FLEET LEASING & MAINTENANCE DEDICATED TRANSPORTATION SUPPLY CHAIN SOLUTIONS

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1 S O L U T I O N S H O W C A S E MEETING CUSTOMER DEMANDS THROUGH ENGAGEMENT, GROWTH, AND TRANSPORTATION EFFICIENCY As new challenges threaten to change the rules of the supply chain world, delivering on the customer promise becomes more difficult for businesses. Adapting to and overcoming today s disruptions, and future ones, will allow companies to ensure optimization and customer satisfaction. In this case study, learn how True Value and Ryder evolved their partnership over the past four decades, and how it has led to a best-in-class transportation solution and exemplary customer service levels for the wholesale hardware cooperative. FLEET LEASING & MAINTENANCE DEDICATED TRANSPORTATION SUPPLY CHAIN SOLUTIONS

2 THE OUTSOURCING DIFFERENCE Through its over 40 year partnership with Ryder, True Value has experienced: Preventive maintenance on 500 vehicles by on-site Ryder technicians 95% service level 99% order accuracy 180+ tractor upgrades in 2015 $4 million in savings through transportation network optimization roadmap 14 million miles traveled annually

3 The pressure of disruptive trends is forcing retail supply chains to re-evaluate their operations. These pressures are causing more complexity and driving businesses to evolve at alarming rates to meet consumer demands. In order to survive and succeed in this highly competitive retail environment, businesses must embrace innovation and develop a strategic plan to increase efficiency, improve customer service levels, and lower the cost to operate. One of the leading drivers of today s supply chain evolution is customer behavior. Today s customers are digitally savvy, require flexibility from retailers, and demand fast delivery. These new behaviors have created what we know as the Now Economy. True Value Company is one of the world s largest retailerowned wholesale cooperatives with more than 4,500 independent retailer locations worldwide, they know reaching today s customers with old methods is not going to capture their loyalty. To succeed in the Now Economy it must engage, grow, and be efficient. No trend in recent memory has made more demands on a company s supply chain, says Abhinav Shukla, Senior Vice President and Chief Operating Officer at True Value. Sixty percent of all home improvement transactions begin online. There is no capability as transformative to a company s digital journey as having a nimble, consumer-centric, and efficient supply chain. One of the key threads in our partnership has always been problem solving. When we approached Ryder about one of our biggest challenges being scheduling deliveries, we came up with a solution that we have had great reception on from our retailers. It s an excellent example of a strong partnership with the key pillars of problem solving, collaboration, and open honest communication at all times. Abhinav Shukla, Senior Vice President and Chief Operating Officer, True Value With its vast footprint, True Value recognizes that to compete effectively in the marketplace it must deliver orders on a consistent, timely basis, especially during peak season. However, managing the variable demands of a transportation fleet is not the core businesses of the hardware co-op. In order to execute its promise to customers, True Value expanded its partnership with Ryder System, Inc. in 2015 to include a dedicated transportation solution. The True Value and Ryder partnership began in the 1970s. At the time, True Value owned its fleet and relied on Ryder to provide specialized equipment and maintenance to its fleet. In the spirit of continuous improvement, the partnership grew over the years. Ryder was responsible for completing preventive maintenance on True Value s fleet of 500 vehicles. True Value s North American footprint matched with Ryder s over 800 service shops across the continent, giving True Value the peace of mind that a shop was always nearby if needed.

4 We approach every relationship with the spirit of continuous improvement. We take the trust we have developed and embark on a journey that continually optimizes the network, driving more value for our partners. John Diez, President, Dedicated Transportation Solutions, Ryder When the relationship expanded in 2015, 10 of True Value s 12 distribution centers transitioned to Ryder Dedicated Transportation Solutions. The remaining two transitioned in This transition included upgrading over 180 tractors in the True Value fleet, network optimization software, driver management, and greater transportation productivity, reliability, and quality through engineering. Through this process we have modernized our fleet and maintained over 80 percent of our drivers, Shukla says. We do over 220,000 deliveries per year. Perfect fulfillment of deliveries is something our retailers expect in addition to good cost and service performance. Ryder has always accepted that, taken it in stride, and worked hard to meet our expectations. Like many businesses in the retail industry, trends have forced True Value to place more emphasis on just-in-time delivery, and flexibility. By outsourcing its private fleet to Ryder, True Value was able to execute on these areas of importance. We are providing True Value with an end-to-end transportation solution, says John Diez, President, Dedicated Transportation Solutions at Ryder. More importantly we are providing them with flexibility and visibility to be able to respond and create a greater experience with their customer base. The success of the relationship has been built upon collaboration between the True Value and Ryder teams. Shukla says to attain both team s goal of continuous improvement, having a progressive, problem-solving oriented relationship the two teams have, is paramount. Ryder and True Value adopted a constructive approach to working through challenges with a spirit of engagement and interaction to ensure success, Shukla says. For example, reporting to show data mining trends and service shortfalls was initially not as accurate and comprehensive as we would have liked. We have seen significant improvements. We are always focused on solving problems. True Value sets high standards for itself and its business partners. Our expectations on support, technology, and analytics can exceed the norm. True Value never approached Ryder as just a vendor, but as a strategic solutions provider for our needs. We are both open and honest, and consider ourselves part of the same team.

5 The successful expansion of the partnership has led to the phase that centers on optimization through technology and innovation. In the near future, True Value and Ryder will pilot a new mobile app that displays the locations of a delivery at any point and sends schedule change notifications. This new app, along with the other facets of the solution, will help deliver a more efficient transportation network that allows True Value to meet the demands of its customers. We are now at the stage where we are evolving to the next phase, Diez said. Through our engineering team, we have been able to collaboratively take a look at redesigning their transportation network to drive down costs. We are looking forward to expanding on this as the partnership continues. With a fleet that travels over 14 million miles per year, and making most deliveries within 48-hours, network optimization is paramount. While Shukla admits, the decision to outsource its transportation was not an easy one, True Value has increased its customer service level to 95.4 percent a number both partners expect to continuously improve. Our private fleet was a differentiator for us and the decision was not taken lightly. Outsourcing service agreements of this complexity and magnitude requires intense scrutiny of every detail, Shukla says. With Ryder, we find the complexity of managing the details much easier than if we were running the fleet ourselves. About True Value Company True Value Company, headquartered in Chicago, is one of the world s largest retailer-owned wholesale hardware cooperatives with gross billings of over $2.0 billion and revenue of $1.5 billion in The True Value cooperative includes approximately 4,500 independent retailer locations worldwide operating under the store identities of True Value, True Value Rental, Party Central, Home & Garden Showplace and Induserve Supply. Additional information on True Value and its retail identities is available at About Ryder System, Inc. Ryder is a FORTUNE 500 commercial fleet management, dedicated transportation, and supply chain solutions company. Ryder s stock (NYSE:R) is a component of the Dow Jones Transportation Average and the Standard & Poor s 500 Index. Ryder has been named among FORTUNE s World s Most Admired Companies, and has been recognized for its industryleading practices in third-party logistics, environmentallyfriendly fleet and supply chain solutions, and world-class safety and security programs. The Company is a proud member of the American Red Cross Disaster Responder Program, supporting national and local disaster preparedness and response efforts. For more information, visit and follow us on our Online Newsroom and social media pages: Facebook, LinkedIn, Twitter, Instagram, and YouTube. ryder.com Ryder and the Ryder logo are registered trademarks of Ryder System, Inc Ryder System, Inc. Ever better is a trademark of Ryder System, Inc. PT