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Who's Who in Logistics and Supply Chain Management

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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

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