gibraltar. We have confidence in Ryder’s transportation and logistics capabilities.”
Additionally, Ryder will be co-located at Appleton Supply’s manufacturing facility in Appleton, Wis., and Southeastern Metals’ manufacturing facility in Jacksonville, Fla., to manage and consolidate less-than-truckload shipments into multi-stop truckloads and fill backhaul lanes through Ryder’s Transportation Management Center.
“Ryder is proud to expand its role with Gibraltar and help contribute to its reputation of providing excellent customer service,” says Vicki O’Meara, Ryder president of U.S. supply chain solutions. “We are confident that our solution will add value throughout their distribution channel, helping Gibraltar lower their transportation costs while supporting their growth objectives.”
