Ernesto Donnadieu
Director of Operations
Ryder de México
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View from the Top

Expert in Border Crossings Seeks Diversification

Fri, 09/01/2017 - 15:15

Q: What is Ryder’s target market and what strategies have you implemented to assure success?

A: We work with OEMs, Tier 1 suppliers and aftermarket companies. Our coverage is one of our main advantages, coupled with the development of a tailored solution for each of our clients regardless of their requirements or position in the industry. Ryder’s logistics engineers analyze each customer’s situation to detect new opportunities and design build-to-suit solutions. The automotive industry requires precision and quality in each process and clients know we are capable of handling their processes.

We believe that networking is the most efficient way to attract customers. Our prestige and experience in the industry has also helped us create a name for ourselves and word-of-mouth has been an effective tool to establish new relationships. Once we identify a potential client, we can arrange presentations to show our capacities and current operations, highlighting our results, our key performance indicators and the services we can provide.

Q: How is Ryder taking advantage of the number of border crossings by truck between Mexico and the US?

A: Our focus is to make things easier for our customers during cross-border operations. Our priorities are time and cost reduction at both the north and south borders and to manage that, we have several safety and quality certifications, including the Authorized Economic Operator designation granted by the European Commission. This gives us a direct link with customs offices, avoiding delays. We also work with authorities from Mexico and the US to ensure our trucks are allowed to use express lanes at the borders.

Our integrated service helps us guarantee our clients that border crossings will take us between two and three hours. When a truck departs to the US, we start filling out all customs clearance documents so that everything is ready when drivers arrive at the border, preventing delays due to paperwork. Our goal is to do as much as we can in advance, which means that our quality must be on point to avoid any possible mistakes. In addition, we always make sure our trucks meet all standards and regulations to avoid any passing restrictions.

Q: What are the advantages of leasing a fleet over owning one and how have you transmitted those advantages to clients?

A: Ryder has one of the biggest fleets in North America. This helps us acquire equipment at preferential prices, which allows us to provide the vehicles our clients’ operations require. If we are going to transport heavy merchandise, for example, we can ensure the truck has the correct engine for the job, a good transmission and everything that it needs to save fuel and make its operation as efficient as possible. We have been in the market for 80 years. Customers can trust us and invest in their own business rather than in transport units.

Q: How attractive have your natural gas units been among your automotive clients?

A: Sustainability is a priority for the company. Our natural gas units are currently restricted to the US market, along with electric trucks and hydrogen units, although we plan to introduce those in the future. However, we also have several environmental projects in Mexico. We are currently trying to reduce power consumption in our warehouses. The company is converting all its lighting systems to LED, resulting in less energy consumption. We always strive to reduce costs and anything that can help us achieve that is welcome.

Q: What are Ryder’s growth projections for 2017?

A: We will finish 2017 with double-digit growth in comparison with 2016, which is a better result than what we expected due to economic uncertainty and the volatile dollar-peso exchange-rate. We have been in Mexico for 23 years and to date we have 3,000 employees and 3.5 million ft2 of leased storage space. We trust in Mexico’s growth and we are optimistic about the local business opportunities we can explore. The automotive industry represents 40 percent of our revenue and although it will always be our core market, in the coming years our goal is to diversify into other industries.