Case Study: How we helped Ryder dramatically reduce costs – and data headaches
Ryder, a Fortune 500 company, is one of the country's largest operators of leased commercial truck fleets in North America. It has a fleet of more than 170,000 vehicles and employs nearly 30,000 people.
Challenge
Ryder's management team had been given a tall order from the top: slash costs and get control over 73 districts representing 850 locations. One area they knew they needed to get a handle on was vehicle replacement parts purchases, which represented up to 5% of their total expenses.
Analysis
Ryder was regularly paying multiple and off-contract prices for identical parts. Ryder had very limited visibility into overall purchasing patterns and minimal ability to enforce its painstakingly negotiated national purchasing contracts.
Solution
PartsRiver captured Ryder's parts master data in both electronic and paper formats and fed these efficiently and accurately into the sourcing decisions. Once the business rules and the data quality services were deployed, PartsRiver collapsed the part number redundancy and exposed large price variances and potential savings to Ryder.
PartsRiver delivered clean, standardized and current parts data to Ryder in less than 120 days, which enabled them to:
- Reduce inventory costs by eliminating duplicated, obsolete and excess parts.
- Lower parts spending through better contract compliance.
- Reduce administrative costs and headaches – fewer inquiries, fewer vendors, fewer purchase orders and fewer invoices.
Results
By using PartsRiver's data quality services, Ryder is saving an estimated $10 million annually.