Macroeconomic and business trends are creating greater opportunities for Ryder to penetrate the significant market of companies that are not yet outsourcing their fleets and supply chains.
Only 10% of the North American trucking and supply chain market is currently outsourced. However, there are an increasing range of challenges that are driving more businesses to consider outsourcing their transportation and logistics functions.
- Tightening fleet capacity
- Increasing cost and complexity to maintain new vehicle technologies and comply with environmental and safety regulations
- A shortage of qualified drivers and maintenance technicians
- Energy cost volatility
- Access to capital to support the increased cost of fleet equipment
Ryder is well positioned to take advantage of these trends and the resulting increased demand for the company’s services by offering new, innovative solutions, delivering flawless execution, and attracting and retaining the best talent in the industry. Specifically, Ryder has implemented a number of initiatives focused on driving increased levels of outsourcing.
For example, Ryder has developed a Total Cost of Ownership tool that enables private fleets to better understand their transportation costs, and ultimately, quantify the savings they can realize by outsourcing to Ryder. The company has also significantly enhanced its investment in marketing, including the launch of a national advertising campaign that has increased awareness of the Ryder brand and generated a significant number of qualified new business leads. New products, such as on-demand maintenance, are making it easier to do business with Ryder, and attracting new business from companies that have previously not outsourced. These initiatives, supported by the trends described above, are enabling us to make progress on our strategy to penetrate the 90% of businesses that still manage their fleets and supply chains on their own. In fact, in 2014, approximately one-third of new lease sales came from customers that are new to outsourcing.