18.11.2012 Views

Who's Who in Logistics and Supply Chain Management

Who's Who in Logistics and Supply Chain Management

Who's Who in Logistics and Supply Chain Management

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

20 th Edition


20th Edition<br />

<strong><strong>Who</strong>'s</strong> <strong>Who</strong> <strong>in</strong> <strong>Logistics</strong> <strong>and</strong> <strong>Supply</strong> Cha<strong>in</strong> <strong>Management</strong> - International<br />

All Rights Reserved.<br />

* Twentieth Edition *<br />

© Copyright 2012<br />

Armstrong & Associates, Inc.<br />

100 Bus<strong>in</strong>ess Park Circle, Suite 202, Stoughton, WI 53589 USA<br />

Phone: +1-608-873-8929 Fax: +1-608-873-5509<br />

www.3P<strong>Logistics</strong>.com<br />

No part of this publication may be reproduced, stored <strong>in</strong> a retrieval system or transmitted <strong>in</strong> any form by any means,<br />

electronic, mechanical, photocopy<strong>in</strong>g, record<strong>in</strong>g or otherwise, without the prior permission of the publisher, Armstrong &<br />

Associates, Inc.<br />

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that<br />

the f<strong>in</strong>d<strong>in</strong>gs, conclusions <strong>and</strong> recommendations that Armstrong & Associates delivers will be based on <strong>in</strong>formation<br />

gathered <strong>in</strong> good faith from both primary <strong>and</strong> secondary sources, whose accuracy we are not always <strong>in</strong> a position to<br />

guarantee. As such Armstrong & Associates can accept no liability whatever for actions taken based on any <strong>in</strong>formation<br />

that may subsequently prove to be <strong>in</strong>correct.<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

Page 2 of 768


20th Edition<br />

Table of Contents Page<br />

Section 1 - Top Global 3PLs<br />

Global 3PL Revenues<br />

Section 2 - International <strong>Logistics</strong> Providers<br />

Def<strong>in</strong>itions <strong>and</strong> Explanations of Terms<br />

3PL Panamericana C.A.<br />

ACCEL Logística<br />

AFL <strong>Logistics</strong><br />

Agility Public Warehous<strong>in</strong>g Company<br />

Aimar S.A.<br />

Aimi Consolidaciones S.A.<br />

All-l<strong>in</strong>ks <strong>Logistics</strong> Group<br />

Almacenadora Mercader S.A. (ALMER)<br />

Almacenadora, S.A.<br />

Almaviva S.A.<br />

Alpopular S.A.<br />

América Lat<strong>in</strong>a Logística S.A. (ALL)<br />

APL <strong>Logistics</strong><br />

Aqua <strong>Logistics</strong> Limited<br />

Aramex<br />

Archbold <strong>Logistics</strong> Ltd.<br />

ARS Altmann AG<br />

arvato logistics services<br />

Barloworld <strong>Logistics</strong><br />

BDP International<br />

Beij<strong>in</strong>g Baolong <strong>Logistics</strong> Co., Ltd.<br />

Beij<strong>in</strong>g East Express <strong>Logistics</strong> Co., Ltd.<br />

Beij<strong>in</strong>g Harmony Shipp<strong>in</strong>g & Forward<strong>in</strong>g Agent Co., Ltd.<br />

BEL International <strong>Logistics</strong> Limited<br />

Belfor <strong>Logistics</strong> N.V.<br />

Bibby Distribution Ltd<br />

B<strong>in</strong>otto S.A.<br />

BLG <strong>Logistics</strong> Group AG & Co. KG<br />

Blue Express International S.A.<br />

Bomi de Mexico, S.A. de C.V.<br />

C&D <strong>Logistics</strong> Group Co., Ltd.<br />

C.H. Rob<strong>in</strong>son Worldwide, Inc.<br />

Cargo Express International (H.K.) Ltd.<br />

Cargo <strong>Logistics</strong> (Xiamen) Co., Ltd.<br />

Cargo Services Far East Limited<br />

Caterpillar <strong>Logistics</strong> Services LLC<br />

Celsur Logística S.A.<br />

CEVA <strong>Logistics</strong><br />

Ch<strong>in</strong>a Conta<strong>in</strong>er L<strong>in</strong>e Limited (CCL)<br />

Ch<strong>in</strong>a Resources <strong>Logistics</strong> (Group) Ltd.<br />

CHINATRANS International Limited<br />

City Ocean <strong>Logistics</strong> Co., Ltd.<br />

CTC International <strong>Logistics</strong> Co., Ltd.<br />

CWT <strong>Logistics</strong><br />

DACHSER GmbH & Co. KG<br />

Damco International A/S<br />

DB Schenker <strong>Logistics</strong><br />

De Well Group<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

8<br />

10<br />

13<br />

16<br />

19<br />

23<br />

31<br />

34<br />

37<br />

40<br />

43<br />

46<br />

49<br />

52<br />

58<br />

69<br />

74<br />

79<br />

82<br />

85<br />

90<br />

96<br />

102<br />

105<br />

108<br />

111<br />

114<br />

118<br />

123<br />

126<br />

132<br />

135<br />

138<br />

141<br />

151<br />

154<br />

157<br />

162<br />

170<br />

174<br />

183<br />

186<br />

190<br />

193<br />

196<br />

199<br />

205<br />

212<br />

218<br />

226<br />

Page 3 of 768


20th Edition<br />

Section 2 - International <strong>Logistics</strong> Providers<br />

Deufol AG<br />

DFDS <strong>Logistics</strong><br />

DHL <strong>Supply</strong> Cha<strong>in</strong> & Global Forward<strong>in</strong>g<br />

Dimerco Express<br />

DSV A/S<br />

Emons Spedition GmbH<br />

Encompass Global <strong>Logistics</strong><br />

ESA <strong>Logistics</strong> (HK) Co., Ltd.<br />

Everl<strong>in</strong>k International <strong>Logistics</strong> Co., Ltd.<br />

Ewals Cargo Care B.V.<br />

Expeditors International of Wash<strong>in</strong>gton<br />

Fans Trans International Ltd.<br />

Fatton Transport<br />

FedEx <strong>Supply</strong>Cha<strong>in</strong>/FedEx Trade Networks<br />

Fiege Logistik Stiftung & Co. KG<br />

Freight L<strong>in</strong>ks Express Hold<strong>in</strong>gs Limited<br />

GEFCO<br />

Geodis<br />

GIRAG<br />

GNK Logística S.A. de C.V.<br />

Grupo TPC<br />

Guangzhou City Star <strong>Logistics</strong> Co., Ltd.<br />

Guangzhou Hutchison <strong>Logistics</strong> Services Co. Ltd.<br />

Headw<strong>in</strong> <strong>Logistics</strong> Co., Ltd.<br />

Hellmann Worldwide <strong>Logistics</strong> GmbH & Co. KG<br />

Hercules <strong>Logistics</strong> & Forward<strong>in</strong>g Ltd.<br />

HMG <strong>Logistics</strong> Co., Ltd.<br />

Hunan S<strong>in</strong>sa <strong>Logistics</strong> Investment Co., Ltd.<br />

HurryTop <strong>Logistics</strong>/Ch<strong>in</strong>a Network <strong>Logistics</strong><br />

Hyundai GLOVIS Co., Ltd.<br />

I.T.S. Fabry SA<br />

IDS Group/LF <strong>Logistics</strong><br />

IMPERIAL <strong>Logistics</strong> Southern Africa<br />

Integrated <strong>Logistics</strong> Berhad<br />

ITG GmbH Internationale Spedition + Logistik<br />

J<strong>in</strong>gmao Express (Suzhou) Co., Ltd.<br />

JSL S.A.<br />

Kelron <strong>Logistics</strong><br />

Kerry <strong>Logistics</strong><br />

K<strong>in</strong>tetsu World Express, Inc. (KWE)<br />

Konsortium Logistik Berhad<br />

Kuehne + Nagel<br />

Levent<br />

LGI <strong>Logistics</strong> Group International GmbH<br />

Liv<strong>in</strong>gston International, Inc.<br />

Log-In Logística Intermodal S.A.<br />

Logística Industrial S.A. (Log<strong>in</strong>sa)<br />

Logw<strong>in</strong> AG<br />

LS Distribution North America<br />

Luís Simões<br />

Ma<strong>in</strong>freight Limited<br />

Manco <strong>Logistics</strong> Co., Ltd.<br />

Menlo Worldwide <strong>Logistics</strong><br />

N<strong>in</strong>gbo Hailian <strong>Logistics</strong> Co., Ltd.<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

230<br />

236<br />

240<br />

251<br />

256<br />

261<br />

264<br />

268<br />

271<br />

274<br />

279<br />

286<br />

289<br />

292<br />

298<br />

303<br />

308<br />

316<br />

322<br />

325<br />

328<br />

331<br />

334<br />

337<br />

340<br />

345<br />

348<br />

351<br />

354<br />

358<br />

363<br />

366<br />

374<br />

379<br />

384<br />

387<br />

390<br />

394<br />

399<br />

403<br />

408<br />

412<br />

420<br />

423<br />

427<br />

434<br />

438<br />

441<br />

447<br />

450<br />

453<br />

459<br />

462<br />

471<br />

Page 4 of 768


20th Edition<br />

Section 2 - International <strong>Logistics</strong> Providers<br />

Nippon Express Co., Ltd.<br />

Niss<strong>in</strong> Corporation/Niss<strong>in</strong> Group<br />

Norbert Dentressangle<br />

Onest <strong>Logistics</strong><br />

OOCL <strong>Logistics</strong> Ltd.<br />

Oriental <strong>Logistics</strong> Hold<strong>in</strong>gs Co. Ltd.<br />

Panalp<strong>in</strong>a World Transport (Hold<strong>in</strong>g) Ltd.<br />

Pantos <strong>Logistics</strong> Co., Ltd.<br />

Penske <strong>Logistics</strong><br />

Penta Global <strong>Logistics</strong> Co., Ltd.<br />

Phoenix International Freight Services, Ltd.<br />

Poh Tiong Choon <strong>Logistics</strong> Limited<br />

Q<strong>in</strong>gdao Smart Cargo International Services Ltd.<br />

Rapidão Cometa<br />

Redpack S.A. de C.V.<br />

RichL<strong>and</strong> <strong>Logistics</strong> Services Pte Ltd<br />

Round The World <strong>Logistics</strong> & <strong>Supply</strong> Cha<strong>in</strong> <strong>Management</strong> Ltd.<br />

Rudolph Logistik Gruppe GmbH & Co. KG<br />

Ryder <strong>Supply</strong> Cha<strong>in</strong> Solutions<br />

Sankyu Inc.<br />

Scanwell <strong>Logistics</strong> (HK) Ltd.<br />

SCI Group<br />

SDV/Bolloré <strong>Logistics</strong><br />

Sh<strong>and</strong>ong Jiayi <strong>Logistics</strong> Co., Ltd.<br />

Sh<strong>and</strong>ong Rongq<strong>in</strong>g <strong>Logistics</strong> Co., Ltd.<br />

Shanghai Daj<strong>in</strong> <strong>Logistics</strong> Co. Ltd.<br />

Shanghai Hengrong International Transportation Co., Ltd.<br />

Shanghai Jato <strong>Logistics</strong> Co., Ltd.<br />

Shanghai Kir<strong>in</strong> <strong>Logistics</strong> Co., Ltd.<br />

Shanghai Lifeng <strong>Logistics</strong> Co., Ltd.<br />

Shanghai Sunhua <strong>Logistics</strong> Co., Ltd.<br />

Shenzhen BHT SCM Group Co., Ltd.<br />

Sichuan J<strong>in</strong>qiao <strong>Logistics</strong> Co., Ltd.<br />

S<strong>in</strong>osun <strong>Logistics</strong> Co., Ltd.<br />

S<strong>in</strong>otrans Ltd.<br />

STACI<br />

Sudamericana Agencias Aéreas y Marítimas S.A. (SAAM)<br />

Sun <strong>Logistics</strong><br />

Suppla S.A.<br />

Suzhou City Rij<strong>in</strong> <strong>Logistics</strong> Co., Ltd.<br />

Suzhou Intorus Warehouse Co., Ltd.<br />

Suzhou Orient Bestway International Transport Co., Ltd.<br />

Tegma Gestão Logística S.A.<br />

The Leader <strong>Logistics</strong> Co., Ltd.<br />

Tigers Limited<br />

Tito Global Trade Services LLC<br />

TMM <strong>Logistics</strong>, S.A. de C.V.<br />

Toll Global Forward<strong>in</strong>g Limited<br />

Toll Hold<strong>in</strong>gs Limited<br />

TRADISA<br />

Trans-Ch<strong>in</strong>a <strong>Logistics</strong> Co., Ltd.<br />

Trans-Hope International <strong>Logistics</strong> Co., Ltd.<br />

Transport Corporation of India Ltd.<br />

Transportadora Americana Ltda.<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

474<br />

480<br />

483<br />

488<br />

491<br />

496<br />

500<br />

507<br />

511<br />

519<br />

522<br />

527<br />

530<br />

533<br />

538<br />

542<br />

546<br />

549<br />

552<br />

560<br />

564<br />

568<br />

574<br />

579<br />

582<br />

585<br />

588<br />

591<br />

594<br />

597<br />

600<br />

603<br />

606<br />

609<br />

612<br />

618<br />

621<br />

624<br />

628<br />

632<br />

635<br />

638<br />

641<br />

646<br />

649<br />

652<br />

655<br />

659<br />

665<br />

671<br />

674<br />

677<br />

680<br />

687<br />

Page 5 of 768


20th Edition<br />

Section 2 - International <strong>Logistics</strong> Providers<br />

UPS <strong>Supply</strong> Cha<strong>in</strong> Solutions<br />

UTi Worldwide Inc.<br />

VersaCold <strong>Logistics</strong> Services<br />

Wared <strong>Logistics</strong><br />

Werner Egerl<strong>and</strong> Automobillogistik GmbH & Co. KG<br />

Wheels Clipper<br />

W<strong>in</strong>canton plc<br />

Wuhan Dadao <strong>Logistics</strong> Co., Ltd.<br />

Wuhu Annto <strong>Logistics</strong> Co., Ltd.<br />

Yobel <strong>Supply</strong> Cha<strong>in</strong> <strong>Management</strong><br />

Yusen <strong>Logistics</strong> Co., Ltd.<br />

Ze Han <strong>Logistics</strong> Co., Ltd.<br />

Zhejiang Int'l <strong>Logistics</strong> Co., Ltd.<br />

Zhejiang Jiulong International <strong>Logistics</strong> Co., Ltd.<br />

Zhejiang Lutong <strong>Logistics</strong> Co. Ltd.<br />

Zhejiang Sunmarr International Transportation Co., Ltd.<br />

Zimag <strong>Logistics</strong><br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

690<br />

699<br />

713<br />

718<br />

722<br />

725<br />

730<br />

734<br />

737<br />

740<br />

743<br />

751<br />

754<br />

757<br />

760<br />

763<br />

766<br />

Page 6 of 768


Company Name Menlo Worldwide <strong>Logistics</strong><br />

Address: 2855 Campus Dr., Ste. 300, San Mateo, CA 94403 USA<br />

Phone Number: 866-466-3656<br />

Email Address: <strong>in</strong>fo@menloworldwide.com<br />

Fax Number: 650-378-5484<br />

Website Address: www.menloworldwide.com<br />

COMPANY BACKGROUND<br />

Parent Corporation: Con-way, Inc.<br />

Year Started <strong>in</strong> <strong>Logistics</strong>: 1990<br />

Market Area: Global<br />

Found<strong>in</strong>g Bus<strong>in</strong>ess: Motor & Airfreight Transportation<br />

OVERALL CAPABILITY<br />

KEY PERSONNEL<br />

FINANCIAL INFORMATION (LATEST FULL YEAR)<br />

ASSETS<br />

MAJOR MARKETS<br />

INFORMATION SYSTEMS<br />

Asset Focus: N<br />

(A = Asset Based, N = Non Asset Based)<br />

Subsidiaries or Related Companies<br />

Con-way Freight<br />

Con-way Truckload<br />

Con-way Multimodal<br />

Overall Capability of Provider: Tier 1, major markets global supply cha<strong>in</strong> manager <strong>and</strong> lead logistics provider.<br />

Robert Bianco President<br />

Robert Bassett VP Sales & Market<strong>in</strong>g<br />

Sheila Taylor SVP F<strong>in</strong>ance<br />

Gary Kowalski COO John Herb VP Human Resources<br />

Total <strong>Logistics</strong> Revenue ($Millions): 1,590<br />

Total Net <strong>Logistics</strong> Revenue ($Millions): 602 **<br />

Total <strong>Logistics</strong> Employees (Includ<strong>in</strong>g Drivers): 6,500<br />

Total Long-Term Contracts Held: 250<br />

Average Length of <strong>Logistics</strong> Contract (Years): 3-5<br />

Dedicated Contract Carriage Power Units/Trucks:<br />

Total Tractors: 34<br />

Total Trucks: 55<br />

Total Other: 9<br />

Dedicated Contract Carriage Trailers:<br />

Total Dry Van: 80<br />

Total Reefers:<br />

Total Flatbeds:<br />

Total Tankers:<br />

Total Other:<br />

Total Transportation Assets:<br />

Total Tractors:<br />

Total Trucks:<br />

Total Trailers:<br />

Total Aircraft:<br />

Total Ocean:<br />

Total Other:<br />

INT'L FREIGHT FORWARDING/NVOCC VOLUMES<br />

Total Annual Ocean TEUs:<br />

Total Annual Airfreight Metric Tons:<br />

Ticker Symbol CNW<br />

Exchange: NYSE<br />

Total Warehouses & Distribution Centers:<br />

Total Warehouses/DC's: 137<br />

Whse/DC Space (MSF):<br />

Total with Rail Doors:<br />

18<br />

Avg Truck Doors per DC:<br />

Asset Ownership v.s. Leased:<br />

Transportation Equipment: Mostly Leased<br />

Warehouses/DC's: Leased<br />

(For detailed <strong>in</strong>dustry <strong>in</strong>formation, see "Customers" section.)<br />

Overall Information Systems Rat<strong>in</strong>g: E (E=Excellent, G=Good, C=Capable/Adequate, <strong>and</strong> I=Inadequate)<br />

Software Type: Software Vendor/Br<strong>and</strong>:<br />

Transportation <strong>Management</strong> System (TMS): Oracle--OTM, Proprietary--LMS, TRAXi3<br />

Transportation Plann<strong>in</strong>g <strong>and</strong> Optimization: Oracle--OTM, Proprietary--LMS, Infor/CAPS<br />

Warehouse <strong>Management</strong> System (WMS): Infor WM Provia (Menlo modified), SIMS<br />

Network Model<strong>in</strong>g/Site Location: IBM/LogicTools, Infor/CAPS<br />

Freight Bill Audit/Payment Software: TMS, Proprietary--LMS<br />

ERP/Order <strong>Management</strong> System: Proprietary--LMS<br />

Other Systems Capabilities:<br />

Bar Cod<strong>in</strong>g<br />

Dem<strong>and</strong> & <strong>Supply</strong> Forecast<strong>in</strong>g<br />

EDI H<strong>and</strong>l<strong>in</strong>g<br />

ERP Interfaces<br />

* F<strong>in</strong>ancial <strong>in</strong>formation may be actual company reported or A&A estimates.<br />

** Net <strong>Logistics</strong> Revenue is net of pass-through revenues for purchased transportation.<br />

*** Average exchange rates for the respective year are used to convert revenues to USD.<br />

Total Licensed Customs Brokers:<br />

Automotive Consumer Goods Elements Food, Groceries Healthcare<br />

Industrial Retail<strong>in</strong>g Technological<br />

20th Edition<br />

TMS Optimization Rout<strong>in</strong>es:<br />

End-to-end Match<strong>in</strong>g/Cont<strong>in</strong>uous Moves<br />

Mode Conversion/Optimization<br />

Many to Many <strong>Supply</strong> Network Optimization<br />

Integrated TMS & WMS Internet Customer Access Real-time Track & Trace<br />

Internet Order Fulfillment Radio Frequency Devices XML Data H<strong>and</strong>l<strong>in</strong>g<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

Page 462 of 768


TRANSPORTATION MANAGEMENT SERVICES<br />

Transportation Plann<strong>in</strong>g Transportation Execution Transportation Services<br />

Carrier Mgmt <strong>and</strong> Contract<strong>in</strong>g<br />

Inbound Shipment Plann<strong>in</strong>g<br />

Outbound Shipment Plann<strong>in</strong>g<br />

End-to-end Load Match<strong>in</strong>g<br />

Mode Conversion/Optimization<br />

CUSTOMERS<br />

Contract File Ma<strong>in</strong>tenance<br />

Exception H<strong>and</strong>l<strong>in</strong>g<br />

Load Tender<strong>in</strong>g<br />

Loss/Damage Claims<br />

Track<strong>in</strong>g & Trac<strong>in</strong>g<br />

WAREHOUSING & VALUE-ADDED SERVICES<br />

Warehouse/Distribution Center<br />

Facilities Mgmt Frozen Refrigerated Rail Sid<strong>in</strong>g<br />

Freight Bill Payment:<br />

Pre-Audit<br />

Post-Audit<br />

Performed In-house<br />

Outsourced<br />

Value-Added Services<br />

Call Centers<br />

Kitt<strong>in</strong>g<br />

Pick/Pack<br />

Cross Dock<strong>in</strong>g Label<strong>in</strong><br />

Pool Distribution<br />

Customization<br />

Lot Control<br />

Repair/Refurbish<br />

Inventory Control/Vendor Mgmt Merge <strong>in</strong> Transit<br />

Returnable Conta<strong>in</strong>er Mgmt<br />

KanBan<br />

Manufactur<strong>in</strong>g Support Reverse <strong>Logistics</strong><br />

OTHER 3PL SERVICES, SKILLS & HANDLING<br />

Other 3PL Services<br />

Consult<strong>in</strong>g/Process Reeng<strong>in</strong>eer<strong>in</strong>g<br />

Factor<strong>in</strong>g/F<strong>in</strong>ancial Services<br />

Special Skills & Material H<strong>and</strong>l<strong>in</strong>g<br />

Bulk Commodities<br />

Installation/Removal<br />

Purchase Order Mgmt<br />

Air Freight Forward<strong>in</strong>g<br />

Consolidation/Deconsolidation<br />

Dedicated Contract Carriage<br />

Freight Brokerage<br />

Home Delivery<br />

Less than Truckload (LTL)<br />

Ocean Freight Forward<strong>in</strong>g<br />

Store Support/Direct Store Delivery<br />

Sequenc<strong>in</strong>g/Meter<strong>in</strong>g<br />

Specialty Packag<strong>in</strong>g<br />

Sub Assembly<br />

Quality Control<br />

Order Mgmt Project <strong>Logistics</strong> Union Services<br />

Hazardous Materials Food Grade/Sterile Temperature Controlled<br />

ISO Certified Certification Locations: Select locations worldwide.<br />

Other Services:<br />

INTERNATIONAL SERVICES & PRIMARY AREAS SERVED<br />

International Services Areas Served<br />

AES/AMS/C-TPAT Duty Drawback<br />

LCL Consolidation<br />

Customs Brokerage<br />

Foreign Trade Zone<br />

NVOCC<br />

Export Crat<strong>in</strong>g Port Services<br />

A sample of 3PL clients.<br />

Customer<br />

Africa/Middle East<br />

Asia/Pacific<br />

Australia/New Zeal<strong>and</strong><br />

Europe<br />

Lat<strong>in</strong>/South America<br />

North America<br />

Rail<br />

Rail TOFC/COFC<br />

Small Package<br />

Specialized<br />

Truckload (TL)<br />

TM-Transportation Mgmt WM-Whse/DC Mgmt VA-Value-Added DCC-Dedicated Contract Carriage<br />

Inte-Integrated TM&WM IM-Intermodal Intl-International SCM-<strong>Supply</strong> Cha<strong>in</strong> Network Mgmt. Lead-Lead 3PL<br />

Services Rendered by Menlo<br />

Industry Location TM WM VA DCC Inte IM Intl SCM Lead Other<br />

3Com Computers, Office Equipment Santa Clara, CA, Netherla<br />

A.O. Smith Electronics, Electrical Equipment US<br />

Allison Transmission Motor Vehicles & Parts Ch<strong>in</strong>a<br />

B&Q Specialty Retailers Ch<strong>in</strong>a<br />

Bacardi Beverages Asia<br />

Bayer MaterialScience Chemicals US<br />

Beefeater G<strong>in</strong> Beverages S<strong>in</strong>gapore<br />

Big C General Merch<strong>and</strong>isers Thail<strong>and</strong><br />

Blue Coat Systems Network, Communications Equipment Netherl<strong>and</strong>s<br />

BMW Motor Vehicles & Parts Asia<br />

Bobcat Construction & Farm Mach<strong>in</strong>ery Ch<strong>in</strong>a, Netherl<strong>and</strong>s, US<br />

Braun GmbH Household & Personal Products Ch<strong>in</strong>a<br />

20th Edition<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

Page 463 of 768


COUNTRIES with OFFICES Countries served through owned offices or exclusive agents<br />

Menlo<br />

Africa/Middle East Asia/Pacific Australia/New Zeal<strong>and</strong> Europe North America Lat<strong>in</strong>/South America<br />

Ch<strong>in</strong>a<br />

Australia<br />

Belgium<br />

Canada<br />

Brazil<br />

Hong Kong<br />

Czech Republic Mexico<br />

Chile<br />

India<br />

Germany<br />

United States<br />

Malaysia<br />

Great Brita<strong>in</strong><br />

S<strong>in</strong>gapore<br />

Hungary<br />

Taiwan<br />

Thail<strong>and</strong><br />

Irel<strong>and</strong><br />

Netherl<strong>and</strong>s<br />

EDITOR'S COMMENTS<br />

Menlo Worldwide <strong>Logistics</strong> is one of the lead<strong>in</strong>g U.S.-based 3PLs. It has adapted a Lean Six Sigma<br />

management approach that is hav<strong>in</strong>g positive results both on its profitability <strong>and</strong> <strong>in</strong> develop<strong>in</strong>g new bus<strong>in</strong>ess.<br />

Menlo has solid <strong>in</strong>bound supply cha<strong>in</strong> management <strong>and</strong> f<strong>in</strong>ished goods distribution capabilities. It is a prime<br />

contractor for the U.S. Transportation Comm<strong>and</strong>’s Defense Transportation Coord<strong>in</strong>ation Initiative <strong>and</strong> the lead<br />

logistics provider for truck manufacturer Navistar. Menlo is also a key 3PL for HP, Caterpillar, GM, Sears <strong>and</strong> Dow.<br />

Menlo has significantly grown its Ch<strong>in</strong>a <strong>and</strong> Southeast Asia network <strong>and</strong> is cont<strong>in</strong>u<strong>in</strong>g to exp<strong>and</strong> its European<br />

operations. Both are add<strong>in</strong>g significant pieces of bus<strong>in</strong>ess with retailers such as Triumph <strong>in</strong> the U.K. <strong>and</strong> Malaysia<br />

<strong>and</strong> Puma <strong>in</strong> S<strong>in</strong>gapore. In Southeast Asia, Menlo runs 27 value-added warehous<strong>in</strong>g operations with 3.5 million<br />

square feet of space <strong>and</strong> a workforce of 1,175.<br />

Menlo's IT capabilities, <strong>in</strong>clud<strong>in</strong>g its recent addition of Oracle-TM’s transportation management system, provide<br />

it with solid supply cha<strong>in</strong> management <strong>and</strong> optimization capabilities.<br />

Provider's Strengths<br />

Comb<strong>in</strong>ed <strong>and</strong> <strong>in</strong>tegrated supply cha<strong>in</strong> management, 4PL/lead logistics provider capabilities, significant Asia<br />

Pacific presence <strong>and</strong> exp<strong>and</strong><strong>in</strong>g global footpr<strong>in</strong>t.<br />

Provider's Weaknesses<br />

CASES & NEWS<br />

Menlo Ref<strong>in</strong>es its Ch<strong>in</strong>a 3PL Model <strong>and</strong> Ga<strong>in</strong>s Bus<strong>in</strong>ess [To view <strong>in</strong> full html format, follow this l<strong>in</strong>k: http://www.3plogistics.com/Menlo_2-<br />

2012.htm]<br />

Shanghai, Ch<strong>in</strong>a Site Visit<br />

February 20, 2012<br />

Key Personnel:<br />

Bob Bassett, Vice President of Sales <strong>and</strong> Market<strong>in</strong>g<br />

Leong Choong Cheng, Senior Director of Bus<strong>in</strong>ess Development, North Asia<br />

Jack Wu, Operations Manager<br />

Steven Chen, Manager of Quality, Allison Transmission Asia Pacific Operations<br />

Menlo Ch<strong>in</strong>a Overview<br />

Menlo Worldwide <strong>Logistics</strong> generated gross revenue of $1.5 billion <strong>and</strong> net revenue of $572 million <strong>in</strong> 2010. It is on track to grow by over<br />

6% <strong>in</strong> 2011 driv<strong>in</strong>g its gross revenue to approximately $1.6 billion. Menlo’s global staff of approximately 6,500 manages operations <strong>in</strong> 20<br />

countries on five cont<strong>in</strong>ents. Menlo’s exp<strong>and</strong><strong>in</strong>g operational footpr<strong>in</strong>t has moved it <strong>in</strong>to a select group of third-party logistics providers (3PLs)<br />

which we classify as tier-one major market 3PLs. Globally, HP is Menlo’s top customer, followed by Navistar, <strong>and</strong> the DTCI (Defense<br />

Transportation Coord<strong>in</strong>ation Initiative). It was also awarded a significant contract from GM to manage GM’s global spare parts <strong>and</strong> aftermarket<br />

accessories logistics operations <strong>in</strong> late 2011.<br />

We recently had the opportunity to get updated on Menlo’s Ch<strong>in</strong>ese operations dur<strong>in</strong>g a visit to Shanghai. Menlo has over 47 years of<br />

experience <strong>in</strong> Ch<strong>in</strong>a. In 1962, it established a Hong Kong office <strong>and</strong> <strong>in</strong> 1999 Menlo established a wholly-owned subsidiary, Shanghai-Menlo<br />

Worldwide <strong>Logistics</strong> (Shanghai) Company Ltd., <strong>in</strong> the Waigaoqiao (WGQ) Free Trade Zone (FTZ). In 2006, Menlo formed a wholly-owned<br />

foreign enterprise (WOFE) allow<strong>in</strong>g it to provide domestic warehous<strong>in</strong>g <strong>and</strong> transportation services. In 2007, Menlo greatly exp<strong>and</strong>ed its<br />

domestic ma<strong>in</strong>l<strong>and</strong> Ch<strong>in</strong>a supply cha<strong>in</strong> management network through the acquisition of Shanghai based Chic <strong>Logistics</strong>. Chic was a significant<br />

domestic Ch<strong>in</strong>ese provider of non-asset based transportation management <strong>and</strong> value-added warehous<strong>in</strong>g services. In 2009, Menlo rebr<strong>and</strong>ed the<br />

Menlo/Chic Ch<strong>in</strong>a operations as Menlo Worldwide <strong>Logistics</strong>, North Asia.<br />

Today, Menlo North Asia is operated by a staff of 1,000. Accord<strong>in</strong>g to Menlo, it has ref<strong>in</strong>ed its Ch<strong>in</strong>a 3PL model <strong>and</strong> market<strong>in</strong>g efforts to<br />

focus less on compet<strong>in</strong>g with local Ch<strong>in</strong>ese 3PLs for tactical logistics bus<strong>in</strong>ess <strong>and</strong> is concentrat<strong>in</strong>g on work<strong>in</strong>g strategically with domestic <strong>and</strong><br />

mult<strong>in</strong>ational companies need<strong>in</strong>g more complex logistics solutions. It has been us<strong>in</strong>g Menlo’s consult<strong>in</strong>g services such as distribution network<br />

model<strong>in</strong>g as an entrée to develop<strong>in</strong>g new 3PL bus<strong>in</strong>ess. Key Menlo Ch<strong>in</strong>a accounts <strong>in</strong>clude: B&Q, Eaton, GM, Mary Kay, New Era, P&G,<br />

Powerwave, Shanxi Cok<strong>in</strong>g Group, <strong>and</strong> Unilever.<br />

Menlo is a lead logistics provider (LLP) for Mary Kay <strong>in</strong> Ch<strong>in</strong>a manag<strong>in</strong>g the transportation, value-added warehous<strong>in</strong>g, <strong>and</strong> sales counter<br />

operations for Mary Kay’s domestic manufactur<strong>in</strong>g to direct sales channel. Menlo is also work<strong>in</strong>g with Eaton <strong>in</strong> North Ch<strong>in</strong>a perform<strong>in</strong>g valueadded<br />

warehous<strong>in</strong>g <strong>and</strong> distribution services for Eaton’s un<strong>in</strong>terrupted power supply products. It is also work<strong>in</strong>g with Shanxi Cok<strong>in</strong>g Group<br />

manag<strong>in</strong>g coal transportation <strong>in</strong> Shanxi Prov<strong>in</strong>ce <strong>in</strong> Western Ch<strong>in</strong>a. Powerwave is a global Menlo customer. In Ch<strong>in</strong>a, Menlo is manag<strong>in</strong>g<br />

Powerwave's warehous<strong>in</strong>g <strong>and</strong> domestic f<strong>in</strong>ished goods distribution.<br />

For future growth, Menlo Ch<strong>in</strong>a is target<strong>in</strong>g customers <strong>in</strong> the follow<strong>in</strong>g vertical <strong>in</strong>dustries <strong>and</strong> channels:<br />

20th Edition<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

Page 464 of 768


⦁ Volume/Network Segments: FMCG, Chemical & Industrial<br />

⦁ High Value/Growth Segments: High Tech, Automotive Parts, Factory <strong>Logistics</strong> <strong>and</strong> 4PL/LLP & <strong>Supply</strong> Cha<strong>in</strong> consultancy<br />

⦁ Direct Sales/Onl<strong>in</strong>e Retail<br />

⦁ Bonded/Regional Hub<br />

⦁ Energy <strong>Logistics</strong><br />

Menlo recently ga<strong>in</strong>ed several significant pieces of bus<strong>in</strong>ess <strong>in</strong> Ch<strong>in</strong>a <strong>in</strong>clud<strong>in</strong>g apparel <strong>and</strong> accessories distributor New Era. New Era has a<br />

contract with the United States based Major League Baseball <strong>and</strong> National Football Leagues to merch<strong>and</strong>ise <strong>and</strong> distribute apparel <strong>and</strong> accessory<br />

items. New Era, <strong>in</strong> turn, contracted with Menlo to manage its domestic Ch<strong>in</strong>a value-added warehous<strong>in</strong>g <strong>and</strong> distribution needs <strong>in</strong>clud<strong>in</strong>g returns<br />

process<strong>in</strong>g. Menlo’s New Era operation is be<strong>in</strong>g managed centrally from its Hong Kong logistics hub.<br />

Menlo Ch<strong>in</strong>a’s primarily non-asset based transportation management operation – with a moderate size fleet of over 60 self-owned trucks – is<br />

manag<strong>in</strong>g approximately 90,000 shipments per month us<strong>in</strong>g a regionalized hub <strong>and</strong> spoke network <strong>and</strong> utilizes over 1,200 trucks ma<strong>in</strong>ly from<br />

carrier partners on a daily basis for its transportation operation throughout Ch<strong>in</strong>a. The transport network has a centralized management <strong>and</strong><br />

operations office <strong>in</strong> Shanghai with regional branches <strong>in</strong> Guangzhou, Beij<strong>in</strong>g-Tianj<strong>in</strong>, Chengdu, Xian, <strong>and</strong> Wuhan. It is coord<strong>in</strong>at<strong>in</strong>g pickup <strong>and</strong><br />

delivery services <strong>in</strong> over 110 major cities <strong>and</strong> is h<strong>and</strong>l<strong>in</strong>g over 1 million metric tons annually.<br />

Menlo’s transportation management services <strong>in</strong>clude: local distribution, long haul truckload <strong>and</strong> less than truckload shipment management,<br />

licensed Dangerous Goods transportation, <strong>and</strong> multimodal domestic freight forward<strong>in</strong>g us<strong>in</strong>g truck, air, rail, sea <strong>and</strong> barge transportation modes.<br />

Ma<strong>in</strong> ground transport lanes <strong>in</strong>clude po<strong>in</strong>ts to <strong>and</strong> from Shanghai, Guangzhou, <strong>and</strong> Beij<strong>in</strong>g-Tianj<strong>in</strong>. Major one-way lanes <strong>in</strong>clude po<strong>in</strong>ts from<br />

Shanghai, Guangzhou, Beij<strong>in</strong>g-Tianj<strong>in</strong> to Xian, Chengdu, Wuhan, Shenyang, <strong>and</strong> from Xian to Urumqi.<br />

Ch<strong>in</strong>a’s central government recently changed its VAT (value-added tax) structure to encourage Ch<strong>in</strong>ese 3PLs to own assets. Menlo currently<br />

owns 60 trucks as part of its Ch<strong>in</strong>ese operation <strong>and</strong> is perform<strong>in</strong>g an analysis to determ<strong>in</strong>e if it should further exp<strong>and</strong> its own fleet. All of<br />

Menlo’s trucks have onboard GPS track<strong>in</strong>g <strong>and</strong> trac<strong>in</strong>g units <strong>in</strong>stalled for shipment visibility, which is a service differentiator <strong>in</strong> Ch<strong>in</strong>a.<br />

Menlo’s Ch<strong>in</strong>a warehouse network boasts over 180,600 square meters of total space. In total, it has 19 distribution centers, three bonded<br />

warehous<strong>in</strong>g operations, 45 field stock<strong>in</strong>g locations, <strong>and</strong> fulfills over 20,000 orders per day. Its forward stock<strong>in</strong>g locations ma<strong>in</strong>ly support Mary<br />

Kay <strong>and</strong> are also utilized by some onl<strong>in</strong>e bus<strong>in</strong>esses. It is also runn<strong>in</strong>g dedicated warehous<strong>in</strong>g operations for multiple customers.<br />

Core warehous<strong>in</strong>g services provided <strong>in</strong> Ch<strong>in</strong>a <strong>in</strong>clude: bonded <strong>and</strong> non-bonded FTZ warehous<strong>in</strong>g <strong>and</strong> distribution, <strong>in</strong>ventory management,<br />

customs fil<strong>in</strong>g <strong>and</strong> process<strong>in</strong>g, cross-dock<strong>in</strong>g, vendor managed <strong>in</strong>ventory programs, returns process<strong>in</strong>g, <strong>and</strong> spare/service parts logistics<br />

management. In addition, Menlo is provid<strong>in</strong>g customers with numerous value-added services <strong>in</strong>clud<strong>in</strong>g: kitt<strong>in</strong>g, bar-cod<strong>in</strong>g, label<strong>in</strong>g,<br />

packag<strong>in</strong>g/repack<strong>in</strong>g, pick/pack, repair/refurbishment, <strong>and</strong> scrap/salvage management.<br />

Menlo is perpetuat<strong>in</strong>g a “Lean” operat<strong>in</strong>g management culture globally <strong>and</strong> currently three facilities <strong>in</strong> Ch<strong>in</strong>a are Bronze certified. Menlo’s<br />

Lean warehous<strong>in</strong>g certification is based upon measured operat<strong>in</strong>g performance versus goals <strong>and</strong> the success of process reeng<strong>in</strong>eer<strong>in</strong>g Kaizen<br />

(process improvement) events. The certification levels range from Bronze to Gold. Thomas Pan is lead<strong>in</strong>g the Lean tra<strong>in</strong><strong>in</strong>g <strong>and</strong> management<br />

effort <strong>in</strong> Ch<strong>in</strong>a. In addition, he is also oversee<strong>in</strong>g Menlo’s ongo<strong>in</strong>g ISO 9002 quality certification process.<br />

Menlo Ch<strong>in</strong>a Waigaoqiao (WGQ) Free Trade Zone (FTZ) Operations<br />

As part of our visit, we toured three warehouses <strong>in</strong> the WGQ FTZ which serves as Menlo’s bonded/regional hub <strong>in</strong> Shanghai. The first<br />

warehouse was GM’s bonded operation, the next was for Allison Transmission, <strong>and</strong> the third was a multi-client warehous<strong>in</strong>g operation. An<br />

overview of each is provided below.<br />

GM Bonded Service Parts <strong>Logistics</strong> (SPL) Operation<br />

The GM bonded service parts value-added warehous<strong>in</strong>g <strong>and</strong> distribution operations began <strong>in</strong> 1999. Menlo processes customs registrations,<br />

returns, <strong>and</strong> performs domestic service parts distribution of imported parts from the 4,000 square meter facility. The operation is currently<br />

staffed by 16 people.<br />

A staff of four work <strong>in</strong> the office process<strong>in</strong>g customs fil<strong>in</strong>gs <strong>and</strong> dealer orders. The rema<strong>in</strong>der work <strong>in</strong> the warehouse. The operation is<br />

managed by Jack Wu.<br />

General Motors Shanghai has a manufactur<strong>in</strong>g plant <strong>in</strong> Pudong which utilizes SAP's ERP (enterprise resource plann<strong>in</strong>g) system for order<br />

management. Orders “drop” from the SAP system driv<strong>in</strong>g pick<strong>in</strong>g with<strong>in</strong> the Menlo GM warehouse. Over 8,000 SKUs (stock keep<strong>in</strong>g units) of<br />

parts are ma<strong>in</strong>ta<strong>in</strong>ed <strong>in</strong> on-h<strong>and</strong> <strong>in</strong>ventory <strong>and</strong> outbound fulfillment <strong>and</strong> distribution totals 5,000 order l<strong>in</strong>es per month dest<strong>in</strong>ed to<br />

approximately 90 GM dealers <strong>and</strong> hundreds of service stations.<br />

Menlo is also manag<strong>in</strong>g a non-bonded warehous<strong>in</strong>g operation for GM <strong>in</strong> Jiad<strong>in</strong>g, Shanghai. Over time, more <strong>and</strong> more parts are be<strong>in</strong>g<br />

manufactured <strong>in</strong> Ch<strong>in</strong>a <strong>and</strong> distributed to dealers <strong>and</strong> other customers with<strong>in</strong> Ch<strong>in</strong>a; therefore, the parts can be distributed from a non-bonded<br />

warehouse.<br />

Allison Transmission Bonded SPL <strong>and</strong> Manufactur<strong>in</strong>g Support Operation<br />

Allison Transmission has been utiliz<strong>in</strong>g Menlo's services for warehouse management <strong>and</strong> manufactur<strong>in</strong>g support s<strong>in</strong>ce 2008. The WGQ<br />

facility has a staff of 12 people manag<strong>in</strong>g the bonded warehouse light-truck transmission <strong>and</strong> spare parts logistics manufactur<strong>in</strong>g support<br />

operation.<br />

Parts are primarily imported from Allison Transmission's manufactur<strong>in</strong>g plant <strong>in</strong> Indianapolis. Export parts <strong>and</strong> transmissions are primarily<br />

shipped to Korea, Japan, Indonesia, <strong>and</strong> S<strong>in</strong>gapore. A grow<strong>in</strong>g number, however, are also be<strong>in</strong>g distributed for use with<strong>in</strong> Ch<strong>in</strong>a.<br />

Six people work <strong>in</strong> the office process<strong>in</strong>g <strong>in</strong>bound <strong>and</strong> outbound customs declaration registrations <strong>and</strong> perform<strong>in</strong>g order process<strong>in</strong>g. For<br />

2011, monthly import shipment customs registrations ranged from 22 to 48 <strong>and</strong> export customs registrations ranged from 67 to 106. Menlo was<br />

fulfill<strong>in</strong>g approximately 300 to 1,100 order l<strong>in</strong>es of parts <strong>and</strong> transmissions per month.<br />

Six warehouse workers perform parts <strong>in</strong>ventory management, pick/pack, distribution, <strong>and</strong> multiple value-added services. The value-added<br />

services be<strong>in</strong>g performed <strong>in</strong>clude: transmission component subassembly, transmission systems programm<strong>in</strong>g, parts calibration <strong>and</strong> test<strong>in</strong>g, <strong>and</strong><br />

parts kitt<strong>in</strong>g.<br />

The operation has multiple key performance <strong>in</strong>dicators (KPIs) <strong>in</strong>clud<strong>in</strong>g: pick & pack accuracy, pick & pack turnaround time, import <strong>and</strong><br />

export customs registration lead time, <strong>and</strong> order turnaround time. At the time of our visit, Menlo was perform<strong>in</strong>g above its target thresholds <strong>in</strong><br />

all of the KPI metrics.<br />

WGQ Multi-Client Warehouse<br />

20th Edition<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

Page 465 of 768


In another WGQ facility nearby, Menlo is runn<strong>in</strong>g a 3,500 square meter multi-client warehouse. Its customers <strong>in</strong>clude survey equipment<br />

manufacturer Trimble, coat<strong>in</strong>g/chemicals manufacturer PolyOne, Peter Thomas Roth sk<strong>in</strong> care products, <strong>and</strong> a network server high-tech<br />

customer. The operation has a staff of 10 <strong>and</strong> recently received Menlo's Bronze Lean certification.<br />

Overall, the operation is fairly basic with multiple racks <strong>and</strong> bulk storage areas. In addition to case <strong>and</strong> pallet storage <strong>and</strong> distribution, some<br />

special project work is be<strong>in</strong>g performed. Dur<strong>in</strong>g our visit, a Menlo team was apply<strong>in</strong>g local market labels to tubes of Peter Thomas Roth sk<strong>in</strong><br />

firm<strong>in</strong>g lotions.<br />

Menlo Ch<strong>in</strong>a Operations Summary<br />

With exp<strong>and</strong><strong>in</strong>g Asian, European, <strong>and</strong> North American operations, Menlo has advanced to be<strong>in</strong>g a true tier-one major market supply cha<strong>in</strong><br />

manager. While its Ch<strong>in</strong>a operations vary from advanced, such as Allison Transmission <strong>and</strong> Mary Kay, to fairly basic, as <strong>in</strong> the WGQ multiclient<br />

facility, each operation has a set of st<strong>and</strong>ardized work processes, customer performance metrics, <strong>and</strong> process improvement objectives.<br />

With its Lean management focus, Menlo has been able to attract significant new bus<strong>in</strong>ess from customers with average to complex supply cha<strong>in</strong><br />

management needs. With its ref<strong>in</strong>ed Ch<strong>in</strong>a 3PL model <strong>and</strong> market<strong>in</strong>g efforts, Menlo has built a solid foot<strong>in</strong>g for future growth with<strong>in</strong> Ch<strong>in</strong>a.<br />

Menlo Exp<strong>and</strong>s its Southeast Asia Network, Lean <strong>Management</strong> Culture <strong>and</strong> Correspond<strong>in</strong>g Capabilities [To view <strong>in</strong> full html format, follow<br />

this l<strong>in</strong>k: http://www.3plogistics.com/Menlo_Asia_7-2011.htm]<br />

Thail<strong>and</strong>, Malaysia, <strong>and</strong> S<strong>in</strong>gapore Site Visits<br />

July 26, 2011<br />

Key Personnel:<br />

Bob Bassett, Vice President of Sales <strong>and</strong> Market<strong>in</strong>g<br />

Tom Night<strong>in</strong>gale, Vice President of Communications <strong>and</strong> Chief Market<strong>in</strong>g Officer, Con-way, Inc.<br />

Desmond Chan, Manag<strong>in</strong>g Director – South Asia<br />

Thomas Koh, Director, Bus<strong>in</strong>ess Development – South Asia<br />

Naeramit Panpromm<strong>in</strong>, Country Manager – Thail<strong>and</strong><br />

Chew Kim Beng, Deputy General Manager – S<strong>in</strong>gapore Operations<br />

Resham S<strong>in</strong>gh Rajput A/L Balgit S<strong>in</strong>gh, Operations Manager – Malaysia<br />

Menlo Southeast Asia Overview<br />

Menlo has exp<strong>and</strong>ed its Southeast Asian operations dramatically s<strong>in</strong>ce our last visit <strong>in</strong> 2007. Today it is runn<strong>in</strong>g 27 value-added warehous<strong>in</strong>g<br />

operations with a total footpr<strong>in</strong>t of 3.5 million square feet <strong>and</strong> has a workforce of 1,175. In addition to warehous<strong>in</strong>g services, Menlo has added<br />

significant pieces of bus<strong>in</strong>ess <strong>in</strong>creas<strong>in</strong>g its regional transportation management capabilities. Although most of Menlo’s <strong>in</strong>itial Southeast Asia<br />

bus<strong>in</strong>ess centered on meet<strong>in</strong>g the needs of its mult<strong>in</strong>ational automotive <strong>and</strong> high-tech <strong>in</strong>dustry customers, Menlo has added many mult<strong>in</strong>ational<br />

<strong>and</strong> regional distribution customers <strong>in</strong> apparel, consumer packaged goods <strong>and</strong> retail. Menlo’s major South Asia customers <strong>in</strong>clude BMW, GM,<br />

Nike, Philips, Puma, Robert Bosch, Trane, Pernod Ricard, Bacardi, APB, Embraer, Net Appliance, Danfoss, Tata Automotive <strong>and</strong> Triumph.<br />

While the traditional drivers of logistics outsourc<strong>in</strong>g--manufacturers focus<strong>in</strong>g on core competencies, leverag<strong>in</strong>g third-party logistics providers<br />

(3PLs) for cost reductions, <strong>and</strong> improv<strong>in</strong>g operational efficiencies--are <strong>in</strong> play <strong>in</strong> Southeast Asia, 3PLs such as Menlo are <strong>in</strong>creas<strong>in</strong>gly becom<strong>in</strong>g<br />

key allies <strong>in</strong> customers’ labor cost management strategies. In markets such as Bangkok, Thail<strong>and</strong> where unemployment is very low <strong>and</strong> labor<br />

costs are <strong>in</strong>creas<strong>in</strong>g above 10% per year, 3PLs provide companies with <strong>in</strong>creased predictability when budget<strong>in</strong>g for logistics costs.<br />

Menlo South Asia Operat<strong>in</strong>g Network:<br />

India: 11 Warehouses, 1,280,000 Sq. Ft., 425 Employees<br />

Thail<strong>and</strong>: 3 Warehouses, 121,000 Sq. Ft., 90 Employees<br />

Malaysia: 6 Warehouses, 360,000 Sq. Ft., 210 Employees<br />

S<strong>in</strong>gapore: 7 Warehouses, 1,700,000 Sq. Ft., 450 Employees<br />

Total: 27 Warehouses, 3,461,000 Sq. Ft., 1,175 Employees<br />

Bangna-Trad Road Multi-Client Value-Added Warehous<strong>in</strong>g & Distribution Operation<br />

The first operation we toured on our Southeast Asian trek was a modern 86,000 square foot multi-client warehouse on the outskirts of<br />

Bangkok, Thail<strong>and</strong>. The facility has a staff of 80 provid<strong>in</strong>g services to five major customers. As a result of its ongo<strong>in</strong>g process improvements,<br />

the operation received Menlo’s Bronze Lean <strong>Management</strong> Certification <strong>in</strong> November 2009. To manage operations, Menlo utilizes its proprietary<br />

“SIMS” WMS (warehouse management system) for almost all of the facility’s customers.<br />

The facility provides warehous<strong>in</strong>g <strong>and</strong> distribution services to local markets <strong>in</strong>clud<strong>in</strong>g retailers <strong>and</strong> hypermarkets such as Big C, Carrefour,<br />

<strong>and</strong> Tesco. The average monthly volume of products shipped is over 6,000 cubic meters.<br />

In addition to outbound order fulfillment, Menlo performs <strong>in</strong>bound product receiv<strong>in</strong>g <strong>and</strong> <strong>in</strong>spection, label<strong>in</strong>g, product bundl<strong>in</strong>g <strong>and</strong> returns<br />

management for its customers.<br />

Menlo Thail<strong>and</strong> started with its first customer at this facility <strong>in</strong> 2007 with a 50,000 square feet footpr<strong>in</strong>t <strong>and</strong> has exp<strong>and</strong>ed to three sites with<br />

150,000 square feet over the last three years.<br />

For a number of its automotive customers, Menlo manages service parts <strong>in</strong>ventory <strong>and</strong> coord<strong>in</strong>ates the distribution of parts to dealers <strong>and</strong><br />

vehicle service centers throughout Thail<strong>and</strong>, Cambodia, Vietnam, <strong>and</strong> other Southeast Asia countries.<br />

Each of these customers is pick/pack <strong>in</strong>tensive <strong>and</strong> more than 500 daily outbound shipments are managed by Menlo. For shipments with<strong>in</strong> a<br />

1,000 kilometer radius of the warehouse, Menlo provides its customers with same-day, or next-day delivery.<br />

Over <strong>and</strong> above warehouse <strong>and</strong> transportation management, Menlo is also perform<strong>in</strong>g country specific product label<strong>in</strong>g for the Thai market,<br />

repack<strong>in</strong>g products as requested, <strong>and</strong> perform<strong>in</strong>g import label<strong>in</strong>g.<br />

Malaysia Tanjung Pelepas Distribution Center - Dedicated Service Parts <strong>Logistics</strong> Warehous<strong>in</strong>g & Distribution Operation<br />

20th Edition<br />

Just across the border from S<strong>in</strong>gapore <strong>in</strong> the Port of Tanjung Pelepas free trade zone <strong>in</strong> Malaysia, Menlo is runn<strong>in</strong>g a dedicated 150,000<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

Page 466 of 768


square foot service parts logistics warehous<strong>in</strong>g <strong>and</strong> distribution operation for an automotive customer. The operation started <strong>in</strong> August 2004.<br />

Menlo has a current staff of 45 responsible for fulfill<strong>in</strong>g spare parts <strong>and</strong> lifestyle item accessory orders to more than 80 auto dealers located <strong>in</strong> 21<br />

countries throughout Southeast Asia <strong>and</strong> Oceania.<br />

The warehouse stores multiple model years of automotive <strong>and</strong> accessory parts <strong>in</strong> more than 52,000 <strong>in</strong>ventory locations. The majority of<br />

larger parts are stored <strong>in</strong> rack locations <strong>and</strong> bulky items are stored on the floor. The warehouse has separate storage areas for dangerous goods<br />

<strong>and</strong> accessories. All parts are stored us<strong>in</strong>g an ABC <strong>in</strong>ventory management approach with faster mov<strong>in</strong>g parts positioned closest to the shipp<strong>in</strong>g<br />

dock. Small parts are stored <strong>in</strong> b<strong>in</strong>s <strong>and</strong> on shelves <strong>in</strong> a centrally located three-level mezzan<strong>in</strong>e.<br />

Warehouse tasks performed by Menlo <strong>in</strong>clude: <strong>in</strong>bound receiv<strong>in</strong>g, sort<strong>in</strong>g <strong>and</strong> putaway; storage <strong>and</strong> <strong>in</strong>ventory management; outbound<br />

pick<strong>in</strong>g, pack<strong>in</strong>g, <strong>and</strong> shipp<strong>in</strong>g; carrier dispatch <strong>and</strong> quality control.<br />

Inbound parts are received via ocean conta<strong>in</strong>er or as airfreight shipments. All <strong>in</strong>bound products are checked aga<strong>in</strong>st <strong>in</strong>voices to validate<br />

product types <strong>and</strong> quantities prior to putaway.<br />

To support operations, Menlo utilizes a robust system supported with RF scanners to manage tasks <strong>and</strong> provide real-time data updates<br />

throughout the operation. Daily cycle counts <strong>and</strong> an annual physical <strong>in</strong>ventory are performed to ensure <strong>in</strong>ventory accuracy.<br />

Menlo is measured on four ma<strong>in</strong> KPIs (key performance <strong>in</strong>dicators): claims errors (excess shortage, shipp<strong>in</strong>g error overage), <strong>in</strong>ventory<br />

accuracy, <strong>in</strong>bound lead time, <strong>and</strong> outbound lead time. It also tracks an additional seven KPIs for Menlo’s own <strong>in</strong>ternal quality measurement.<br />

Together they make up a “Balanced Scorecard” for the detailed measurement of operational performance. For 2011, Menlo is exceed<strong>in</strong>g its<br />

customer’s <strong>and</strong> five of its own performance goals <strong>in</strong> all of the scorecard areas.<br />

To support Menlo’s Lean <strong>Management</strong> objectives, Menlo has <strong>in</strong>itiated a series for Kaizen process improvement events. Events completed <strong>in</strong><br />

2009-11 which resulted <strong>in</strong> significant process improvement sav<strong>in</strong>gs <strong>in</strong>cluded the follow<strong>in</strong>g project titles:<br />

1. Conta<strong>in</strong>er Load<strong>in</strong>g for Dangerous Goods<br />

2. Reduce Conta<strong>in</strong>er Time at Yard & Warehouse<br />

3. Improve FIFO Parts Process<br />

4. Improve Pack<strong>in</strong>g Productivity for Fast Mov<strong>in</strong>g Bulky Parts<br />

5. Improved Pick<strong>in</strong>g Productivity with "Top 2000" Implementation<br />

Each of the four Menlo supervisors is responsible for support<strong>in</strong>g at least one Kaizen event per year. As a result of its Lean <strong>Management</strong><br />

<strong>in</strong>itiatives <strong>and</strong> the correspond<strong>in</strong>g operational improvements, this Menlo’s operation was awarded with a corporate Silver Certification <strong>in</strong><br />

November 2010. In addition, the client also awarded Menlo with its Gold Award <strong>in</strong> 2010.<br />

Boon Lay S<strong>in</strong>gapore Warehouse<br />

The last operation we visited is the largest of Menlo’s seven warehouses <strong>in</strong> S<strong>in</strong>gapore. The 284,000 square foot Boon Lay multi-client<br />

warehouse has both domestic distribution storage areas <strong>and</strong> bonded areas for export products. Just under half of the operation focuses on<br />

h<strong>and</strong>l<strong>in</strong>g imports <strong>and</strong> provid<strong>in</strong>g regional <strong>and</strong> local distribution for w<strong>in</strong>e <strong>and</strong> spirits customers. Each of the operations detailed below utilize<br />

Menlo’s SIMS WMS for warehouse management.<br />

The first operation we toured was a distribution hub for Menlo’s W<strong>in</strong>e & Spirits customers. It occupies approximately 180,000 square feet of<br />

the warehouse <strong>in</strong>clud<strong>in</strong>g five separate temperature <strong>and</strong> humidity controlled rooms. Some of the well known br<strong>and</strong>s stocked <strong>in</strong> this facility<br />

<strong>in</strong>clude Beefeater G<strong>in</strong>, Chivas Regal, Glenlivet, Malibu Rum, Jack Daniel's, Martell, <strong>and</strong> Johnnie Walker.<br />

Inbound conta<strong>in</strong>ers of product are received <strong>and</strong> checked aga<strong>in</strong>st orders to verify quantities. Next, they will be putaway <strong>in</strong>to the respective<br />

storage areas based on their storage requirements.<br />

Some of the value-added services <strong>in</strong>clude track<strong>in</strong>g of each case <strong>and</strong> bottle <strong>and</strong> label<strong>in</strong>g to meet the regulatory requirements of the f<strong>in</strong>al<br />

countries of distribution; these countries <strong>in</strong>clude Ch<strong>in</strong>a, Indonesia, S<strong>in</strong>gapore, <strong>and</strong> Vietnam.<br />

In November 2009, Menlo began its warehouse <strong>and</strong> local distribution operations for athletic shoe, apparel, <strong>and</strong> accessories manufacturer<br />

Puma. Menlo’s experience <strong>in</strong> retail logistics was key <strong>in</strong> l<strong>and</strong><strong>in</strong>g the Puma account.<br />

Services performed <strong>in</strong>clude <strong>in</strong>bound product receiv<strong>in</strong>g <strong>and</strong> quality/quantity <strong>in</strong>spections, premium product h<strong>and</strong>l<strong>in</strong>g, price tagg<strong>in</strong>g for<br />

domestic orders, <strong>and</strong> returns management. Menlo also supports Puma’s ad-hoc promotional events such as tradeshows <strong>and</strong> campaigns.<br />

Menlo is currently exceed<strong>in</strong>g its KPI performance benchmarks for Puma. They <strong>in</strong>clude: Web visibility to reflect real-time data of<br />

<strong>in</strong>bound/outbound orders <strong>and</strong> stock availability, over 99.9% on-time receiv<strong>in</strong>g performance, 100% order fulfillment, delivery <strong>and</strong> report<strong>in</strong>g<br />

performance; <strong>in</strong>ventory accuracy of 99.95%, <strong>and</strong> 99.99% data accuracy for system updates.<br />

As a result of Menlo’s performance <strong>in</strong> S<strong>in</strong>gapore, Puma awarded Menlo its Malaysian distribution bus<strong>in</strong>ess <strong>in</strong> March 2011.<br />

Menlo Southeast Asia Operations Summary<br />

Menlo has exp<strong>and</strong>ed extensively <strong>in</strong> Southeast Asia over the past three years. As it cont<strong>in</strong>ues to grow its automotive <strong>and</strong> high-tech customer<br />

base, it has progressively brought on more retail <strong>and</strong> consumer products local <strong>and</strong> regional value-added warehous<strong>in</strong>g <strong>and</strong> distribution bus<strong>in</strong>ess.<br />

Based upon its new bus<strong>in</strong>ess ga<strong>in</strong>s <strong>and</strong> solid new customer “pipel<strong>in</strong>e”, Menlo is add<strong>in</strong>g warehouse space <strong>and</strong> grow<strong>in</strong>g operations throughout<br />

Southeast Asia. It has solidified its management team <strong>and</strong> bus<strong>in</strong>ess approach. With Lean <strong>Management</strong> process improvement skills, Menlo has<br />

done well secur<strong>in</strong>g mult<strong>in</strong>ational <strong>and</strong> regional customers. From what we’ve seen, we predict that its successes will cont<strong>in</strong>ue.<br />

Menlo Worldwide <strong>Logistics</strong> Cont<strong>in</strong>ues its European Network Expansion [To view <strong>in</strong> full html format, follow this l<strong>in</strong>k:<br />

http://www.3plogistics.com/Menlo_9-2010.htm]<br />

Maastricht, Netherl<strong>and</strong>s <strong>and</strong> Gyal, Hungary Site Visits<br />

September 27, 2010<br />

Key Personnel:<br />

Bob Bassett, Vice President of Sales <strong>and</strong> Market<strong>in</strong>g<br />

Todd Johnson, Vice President of International Operations<br />

Tony Gunn, Manag<strong>in</strong>g Director Europe<br />

Arthur van Gerven, Sr. Director, Bus<strong>in</strong>ess Development, Key Account <strong>Management</strong> <strong>and</strong> 4PL Services<br />

Jori Liebr<strong>and</strong>, Site Manager – Maastricht<br />

Samantha Sawelberg, Lean Coord<strong>in</strong>ator – Maastricht<br />

Kornel Matos, <strong>Logistics</strong> Manager – Gyal<br />

20th Edition<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

Page 467 of 768


Menlo Worldwide <strong>Logistics</strong> Europe Overview<br />

Menlo Worldwide <strong>Logistics</strong> generated gross revenue of $1.3 billion <strong>and</strong> net revenue of $514 million <strong>in</strong> 2009. In addition, for the first two<br />

quarters of 2010 it has realized record profits <strong>and</strong> revenue ga<strong>in</strong>s. Menlo’s global staff of approximately 6,500 manages operations <strong>in</strong> 20 countries<br />

on five cont<strong>in</strong>ents. Menlo’s exp<strong>and</strong><strong>in</strong>g operational footpr<strong>in</strong>t has moved it <strong>in</strong>to a select group of third-party logistics providers (3PLs) which we<br />

classify as tier-one major market 3PLs.<br />

In Europe, Menlo has a staff of over 450 operat<strong>in</strong>g out of 15 locations <strong>in</strong> seven European countries. The 15 locations <strong>in</strong>clude value-added<br />

warehous<strong>in</strong>g <strong>and</strong> distribution operations <strong>in</strong>: Belgium, Czech Republic, Germany, Hungary, Irel<strong>and</strong>, Netherl<strong>and</strong>s, <strong>and</strong> United K<strong>in</strong>gdom. Menlo’s<br />

primary service offer<strong>in</strong>gs <strong>in</strong> Europe <strong>in</strong>clude both dedicated <strong>and</strong> multi-client warehous<strong>in</strong>g <strong>and</strong> multi-modal transportation management. Its total<br />

warehous<strong>in</strong>g footpr<strong>in</strong>t is just over 80,000 square meters (SQM). It also manages two transportation management rout<strong>in</strong>g centers; Eersel,<br />

Netherl<strong>and</strong>s <strong>and</strong> Gyal, Hungary. Menlo Europe’s transportation management services <strong>in</strong>clude pan-European ground truckload, less than<br />

truckload (LTL), airfreight, ocean <strong>and</strong> last mile delivery services. Besides these 3PL services, the Menlo European team also provides 4PL<br />

services to some global accounts. Its key European customers are <strong>in</strong> the high-tech, consumer, medical devices <strong>and</strong> <strong>in</strong>dustrial <strong>in</strong>dustries.<br />

In a recent visit, we had the opportunity to tour Menlo’s European operations <strong>in</strong> Maastricht, Netherl<strong>and</strong>s <strong>and</strong> a smaller warehous<strong>in</strong>g<br />

operation <strong>in</strong> Gyal, Hungary. These are detailed below.<br />

Maastricht Value-Added Warehous<strong>in</strong>g <strong>and</strong> Distribution Operations<br />

In December 2009, Menlo took over the management of a dedicated service parts warehous<strong>in</strong>g <strong>and</strong> distribution operation <strong>in</strong> Maastricht for a<br />

high-tech equipment manufacturer. Over 10,000 stock keep<strong>in</strong>g units (SKUs) of parts <strong>in</strong>ventory are ma<strong>in</strong>ta<strong>in</strong>ed by Menlo <strong>in</strong> the 19,300 square<br />

meter warehouse. With a staff of 65, it is provid<strong>in</strong>g the follow<strong>in</strong>g services: <strong>in</strong>bound materials receiv<strong>in</strong>g <strong>and</strong> process<strong>in</strong>g, parts <strong>in</strong>ventory<br />

management, parts repackag<strong>in</strong>g, outbound order fulfillment, <strong>and</strong> outbound transportation export documentation <strong>and</strong> rout<strong>in</strong>g adm<strong>in</strong>istration.<br />

The warehous<strong>in</strong>g facility itself is U-shaped, has 30 foot high ceil<strong>in</strong>gs, <strong>and</strong> is split <strong>in</strong>to 10 sections. Parts orders come <strong>in</strong> through the customer’s<br />

order management system <strong>in</strong>to warehouse management system (WMS) for pick<strong>in</strong>g us<strong>in</strong>g wireless scanners. The operation distributes parts<br />

orders to Europe, Russia, the Middle East, <strong>and</strong> Africa. All outbound orders processed by 6 P.M. are shipped the same day.<br />

As with all of the Menlo warehous<strong>in</strong>g operations we have toured, Lean management pr<strong>in</strong>ciples to drive out waste <strong>and</strong> improve operational<br />

efficiencies are be<strong>in</strong>g deployed <strong>in</strong> Maastricht. Menlo has transitioned the operation from its customer <strong>and</strong> implemented a new organizational<br />

structure. It is reeng<strong>in</strong>eer<strong>in</strong>g operations <strong>and</strong> has worked with the customer <strong>in</strong> significantly reduc<strong>in</strong>g on h<strong>and</strong> parts <strong>in</strong>ventory while ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g<br />

service levels. In its first six months of operation, Menlo was able to reduce the required warehouse <strong>in</strong>ventory space by just over 2,500 square<br />

meters <strong>and</strong> has an ultimate goal to reduce it by 5,800 square meters. The reduction <strong>in</strong> required warehous<strong>in</strong>g space yields a significant cost sav<strong>in</strong>gs<br />

to the customer <strong>and</strong> provides Menlo with space to add new accounts with<strong>in</strong> the operation <strong>and</strong> convert it from a dedicated to multi-client facility.<br />

Specific steps taken to transition the operation from the customer to Menlo management <strong>and</strong> implement Lean management pr<strong>in</strong>ciples have<br />

<strong>in</strong>cluded:<br />

• Menlo tak<strong>in</strong>g over the contract for the facility.<br />

• Development of a Menlo/customer Bus<strong>in</strong>ess Cont<strong>in</strong>gency Plan.<br />

• Started to <strong>in</strong>tegrate environmental, safety, <strong>and</strong> health programs.<br />

• Relationship management to grow the two cultures towards each other.<br />

• Integration of quality processes <strong>in</strong>to daily operations (outbound check, error file, empty location check, root cause analysis).<br />

• Conduct Lean/5S/Value Stream Mapp<strong>in</strong>g tra<strong>in</strong><strong>in</strong>g.<br />

• Performed a “Red-tag” campaign to identify unneeded equipment <strong>in</strong> work areas.<br />

• Started the first “5S walk” <strong>and</strong> created the first VSM (Value Stream Mapp<strong>in</strong>g) to map <strong>in</strong>bound process flows <strong>and</strong> reeng<strong>in</strong>eer the process.<br />

• Started implementation of work area “visuals”, for example: work area pictures, <strong>and</strong> pick cart organization pictures.<br />

• Implemented a “star card” program to reward employees for exceptional work performance.<br />

• The operation has started to perform <strong>and</strong> implement process improvements from Kaizen events.<br />

The Maastricht operation is on track to obta<strong>in</strong> Menlo’s Lean Bronze level by the end of 2010.<br />

Gyal Multi-Client Value-Added Warehous<strong>in</strong>g <strong>and</strong> Transportation <strong>Management</strong> Operations<br />

Menlo’s 3,500 square meter Gyal bonded warehouse is located just outside of Budapest, Hungary. Its value-added service offer<strong>in</strong>g <strong>in</strong>cludes:<br />

customs brokerage, packag<strong>in</strong>g, label<strong>in</strong>g, vendor managed <strong>in</strong>ventory programs, just-<strong>in</strong>-time production kitt<strong>in</strong>g <strong>and</strong> sequenc<strong>in</strong>g operations, <strong>and</strong><br />

regional <strong>and</strong> global transportation management. To support its warehous<strong>in</strong>g operations, Menlo is us<strong>in</strong>g its proprietary “SIMS” WMS <strong>and</strong> “LMS”<br />

transportation management system.<br />

The primary customer is a high-tech manufacturer <strong>in</strong> the f<strong>in</strong>ancial services <strong>in</strong>dustry <strong>and</strong> a Menlo global customer. Menlo manages the<br />

customer’s global f<strong>in</strong>ished goods distribution <strong>and</strong> runs its European transportation rout<strong>in</strong>g center onsite at the customer’s manufactur<strong>in</strong>g plant<br />

that is <strong>in</strong> the same <strong>in</strong>dustrial park as Menlo’s Gyal warehouse. The Gyal operation performs work for another four customers as well.<br />

Menlo’s European rout<strong>in</strong>g center management staff work h<strong>and</strong>-<strong>in</strong>-h<strong>and</strong> with the customer’s purchas<strong>in</strong>g personnel to manage <strong>in</strong>bound<br />

vendor material shipments to the plant. The majority of the customer’s materials are sourced from Asia, Europe, <strong>and</strong> the United States. In<br />

addition to the <strong>in</strong>bound freight, the rout<strong>in</strong>g center manages outbound ocean <strong>and</strong> air shipments dest<strong>in</strong>ed to the United States, South America,<br />

Middle East, <strong>and</strong> Africa. Menlo’s transportation management has provided the customer with significant double-digit transportation sav<strong>in</strong>gs <strong>in</strong><br />

each of its first three years of operation.<br />

In terms of adapt<strong>in</strong>g Menlo’s Lean operat<strong>in</strong>g philosophy, the Gyal operation completed its first Kaizen event <strong>in</strong> the first quarter of 2010 <strong>and</strong><br />

Menlo’s 5S processes have been implemented <strong>and</strong> managed <strong>in</strong> its warehouse. The operation is on track to obta<strong>in</strong> Menlo’s Lean Bronze level <strong>in</strong><br />

the third quarter of 2010.<br />

Summary<br />

In addition to its European <strong>and</strong> Americas operations, Menlo has developed a significant presence <strong>in</strong> ma<strong>in</strong>l<strong>and</strong> Ch<strong>in</strong>a, Asia Pacific <strong>and</strong> has<br />

develop<strong>in</strong>g operations <strong>in</strong> Australia. Its exp<strong>and</strong><strong>in</strong>g global footpr<strong>in</strong>t has allowed Menlo to advance to become a true tier-one major market supply<br />

cha<strong>in</strong> manager. Through its Lean management philosophy, Menlo has been able to attract significant new bus<strong>in</strong>ess, <strong>in</strong>crease its profitability <strong>and</strong><br />

reduce costs for its customers. Its Lean approach is mak<strong>in</strong>g Menlo especially attractive to high-tech <strong>and</strong> healthcare vertical <strong>in</strong>dustry customers.<br />

20th Edition<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

Page 468 of 768


In summary, Menlo is on the right track <strong>and</strong> we anticipate that it will cont<strong>in</strong>ue to grow globally <strong>and</strong> build upon its recent profit ga<strong>in</strong>s.<br />

Menlo Secure with TAPA Certification Confirmed Once More<br />

Amsterdam 18th July, 2012 - Menlo Worldwide <strong>Logistics</strong>’ (Menlo) European operation has completed a successful audit by the <strong>in</strong>ternational<br />

classification <strong>and</strong> certification bureau, Germanischer Lloyd, <strong>and</strong> has been awarded renewed certification as fulfill<strong>in</strong>g the Technology Asset<br />

Protection Association’s (TAPA) Freight Security Requirements (FSR).<br />

Menlo, the global logistics subsidiary of Con-way Inc. (NYSE: CNW), provides logistics, transport management <strong>and</strong> supply cha<strong>in</strong><br />

management services as well as an exp<strong>and</strong><strong>in</strong>g e-fulfillment offer<strong>in</strong>g across all five cont<strong>in</strong>ents. In Europe the company has n<strong>in</strong>e multi-client<br />

warehouse <strong>and</strong> distribution centers provid<strong>in</strong>g flexible, multi-functional supply cha<strong>in</strong> services.<br />

Tony Gunn, Menlo’s manag<strong>in</strong>g director, Europe, emphasized the importance of strict security protocols that have been <strong>in</strong>dependently<br />

audited <strong>and</strong> validated. “The <strong>in</strong>tegrity of our customers’ freight at all times is our top priority. The value of the TAPA audit process is that it<br />

ensures our policies <strong>and</strong> practices adhere to the highest st<strong>and</strong>ards. This is crucial to the overall reliability <strong>and</strong> peace of m<strong>in</strong>d our customers enjoy<br />

from our services.”<br />

The recent certification is the third time the security measures of Menlo’s European operations have been validated by this rigorous audit<br />

process, which is adm<strong>in</strong>istered by Germanischer Lloyd (GL) Systems Certification. The certification bureau’s personnel visited Menlo’s Eersel<br />

facility <strong>in</strong> the Netherl<strong>and</strong>s <strong>and</strong> carried out a further comb<strong>in</strong>ed TAPA FSR (A) <strong>and</strong> ISO 9001 audit at the Schiphol-Rijk location near Amsterdam.<br />

Rol<strong>and</strong> Brück, lead auditor <strong>and</strong> senior surveyor of GL Systems Certification said, “Menlo’s processes <strong>and</strong> specifications for secure supply<br />

cha<strong>in</strong> management have been verified. The company demonstrated its concern <strong>and</strong> commitment <strong>in</strong> servic<strong>in</strong>g customers’ security expectations.<br />

The security of the warehous<strong>in</strong>g <strong>and</strong> h<strong>and</strong>l<strong>in</strong>g operations has exceeded the requirements. Menlo Worldwide <strong>Logistics</strong> is a good example of how<br />

the implementation of quality control <strong>and</strong> benchmark<strong>in</strong>g has improved over all operations.”<br />

Added Jos Giele, the Amsterdam-based director of corporate security for parent company Con-way, who directed Menlo’s certification<br />

process <strong>and</strong> audit engagement with GL Systems Certification: “The successful audit results validate Menlo’s Europe operations as best-<strong>in</strong>-class<br />

with respect to security protocols <strong>and</strong> performance. It provides bus<strong>in</strong>ess advantage for our customers <strong>and</strong> clearly differentiates Menlo’s<br />

professionalism <strong>and</strong> process-driven approach to security <strong>and</strong> risk management as a valued asset.”<br />

Construction Ahead of Schedule on Menlo Worldwide <strong>Logistics</strong>' Advanced Green Distribution Center<br />

New Facility to Meet Str<strong>in</strong>gent St<strong>and</strong>ards as Certified Green Mark Gold Plus Build<strong>in</strong>g.<br />

SAN MATEO, Calif., <strong>and</strong> SINGAPORE - June 21, 2012 - Menlo Worldwide <strong>Logistics</strong>, the global logistics subsidiary of Con-way Inc.<br />

(NYSE: CNW), announced construction is ahead of schedule on its eighth S<strong>in</strong>gapore facility, a 400,000-square-foot build-to-suit warehous<strong>in</strong>g<br />

<strong>and</strong> retail distribution management center on Sunview Way. The new facility, which is be<strong>in</strong>g constructed to achieve the S<strong>in</strong>gapore Build<strong>in</strong>g <strong>and</strong><br />

Construction Authority’s (BCA) Green Mark Gold Plus certification, is expected to be completed this fall.<br />

The center will house <strong>in</strong>ventory <strong>and</strong> distribution operations for several current Menlo customers, while reta<strong>in</strong><strong>in</strong>g substantial capacity for new<br />

customers, noted Desmond Chan, manag<strong>in</strong>g director, South Asia for Menlo Worldwide <strong>Logistics</strong>. “We are gett<strong>in</strong>g a lot of <strong>in</strong>terest <strong>in</strong> this facility,<br />

which will be among the most environmentally friendly commercial logistics facilities <strong>in</strong> the region,” said Chan. “We welcome the <strong>in</strong>terest <strong>and</strong><br />

we encourage local bus<strong>in</strong>esses to consider this facility for high-efficiency warehous<strong>in</strong>g <strong>and</strong> distribution services.”<br />

To achieve the BCA’s Green Mark Gold Plus certification, the facility <strong>in</strong>corporates several advanced design <strong>and</strong> construction features<br />

emphasiz<strong>in</strong>g high levels of environmental susta<strong>in</strong>ability <strong>and</strong> energy <strong>and</strong> water resource conservation. These features <strong>in</strong>clude the use of green<br />

cement <strong>and</strong> recycled concrete aggregates (RCA) for concrete used <strong>in</strong> construct<strong>in</strong>g the ma<strong>in</strong> build<strong>in</strong>g elements, west-fac<strong>in</strong>g façade orientation,<br />

t<strong>in</strong>ted reflective glass w<strong>in</strong>dows <strong>and</strong> sun-shad<strong>in</strong>g provisions for <strong>in</strong>creased thermal efficiency. “Receiv<strong>in</strong>g the BCA Green Mark Gold Plus<br />

certification for our Sunview facility is an honor <strong>and</strong> a clear <strong>in</strong>dicator of our commitment to environmentally friendly facilities <strong>and</strong> practices,”<br />

Chan said.<br />

To further <strong>in</strong>crease energy conservation, the facility will be equipped with high-efficiency air-condition<strong>in</strong>g equipment, as well as advanced lifts<br />

designed with AC variable voltage <strong>and</strong> variable frequency motor drive <strong>and</strong> sleep mode features. High frequency ballasts <strong>in</strong> fluorescent<br />

lum<strong>in</strong>aries, such as Philips T5 Light<strong>in</strong>g, will provide efficient, quality workplace light<strong>in</strong>g. Additional features which promote environmental<br />

susta<strong>in</strong>ability <strong>in</strong>clude motion sensors <strong>and</strong> timers on electric appliances <strong>and</strong> light<strong>in</strong>g, as well as susta<strong>in</strong>ably sourced office carpet, <strong>in</strong>ternal<br />

partitions <strong>and</strong> ceil<strong>in</strong>g boards.<br />

Follow<strong>in</strong>g completion of construction, Menlo <strong>in</strong>tends to operate the facility us<strong>in</strong>g Lean methodologies <strong>and</strong> practices promot<strong>in</strong>g operational<br />

efficiency, environmental susta<strong>in</strong>ability, waste m<strong>in</strong>imization, energy <strong>and</strong> resource conservation, <strong>and</strong> recycl<strong>in</strong>g of reusable goods.<br />

With operations <strong>in</strong> S<strong>in</strong>gapore for nearly 20 years, Menlo provides a wide variety of logistics, warehous<strong>in</strong>g, <strong>in</strong>ventory <strong>and</strong> transportation<br />

management, distribution, fulfillment, light manufactur<strong>in</strong>g <strong>and</strong> supply cha<strong>in</strong> design <strong>and</strong> eng<strong>in</strong>eer<strong>in</strong>g services for local <strong>and</strong> mult<strong>in</strong>ational<br />

customers. The new Sunview facility will provide product warehous<strong>in</strong>g <strong>and</strong> distribution, high-velocity pick<strong>in</strong>g <strong>and</strong> pack<strong>in</strong>g operations,<br />

customized label<strong>in</strong>g <strong>and</strong> return management services. The company expects to employ 150 people once the site is fully operational.<br />

“By emphasiz<strong>in</strong>g green-certified development practices <strong>and</strong> materials, Menlo is sett<strong>in</strong>g the precedent for other lead<strong>in</strong>g companies to follow,”<br />

said Nit<strong>in</strong> Chhabra, Head of <strong>Supply</strong> Cha<strong>in</strong>, Philips Light<strong>in</strong>g. “The company is work<strong>in</strong>g to grow <strong>and</strong> exp<strong>and</strong> its bus<strong>in</strong>ess footpr<strong>in</strong>t <strong>in</strong> S<strong>in</strong>gapore<br />

while simultaneously reduc<strong>in</strong>g its environmental footpr<strong>in</strong>t. We are proud that Philips Light<strong>in</strong>g products will play a role <strong>in</strong> that process.” Philips<br />

will be a customer <strong>in</strong> the new facility, where Menlo will be provid<strong>in</strong>g a range of services <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>bound receipt of f<strong>in</strong>ished goods, storage <strong>and</strong><br />

<strong>in</strong>ventory management, pick/pack fulfillment <strong>and</strong> shipp<strong>in</strong>g of orders to local S<strong>in</strong>gapore <strong>and</strong> Asia regional customers.<br />

Menlo’s exist<strong>in</strong>g seven facilities are located throughout S<strong>in</strong>gapore with 450 employees <strong>and</strong> provide dedicated <strong>and</strong> multi-client distribution<br />

services. Menlo also operates additional multi-client logistics facilities <strong>in</strong> Southeast Asia, as well as Ch<strong>in</strong>a, India, Australia, North America <strong>and</strong><br />

Europe.<br />

Menlo Worldwide <strong>Logistics</strong>' Lean <strong>Supply</strong> Cha<strong>in</strong> <strong>Management</strong> Center Atta<strong>in</strong>s ISO 14001 Certification<br />

SAN MATEO, CA <strong>and</strong> AURORA, IL -- (MARKETWIRE) -- 04/12/12 -- Menlo Worldwide <strong>Logistics</strong>, the global logistics subsidiary of<br />

Con-way Inc. (NYSE: CNW), today announced its Lean <strong>Supply</strong> Cha<strong>in</strong> <strong>Management</strong> Center <strong>in</strong> Aurora, Ill., has been awarded ISO 14001<br />

certification by the International Organization for St<strong>and</strong>ardization (ISO).<br />

The ISO 14001 family of st<strong>and</strong>ards provides a framework for organizations to develop an environmental management system. The st<strong>and</strong>ards<br />

serve to encourage companies to evaluate all areas of bus<strong>in</strong>ess activity that have an environmental consequence <strong>and</strong> establish measures, controls,<br />

mitigation strategies <strong>and</strong> communications programs to manage their impact.<br />

"Menlo employs extensive Lean practices for waste reduction <strong>and</strong> cont<strong>in</strong>uous improvement," said Tony Oliverio, the company's vice<br />

20th Edition<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

Page 469 of 768


president of <strong>Supply</strong> Cha<strong>in</strong> Services. "Atta<strong>in</strong><strong>in</strong>g ISO 14001 certification was a logical step for Menlo, given our aggressive susta<strong>in</strong>ability strategy<br />

<strong>and</strong> complementary role that our Lean expertise plays to help us identify <strong>and</strong> remove waste from the carbon stream. It's an honor to earn this<br />

important certification as it further demonstrates to our customers our deep commitment <strong>and</strong> effective practices for m<strong>in</strong>imiz<strong>in</strong>g the<br />

environmental impact of our operations."<br />

The Aurora office is the first Menlo facility to be awarded with the certification. The extensive process began <strong>in</strong> January 2010, when the<br />

company's <strong>in</strong>ternal Environmental <strong>Management</strong> System (EMS) team took <strong>in</strong>ventory of the facility, mapped its carbon footpr<strong>in</strong>t <strong>and</strong> identified<br />

environmental aspects <strong>and</strong> impacts of the operation. Eventually, the team developed a system of compliance that mirrored the ISO 14001<br />

guidel<strong>in</strong>es <strong>and</strong> <strong>in</strong>itiated new procedures. These <strong>in</strong>cluded a comprehensive recycl<strong>in</strong>g, energy <strong>and</strong> waste reduction program <strong>and</strong> a system to<br />

capture, calculate <strong>and</strong> further manage greenhouse gas emissions.<br />

The benefits to new <strong>and</strong> exist<strong>in</strong>g customers of Menlo's ISO 14001 certification are many, <strong>in</strong>clud<strong>in</strong>g reduced energy consumption,<br />

identification <strong>and</strong> remediation of practices that generate environmental waste, <strong>and</strong> lowered risk (through environmental impact analysis).<br />

Additional benefits <strong>in</strong>clude <strong>in</strong>creased visibility to environmental performance <strong>and</strong> waste reduction opportunities. With a certified ISO 14001<br />

system <strong>in</strong> place, Menlo <strong>in</strong>tends to accelerate efforts to obta<strong>in</strong> ISO 14001 certification for additional facilities <strong>in</strong> North America <strong>and</strong> around the<br />

world. The company also plans to extend its carbon assessment <strong>and</strong> mitigation services to the supply cha<strong>in</strong> operations it conducts on behalf of<br />

its customers.<br />

As one of three primary bus<strong>in</strong>ess units of Con-way Inc., Menlo's ISO 14001 certification represents the latest advancement <strong>in</strong> the company's<br />

enterprise-wide susta<strong>in</strong>ability program, launched <strong>in</strong> 2009. Menlo also plans to collaborate with sister companies Con-way Freight <strong>and</strong> Con-way<br />

Truckload to help them <strong>in</strong>troduce ISO 14001 processes to reduce environmental impact at their facilities as well.<br />

Menlo Worldwide Asia Pacific Granted Secure Trade Partnership (STP) by S<strong>in</strong>gapore Customs<br />

3PL Meets Strict Program Guidel<strong>in</strong>es for <strong>Supply</strong> Cha<strong>in</strong> Security Measures <strong>and</strong> Practices<br />

SAN MATEO, Calif., <strong>and</strong> SINGAPORE - March 12, 2012 - Menlo Worldwide Asia Pacific Pte Ltd., the global logistics subsidiary of Conway<br />

Inc. (NYSE: CNW), today announced it has achieved Secure Trade Partnership (STP) from S<strong>in</strong>gapore Customs. A voluntary program, STP<br />

is consistent with the World Customs Organization (WCO) SAFE Framework of St<strong>and</strong>ards <strong>and</strong> serves to secure <strong>and</strong> facilitate global trade.<br />

Menlo is one of only 75 companies that have been certified under the STP program s<strong>in</strong>ce the program's <strong>in</strong>ception <strong>in</strong> 2007.<br />

Menlo <strong>in</strong>itiated the STP process <strong>in</strong> April 2011 <strong>and</strong> subsequently underwent several series of facility audits <strong>and</strong> procedural validations<br />

performed by S<strong>in</strong>gapore Customs. To achieve STP endorsement, Menlo was required to have security management systems <strong>in</strong> place, conduct<br />

risk assessments of their bus<strong>in</strong>ess operations <strong>and</strong> implement security measures <strong>in</strong> eight key areas: premises <strong>and</strong> access controls, personnel,<br />

bus<strong>in</strong>ess partners, cargo, conveyance, <strong>in</strong>formation <strong>and</strong> IT, <strong>in</strong>cident management <strong>and</strong> <strong>in</strong>vestigations, <strong>and</strong> crisis management <strong>and</strong> <strong>in</strong>cident<br />

recovery.<br />

STP <strong>in</strong>dicates to our customers <strong>and</strong> to the government of S<strong>in</strong>gapore that we take the adoption <strong>and</strong> implementation of security measures<br />

seriously <strong>and</strong> are committed to adher<strong>in</strong>g to security best practices across the entire supply cha<strong>in</strong>, said Desmond Chan, manag<strong>in</strong>g director, South<br />

Asia, Menlo Worldwide <strong>Logistics</strong>. Our security <strong>and</strong> operations teams <strong>in</strong> S<strong>in</strong>gapore worked diligently over many months to reach this important<br />

milestone <strong>and</strong> I thank them for their dedication <strong>and</strong> commitment. This is a well-deserved accomplishment <strong>and</strong> one <strong>in</strong> which we are prepared to<br />

lend our ongo<strong>in</strong>g support long <strong>in</strong>to the future.<br />

As an STP-certified company, Menlo br<strong>in</strong>gs <strong>in</strong>creased visibility <strong>and</strong> greater efficiency <strong>in</strong>to its supply cha<strong>in</strong>. Additionally, the company<br />

benefits from:<br />

- An enhanced reputation as a low-risk company<br />

- Reduced <strong>in</strong>spection or expedited clearance <strong>in</strong>to <strong>and</strong>/or out of S<strong>in</strong>gapore<br />

- Designated account managers<br />

- Trade facilitation benefits such as bank guarantee reduction<br />

- Automatic recognition as a known consignor (KC) under the Regulated Air Cargo Agent Regime (RCAR)<br />

Hav<strong>in</strong>g worked closely with the Menlo team <strong>in</strong> South Asia over the past six months, I've seen firsth<strong>and</strong> the importance they place on supply<br />

cha<strong>in</strong> security as evidenced from the strong support from the highest levels of management, said Jeffrey Ho, account manager, S<strong>in</strong>gapore<br />

Customs. I congratulate Menlo Worldwide for this excellent achievement <strong>and</strong> look forward to cont<strong>in</strong>ued collaboration with Menlo as a trusted<br />

partner of S<strong>in</strong>gapore Customs.<br />

Five Menlo facilities <strong>in</strong> S<strong>in</strong>gapore are now STP-validated: 30 Boon Lay Way; 6 Pioneer Walk #02-06WH Gold<strong>in</strong> <strong>Logistics</strong> Hub; 22A Benoi<br />

Road; 10 Penjuru Road; <strong>and</strong> 46 Penjuru Lane, C&P Hub 1, Block 1 CLS-Warehouse A #04-01.<br />

20th Edition<br />

©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA<br />

Page 470 of 768

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!