Ryder rolls out increased last mile and food-grade capabilities

Miami-based freight transportation and logistics services provider Ryder System Inc. recently announced it has taken multiple steps to expand its e-commerce fulfillment network, in the form of opening a new Philadelphia-area facility and adding FDA-certifications for food-grade capabilities to two additional facilities in Perris, Calif. and Dallas, Texas.

Ryder officials said that the new 340,000 square-foot Philadelphia-area facility will function as an e-commerce fulfillment center, which will integrate automation technology this summer that will enable the company to scale its operations to fulfill more than 70,000 packages a day. What’s more, the company added that it has its eyes on expanding that processing capability to more than 136,000 packages in a three-shift operation.

Ryder also noted that it has been able to expand its e-commerce fulfillment network for parcels by 167%.

Ryder President of Global Supply Chain Solutions Steve Sensing told LM that the need for Ryder to expand its e-commerce fulfillment network and add food grade capabilities stemmed from the company continuing to see increasing demand for e-commerce solutions from the consumer packaged goods and food and beverage segments.   

“Across our network, Ryder’s strategy continues to be to get as close as possible to the end customer, and, the more facilities you have, the quicker you can serve that customer,” he said.

And he noted that while Ryder did open up a new Philadelphia-area facility, the company did launch a 60,000 square foot e-commerce operation in that market in 2018.

“This new facility is a result of additional demand for an e-commerce solution to service the East Coast and Midwest, [and]… replaces the other operation,” he said.

When asked about the how the added food grade capabilities serve and provide benefits to shippers, Sensing observed that as consumers become more comfortable purchasing a variety of items online, Ryder is helping to make it easier for retailers and brands to react to those changes and offer a broader assortment of products for direct delivery to their customers.

“By outfitting our e-commerce fulfillment facilities to be food grade, we offer our customers and future customers the ability to generate more volume through an additional channel for their products that are regulated and require handling in certified facilities,” he said.