Ryder System Inc., best known for its fleet of rental trucks bearing its name, is getting into e-commerce logistics even faster.
As e-commerce sales continue to hit record highs and omnichannel retailing becomes mainstream, we are seeing a significant increase in the number of brands seeking more dynamic order fulfillment services.
Steve Sensing, President of Global Supply Chain Solutions
Ryder System Inc.
In addition to managing a fleet of 255,000 vehicles, Ryder operates 55 million square feet of warehouse and distribution space and provides supply chain management to a range of industries, including e-commerce.
To expand and diversify its line of logistics services to e-commerce businesses, Ryder acquires Whiplash, a national provider of logistics and fulfillment services, for approximately $ 480 million in cash.
Headquartered in City of Industry, California, Whiplash provides e-commerce and fulfillment services to more than 250 brands. Whiplash operates 19 warehouses totaling seven million square feet and provides access to “key port operations and gateway markets,” the company said.
The deal is expected to be done before the end of March, Ryder said. “The acquisition of Whiplash is consistent with our strategy to accelerate the growth of our higher yielding supply chain business,” said Robert Sanchez, President and CEO of Ryder. “It also expands our omnichannel e-commerce and fulfillment network and reflects our continued focus on technology and innovation. “
Reach 60% of the United States in one day
Whiplash has been in business since 2007 and offers a range of services including order fulfillment, e-commerce technology, robotics, and distribution and delivery services.
“As e-commerce sales continue to hit record levels and omnichannel retailing becomes mainstream, we are seeing a significant increase in the number of brands seeking more dynamic fulfillment services,” said Steve Sensing. , President of Ryder’s Global Supply Chain Solutions. “Our combined customers will benefit from this added flexibility as well as Ryder’s nationwide network. “
Once the deal is done, Ryder’s omnichannel e-commerce and fulfillment services are expected to be able to deliver 100% to the United States within two days and 60% to the United States within one day, according to the company.
Ryder will integrate warehouse facilities, operations, technology, automation and robotics into its e-commerce processing operations within the Supply Chain Solutions business unit, Ryder said.
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