Logistics giant Ryder has unveiled a new e-commerce fulfillment solution designed to help consumer goods manufacturers of all sizes transition to direct-to-consumer (DTC) sales models, addressing growing frustrations with third-party marketplace commissions and limited brand presentation opportunities.
Steve Sensing, President of Global Supply Chain Solutions at Ryder, clarified in an email statement: "This is a comprehensive fulfillment and shipping solution, not a new e-commerce platform. Customers will continue selling products on their own websites while Ryder handles order picking, packing, and shipping. This allows brands to maintain control over front-end consumer experiences while we focus on efficient product delivery."
Key Advantages of Ryder's E-Commerce Solution
The new offering presents several compelling benefits for brands exploring DTC models:
- Brand Experience Control: Direct sales through proprietary websites enable complete customization of user interfaces, product displays, and customer service interactions.
- Cost Reduction: Elimination of third-party platform commissions and fees improves profit margins.
- Data Ownership: Direct access to consumer data provides valuable insights for product development and marketing strategies.
- Logistics Expertise: Leveraging Ryder's established network ensures reliable, flexible fulfillment operations.
Infrastructure Expansion Supports Growth
To support the new service, Ryder is expanding its logistics infrastructure with new facilities in Perris, California and Fort Worth, Texas, plus an expansion of its existing Douglasville, Pennsylvania warehouse. These investments significantly enhance the company's fulfillment capacity to meet growing e-commerce demands.
Industry-Wide Shift Toward Fulfillment Services
Ryder's move reflects a broader industry trend where logistics providers increasingly participate throughout the supply chain. The company established a last-mile delivery network covering 11 North American markets before the 2018 holiday season, claiming two-day delivery coverage for 95% of U.S. locations—a strong foundation for e-commerce fulfillment.
A pilot program with a major global appliance manufacturer demonstrated the solution's effectiveness, achieving 99.9% on-time and complete delivery rates during Black Friday and Cyber Monday events.
Strategic Acquisitions Complement Organic Growth
Ryder's acquisition of MXD Group, an e-commerce fulfillment specialist for large and bulky goods, strengthens its last-mile capabilities. This forms part of a dual-strategy approach combining organic development with strategic purchases to build comprehensive e-commerce solutions.
The company continues to face challenges in the large-item fulfillment sector, where specialized equipment, packaging requirements, and installation services create operational complexities. Industry competitors including FedEx, J.B. Hunt, and UPS are similarly developing solutions for this growing but demanding market segment.
Market Implications and Future Outlook
Ryder's entry into e-commerce fulfillment signals shifting dynamics in retail logistics, offering brands alternatives to marketplace dependence while pushing service innovation across the industry. The company plans continued investments in technology and infrastructure, exploring applications of artificial intelligence and data analytics to enhance operational efficiency.
For manufacturers, this development highlights the importance of evaluating DTC strategies, prioritizing brand experience, and selecting logistics partners capable of supporting direct sales models. As e-commerce evolves, fulfillment services will play an increasingly critical role in determining competitive advantage.