Con-way's Menlo Worldwide Logistics rolls out Menlo Transportation Services to deliver solutions to cut waste, create new efficiencies, improve network operations

Liling Tan

SAN MATEO, California , October 3, 2011 (press release) – Menlo Worldwide Logistics, the global logistics subsidiary of Con-way Inc. (NYSE: CNW - News), today announced the roll out of Menlo Transportation Services, its next-generation transportation management portfolio designed to deliver optimized solutions that remove waste, create new efficiencies and introduce Lean continuous improvement processes to transportation network operations.

Menlo has long been a leader in the adoption of Lean principles and practices in the global supply chain management arena, noted Robert L. Bianco Jr., Menlo's president. The introduction of Menlo Transportation Services marks a concerted effort by the company to leverage this experience and expertise -- which has delivered proven results in 3PL and 4PL customer supply chain engineering engagements -- into a comprehensive, next-generation service offering for transportation network management, both regionally and globally.

"Transportation networks and the operating costs they generate are one of the largest expenditure areas for any supply chain," Bianco said. "And while we have managed transportation capacity for our customers since Menlo's inception, the difference today is that customers want more specific capabilities and solutions, with rapid deployment and faster cost-saving results."

"They want proven best practices, coupled with experienced people using the latest systems to plan, optimize, execute, measure and improve their transportation processes as a whole, across the full gamut from sourcing to settlement, or at the individual node level," Bianco continued. "And they want it delivered as an outsourced, flexible service that can scale to their needs and flows in the supply chain. That's what Menlo Transportation Services will do."

Within the Menlo Transportation Services portfolio are two primary service offerings: Solution Engineering and Transportation Management. Both offerings leverage seasoned transportation and logistics professionals applying Lean methodologies and best-in-class standardized practices to deliver innovative, cost-efficient services unique to individual customer needs.

Solution Engineering: utilizes expert personnel employing state-of-the-art technology tools to design more efficient, faster and more reliable transportation networks, globally or regionally. This service offering encompasses capabilities to:

Assess, benchmark and understand the current state of transportation networks.
Identify areas of waste and inefficiency using Lean tools and methodologies.
Design, test and optimize alternative operating models and transportation network designs.
Develop and implement a road map and timeline to deploy redesigns and/or introduce network improvements.
Measure and evaluate the new operating model to ensure projected benefits are being captured. Where shortfalls exist, identify root causes of failure, develop and deploy corrective actions.

Transportation Management: deploys expert personnel utilizing disciplined processes and integrated best-of-breed software applications to execute a full menu of transactional transportation functions, across all modes, within or between geographies. This service offering encompasses capabilities to:

Evaluate and source transportation resources, manage freight transportation contracts and rates; create value and operating synergies with transportation service providers.
Tender and manage freight shipments, and confirm acceptance of planned shipments by carriers across all modes, including status of multiple events in the transport cycle from pickup, to in-transit monitoring through delivery.
Integrate product and order information (such as sales or purchase orders) with transportation data and documents to provide a single, holistic view of goods in transit, with visibility to product orders as well as transportation transactions.
Settle and pay freight charges, and audit charges against contract rates.
Track and manage claims for short, damaged or missing shipments.
Generate performance analytics and business intelligence on transportation spend and service metrics to drive additional predictive modeling, qualitative measurement and gap analysis to identify, validate and implement continuous improvement opportunities.

As a comprehensive service offering, Menlo Transportation Services provides a powerful combination of skilled people, proven processes and best-in-class technologies, all built on a foundation of Lean principles and practices. This structured approach provides a framework for collaborative engagement, and keeps the focus on driving out wasteful practice and achieving consistent gains in efficiency -- a key tenet of Lean, noted Anthony Oliverio, vice president, supply chain services for Menlo.

"We know Lean works in many discrete areas of the supply chain, we've proven it over years of taking customers through Kaizen events and other Lean practices to find new savings," said Oliverio. "We have now focused the power of Lean on the transportation function, creating a next-generation service offering that can achieve significant, transformative savings and value. It's a huge opportunity for our customers."

"Menlo's strategic extension of its Lean expertise into a formalized transportation management offering is a natural evolution for the company, which has long been using Lean practices to drive continuous improvement in warehousing operations and re-engineered supply chains," noted Evan Armstrong, a respected industry analyst and principal with Armstrong & Associates, Inc.

"Menlo has carved out a strong position as one of the leading U.S.-based 3PLs in large part because of its Lean management expertise," said Armstrong. "This approach, already proven in complex supply chain re-engineering projects, has significant promise to bring similar efficiency gains to its customers' transportation management operations."

Armstrong added that Menlo's expanded technology portfolio, which now leverages Oracle's OTM top-tier TM platform, has appreciably increased both its strategic and tactical LLP (lead logistics provider) transportation network management capabilities. "We see the evolution of Menlo's transportation management operations into Menlo Transportation Services as a significant move in recognizing its expanded capabilities and ongoing LLP service line growth," Armstrong concluded.

For more information about Menlo Transportation Services, call (866) 466-3656 or visit us on the web at www.con-way.com/menlotrans.

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Menlo Worldwide Logistics images are available at
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About Menlo Worldwide Logistics
Menlo Worldwide Logistics, LLC, is a US$1.5 billion global provider of logistics, transportation management and supply chain services with operations in five continents, including North America. As a third-party logistics provider, San Mateo, Calif.-based Menlo Worldwide Logistics' services range from dedicated contract logistics to warehouse and distribution management, transportation management, supply chain reengineering and other value-added services including packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client and dedicated facilities. With more than 17 million square feet of dedicated warehouse space in North America, the Asia Pacific, Europe and Latin America, and industry-leading technologies, Menlo Worldwide Logistics creates effective, integrated solutions for the transportation and distribution needs of leading businesses around the world.

Menlo Worldwide Logistics, LLC, is a subsidiary of Con-way Inc. (NYSE: CNW - News), a $5.0 billion diversified freight transportation and logistics company. For more information, please visit us on the Web at www.con-way.com.

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