Ryder & BJC Health System Secure SMI Collaboration Award for Transforming Healthcare Supply Chain, Enhancing Patient Care
MWN-AI** Summary
Ryder System, Inc. and BJC Health System have been awarded the prestigious SMI Tom Hughes Collaboration Award for their innovative partnership that redefines the healthcare supply chain, significantly enhancing patient care across BJC's 14 hospitals. This annual award, presented by SMI, celebrates transformative collaborations that drive meaningful change in healthcare logistics.
Recognizing inefficiencies in traditional models that detract from patient care, BJC sought to create a more effective supply chain by partnering with Ryder, a third-party logistics provider. Their collaboration began in December 2020 and focused on building a cutting-edge supply chain distribution model while addressing the heightened demand for speed and agility during the COVID-19 pandemic. Together, they designed a 416,000-square-foot Consolidated Services Center (CSC) that merges supplier channels and ensures a continuous flow of critical medical supplies to key healthcare facilities.
The results of this collaboration are remarkable. Hospital order fulfillment rates surged from 90% to over 99%, and on-time, in-full delivery rates increased significantly. This was achieved alongside an 80% drop in order processing costs and improved nursing unit service levels exceeding 98.5%. Investment in technology, including automated warehouse management systems and Ryder's proprietary RyderShare™ platform, allows for real-time visibility, inventory control, and enhanced responsiveness to crises.
Cherie Brinkerhoff, Ryder’s SVP of Supply Chain Solutions, emphasized the unity of purpose shared by both organizations, illustrating their commitment to improving patient care. This partnership not only reduced BJC's capital outlay but also enhanced overall logistics resilience, setting a new benchmark for healthcare supply chains.
MWN-AI** Analysis
Ryder System, Inc. (NYSE: R) has been awarded the prestigious SMI Tom Hughes Collaboration Award, alongside BJC Health System, for their transformative efforts in healthcare supply chain management. This collaboration has led to critical advancements, notably achieving near 100% fulfillment rates and real-time visibility across 14 hospitals. As a financial analyst, it's important to highlight how this strategic partnership positions Ryder favorably in the logistics and healthcare sectors.
The collaboration signifies a critical shift towards patient-centric healthcare logistics, breaking away from traditional models that previously hindered clinician efficiency. BJC Health System identified inefficiencies in its supply chain and sought Ryder’s expertise to develop a more automated and streamlined approach, which is now reaping substantial benefits, including reduced order processing costs and enhanced service levels.
From an investment perspective, Ryder appears to be on a robust growth trajectory, given its successful implementation of the 416,000-square-foot Consolidated Services Center, which streamlines supplier channels and provides continuous supply of critical care materials. The 80% reduction in order processing costs and a significant jump in on-time delivery rates underscore its operational efficiency. Such metrics are crucial not only for patient care but also in building investor confidence regarding the company’s future profitability.
With a relentless focus on innovation, Ryder has positioned itself as a leader in a growing market. As healthcare continues to evolve, companies that invest in efficient logistics and supply chain management are likely to prosper. Ryder’s commitment to scalable solutions and ability to enhance inventory control adds to its attractiveness as a long-term investment. Stakeholders should closely monitor Ryder's performance and potential partnerships, as similar collaborations could further amplify its market share and operational excellence.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Strategic Collaboration Delivers Near 100% Fulfillment Rates , 100% Real-Time Visibility , and Resilient Medical Logistics Across 14 Hospitals
Ryder System, Inc. (NYSE: R) and BJC Health System , based in St. Louis, Missouri, secure the prestigious SMI Tom Hughes Collaboration Award for their transformative work in reshaping the healthcare supply chain to improve patient care and redefine product delivery. Presented annually by SMI, a non-profit community of healthcare providers and industry partners, the award honors innovative collaborations that drive meaningful change in healthcare logistics.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20251119228189/en/
Pictured (left to right): Steve Gundersen, SMI Chair Emeritus; Tom Harvieux, BJC Health System SVP & Chief Supply Chain Officer; Jason Luby, BJC Health System VP Value Chain and Sourcing Operations; Cherie Brinkerhoff, Ryder SVP Supply Chain; Jeff Abeson, Ryder VP Business Development; Jane Pleasants, SMI President.
“With BJC’s visionary leadership and Ryder’s operational expertise , this collaboration exemplifies the spirit of this award – healthcare supply chain’s absolute best models of healthcare supply chain collaborators working together to deliver patient-centric healthcare in a time of transformative change,” says Jane Pleasants, SMI President.
In 2019, BJC’s East Region identified inefficiencies in the traditional healthcare supply chain model that pulled clinicians away from patient care. Seeking a third-party logistics provider (3PL) to help build a patient-centric model, BJC selected Ryder to help reshape its supply chain distribution model.
“To break industry norms of the past 20 years, we looked for innovation that could bring best practices from more mature supply chains , like automotive and high tech,” says BJC Senior Vice President and Chief Supply Chain Officer Tom Harvieux . “In December 2020, we embarked on our transformational journey, and by that time, we were in the throes of a pandemic that reinforced the critical need for speed, agility, and resiliency .”
Based on BJC’s vision, Ryder led the design and launch of a 416,000-square-foot Consolidated Services Center (CSC), capable of streamlining all supplier channels and scaling for future growth. With the implementation of automation, the CSC continuously feeds critical care supplies to the BJC East Region’s 14 hospitals, 3,300 beds, and 4,600 physicians 24/7 . Less than one year after opening, the CSC had already achieved servicing levels at 87% or 13,000 daily lines of medical supplies flowing through the channel.
Ryder also engineered highly sequenced deliveries, prioritizing the most critical supplies for immediate access at hospital loading docks.
An advanced warehouse management system and Ryder’s proprietary RyderShare ™ platform provide inventory control, demand planning, and real-time visibility and collaborative problem-solving – ensuring uninterrupted care, even during crises like the 2024 Hurricane Helene IV fluid shortage that impacted the vast majority of hospitals nationwide.
The collaboration also reduced BJC’s capital outlay. And, with direct sourcing capabilities, BJC not only gained full inventory control , but cost transparency .
Key Results
- Hospital order fulfillment rates rose from 90% to more than 99%
- On-time, in-full rates jumped from 27% to 75%
- Order processing costs dropped by 80%
- Nursing unit service levels improved to more than 98.5%
- Inventory-on-hand reduced by 25 days for improved cost, storage management
- 100% inventory control with real-time, end-to-end visibility
“It’s extraordinary – you can’t see where one team ends and the other begins,” says Ryder SVP of Supply Chain Solutions Cherie Brinkerhoff . “From frontline associates to executive leadership, everyone shares in BJC’s mission to improve patient care and save lives. There are patients at the end of this supply chain; they could be our friends, our families, our neighbors. That’s why we show up every day with purpose.”
For more about how Ryder can help healthcare organizations gain greater control over their supply chains while improving patient care, visit https://www.ryder.com/en-us/logistics/industries/healthcare .
To learn more about SMI and the Tom Hughes Collaboration Award , visit https://www.smisupplychain.com/programs/thca/ .
About Ryder System, Inc.
Ryder System, Inc. (NYSE: R) is a fully integrated port-to-door logistics and transportation company. It provides supply chain , dedicated transportation , and fleet management solutions, including warehousing and distribution , contract packaging and manufacturing , e-commerce fulfillment , last-mile delivery , managed transportation , professional drivers , freight brokerage , cross-border solutions, full-service fleet leasing , maintenance , commercial truck rental , and used vehicle sales to some of the world’s most-recognized brands. Ryder provides services to businesses across more than 20 industries throughout the United States, Mexico, and Canada. In addition, Ryder manages nearly 250,000 commercial vehicles, services fleets at approximately 760 maintenance locations, and operates nearly 300 warehouses encompassing more than 100 million square feet. Ryder is regularly recognized for its industry-leading practices; technology-driven innovations; environmental management; safety, health and security programs; and recruitment and hiring initiatives. www.ryder.com
Note Regarding Forward-Looking Statements: Certain statements and information included in this news release are “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current plans and expectations and are subject to risks, uncertainties and assumptions. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements including those risks set forth in our periodic filings with the Securities and Exchange Commission. New risks emerge from time to time. It is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20251119228189/en/
For Information Contact:
Anne Hendricks, amhendricks@ryder.com
Amy Federman, afederman@ryder.com
FAQ**
How does Ryder System Inc. R plan to maintain its near 100% fulfillment rates in medical logistics, especially given the increasing complexities in healthcare supply chains?
What strategic initiatives will Ryder System Inc. R implement to further enhance real-time visibility and inventory control in partnership with BJC Health System?
With the recent achievements in fulfillment and service levels, what specific growth opportunities does Ryder System Inc. R foresee in the healthcare logistics sector moving forward?
How does the SMI Tom Hughes Collaboration Award impact Ryder System Inc. R’s reputation and market positioning in the competitive logistics industry?
**MWN-AI FAQ is based on asking OpenAI questions about Ryder System Inc. (NYSE: R).
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