Who's Who in Logistics and Supply Chain Management

COUNTRIES with OFFICES Countries served through owned offices or exclusive agents
Menlo
Africa/Middle East Asia/Pacific Australia/New Zealand Europe North America Latin/South America
China
Australia
Belgium
Canada
Brazil
Hong Kong
Czech Republic Mexico
Chile
India
Germany
United States
Malaysia
Great Britain
Singapore
Hungary
Taiwan
Thailand
Ireland
Netherlands
EDITOR'S COMMENTS
Menlo Worldwide Logistics is one of the leading U.S.-based 3PLs. It has adapted a Lean Six Sigma
management approach that is having positive results both on its profitability and in developing new business.
Menlo has solid inbound supply chain management and finished goods distribution capabilities. It is a prime
contractor for the U.S. Transportation Command’s Defense Transportation Coordination Initiative and the lead
logistics provider for truck manufacturer Navistar. Menlo is also a key 3PL for HP, Caterpillar, GM, Sears and Dow.
Menlo has significantly grown its China and Southeast Asia network and is continuing to expand its European
operations. Both are adding significant pieces of business with retailers such as Triumph in the U.K. and Malaysia
and Puma in Singapore. In Southeast Asia, Menlo runs 27 value-added warehousing operations with 3.5 million
square feet of space and a workforce of 1,175.
Menlo's IT capabilities, including its recent addition of Oracle-TM’s transportation management system, provide
it with solid supply chain management and optimization capabilities.
Provider's Strengths
Combined and integrated supply chain management, 4PL/lead logistics provider capabilities, significant Asia
Pacific presence and expanding global footprint.
Provider's Weaknesses
CASES & NEWS
Menlo Refines its China 3PL Model and Gains Business [To view in full html format, follow this link: http://www.3plogistics.com/Menlo_2-
2012.htm]
Shanghai, China Site Visit
February 20, 2012
Key Personnel:
Bob Bassett, Vice President of Sales and Marketing
Leong Choong Cheng, Senior Director of Business Development, North Asia
Jack Wu, Operations Manager
Steven Chen, Manager of Quality, Allison Transmission Asia Pacific Operations
Menlo China Overview
Menlo Worldwide Logistics generated gross revenue of $1.5 billion and net revenue of $572 million in 2010. It is on track to grow by over
6% in 2011 driving its gross revenue to approximately $1.6 billion. Menlo’s global staff of approximately 6,500 manages operations in 20
countries on five continents. Menlo’s expanding operational footprint has moved it into a select group of third-party logistics providers (3PLs)
which we classify as tier-one major market 3PLs. Globally, HP is Menlo’s top customer, followed by Navistar, and the DTCI (Defense
Transportation Coordination Initiative). It was also awarded a significant contract from GM to manage GM’s global spare parts and aftermarket
accessories logistics operations in late 2011.
We recently had the opportunity to get updated on Menlo’s Chinese operations during a visit to Shanghai. Menlo has over 47 years of
experience in China. In 1962, it established a Hong Kong office and in 1999 Menlo established a wholly-owned subsidiary, Shanghai-Menlo
Worldwide Logistics (Shanghai) Company Ltd., in the Waigaoqiao (WGQ) Free Trade Zone (FTZ). In 2006, Menlo formed a wholly-owned
foreign enterprise (WOFE) allowing it to provide domestic warehousing and transportation services. In 2007, Menlo greatly expanded its
domestic mainland China supply chain management network through the acquisition of Shanghai based Chic Logistics. Chic was a significant
domestic Chinese provider of non-asset based transportation management and value-added warehousing services. In 2009, Menlo rebranded the
Menlo/Chic China operations as Menlo Worldwide Logistics, North Asia.
Today, Menlo North Asia is operated by a staff of 1,000. According to Menlo, it has refined its China 3PL model and marketing efforts to
focus less on competing with local Chinese 3PLs for tactical logistics business and is concentrating on working strategically with domestic and
multinational companies needing more complex logistics solutions. It has been using Menlo’s consulting services such as distribution network
modeling as an entrée to developing new 3PL business. Key Menlo China accounts include: B&Q, Eaton, GM, Mary Kay, New Era, P&G,
Powerwave, Shanxi Coking Group, and Unilever.
Menlo is a lead logistics provider (LLP) for Mary Kay in China managing the transportation, value-added warehousing, and sales counter
operations for Mary Kay’s domestic manufacturing to direct sales channel. Menlo is also working with Eaton in North China performing valueadded
warehousing and distribution services for Eaton’s uninterrupted power supply products. It is also working with Shanxi Coking Group
managing coal transportation in Shanxi Province in Western China. Powerwave is a global Menlo customer. In China, Menlo is managing
Powerwave's warehousing and domestic finished goods distribution.
For future growth, Menlo China is targeting customers in the following vertical industries and channels:
20th Edition
©Copyright 2012 Armstrong & Associates, Inc., Stoughton, WI 53589 USA
Page 464 of 768