Chocolate pricing

Ryder Spends $ 480 Million To Expand Ecommerce Execution Capabilities

Logistics and Transportation Provider Ryder System Inc. continues to expand its national e-commerce order processing network, announcing today the acquisition of omnichannel logistics service provider (LSP) Whiplash, formerly known as Port Logistics Group, for $ 480 million.

Moving comes just six weeks after Miami-based Ryder bought Midwest Warehouse & Distribution System, adding the company’s 17 warehouse locations in the Midwest and Texas to its portfolio at a time when booming e-commerce activity has pushed demand for warehouses in the United States to record levels.

Ryder is now picking up another string of those rare DCs, including 19 dedicated and multi-client warehouses in seven states. With the expansion of the footprint following the acquisition, Ryder’s e-commerce and omnichannel fulfillment solution is expected to be able to deliver to 100% US within two days and 60% US in one day, the company said.

Before change name in may, Whiplash has made big investments in technology, like its Deployment in 2020 of more than 150 autonomous mobile robots (AMR) of Locus Robotics in a single warehouse in California, saying automation would help it manage peaks in e-commerce.

Ryder is now announcing its intention to retain the leadership team and workforce of California-based Whiplash as it integrates facilities, operations, technology and warehouse automation and robotics into its e-commerce processing solution within the Supply Chain Solutions business unit.

The two companies plan to complete their transaction in late December 2021 or early January 2022, subject to antitrust approvals and customary closing conditions. Ryder said Whiplash would then add $ 480 million in gross revenue to Ryder’s supply chain solutions business segment in 2022.

“The acquisition of Whiplash is consistent with our strategy to accelerate the growth of our higher yielding supply chain business. It also expands our omnichannel e-commerce and fulfillment network and reflects our continued focus on technology and innovation, ”said Robert Sanchez, President and CEO of Ryder, in a statement.

According to Ryder Global Supply Chain Solutions President Steve Sensing, the company has seen e-commerce sales continue to hit record highs and omnichannel retailing has become mainstream, leading to a significant increase in the number of brands. looking for more dynamic execution services.

Industry watchers have said this approach makes sense, as the best way to compete in the long term in logistics is to increase the physical scale in order to realize the economies of scale that produce competitive prices, according to Jason Murray, CEO of Shipium, an e-commerce platform provider.

As a well-regarded incumbent operator in the logistics industry, Ryder achieves this goal by acquiring Whiplash, which is known as one of the most modern ‘technological’ third-party logistics (3PL) providers, said. he declares. Armed with its larger size, Ryder can now compete with companies like Rakuten and XPO for market share in fast-growing industries like small e-commerce startups providing direct-to-consumer (DTC) products like shoes or chocolate, Murray said.