Ryder snaps up e-commerce fulfillment provider MXD

Miami-based Ryder System, Inc. said the $120 million deal positions it to become the second largest last-mile delivery provider of big and bulky goods across the United States and Canada.    Ryder System, Inc. has acquired MXD Group, an e-commerce fulfillment provider, for $120 million.
   Miami-based Ryder said the deal will give it a larger e-commerce fulfillment network, positioning it as the second largest last-mile delivery provider of big and bulky goods across the United States and Canada. XPO Logistics is the largest provider of last-mile logistics for heavy goods in North America.
   Consulting firm AlixPartners published a report last month that said a survey of over 1,000 consumers found resistance to buying large or bulky products online is waning.
   Ryder said it has acquired “109 MXD e-commerce fulfillment facilities across the U.S. and Canada, including 21 MXD-operated cross dock hubs, 16 dedicated operations, and a network of 72 third-party agent facilities. The acquisition also includes proprietary order management and visibility technology, which features real-time tracking and a customer service portal for rapid response and resolution.”
   As a result of the deal, Ryder’s network now includes 121 e-commerce hubs covering over 95 percent of the U.S. and Canada within a two-day delivery timeframe. “The network can serve any industry, as it can handle big and bulky products as well as small and large parcels,” Ryder said.
   Ryder added how its “last mile solution for retailers and shippers of big and bulky products will include home delivery and white glove installation with multiple tiers of service and a network of carriers throughout the U.S. and Canada.”
   Commenting on the deal, Ryder Chairman and CEO Robert Sanchez said it “will enable many of the businesses we serve to better meet their customers’ demands, which are constantly and rapidly changing amid a heightened e-commerce era.”
   The AlixPartners study suggested, “Furniture sellers will need to move quickly to devise offers that include free shipping and develop the infrastructure needed to assure prompt delivery. Last-mile carriers with capacity to handle oversized, non-standard package sizes have an opportunity to fill the gap opened up by the largest logistics providers’ reluctance – or outright refusal – to handle those packages.”