Menlo Worldwide Logistics
||This article appears to be written like an advertisement. (May 2012)|
|Headquarters||San Mateo, California|
Robert Bianco, President
|Revenue||US$ 1,589,994,000 (2011)|
|Operating income||US$ 54,747,000 (2011)|
Menlo Worldwide Logistics is a global supply chain company operating in 20 countries worldwide. Its core business offerings include third-party logistics and supply chain management. Menlo Worldwide Logistics is a business unit of Con-way, and shares its corporate headquarters with its parent company in San Mateo, California. Sister companies include Con-way Freight, Con-way Truckload, and Con-way Multimodal.
Menlo Worldwide Logistics specializes in the integration of all functions across the supply chain, from sourcing of raw materials through product manufacturing to the distribution of finished goods. The company currently operates 210 locations worldwide and has 18,000,000 square feet (1,700,000 m2) of warehouse capacity.
The idea for Menlo Logistics was developed in the late 1980s. At that time, CF Inc.’s director of marketing presented the idea for the company's creation — an organization that offered warehouse, inventory, and transportation management as well as full integration of supply chain links through customized systems and software — to upper management. The initial business plan was to create, implement, and manage logistics projects for its customers.
On October 26, 1990, Menlo Logistics Inc. was formed. The name was a deliberate choice to prompt an association with California’s Menlo Park, which was well known as the home of venture capitalists and high-tech industries. Logistics consultants and warehousing experts ran the dedicated, contract carriage operations. The start-up was “carrier neutral” and still does not give special treatment to its sister organizations or to any particular outside carriers.
Menlo Logistics established itself as a leading third-party logistics (3PL) provider in the 1990s, and rode the popularity of the outsourcing trend by notching double-digit growth every year during that era. One of Menlo’s early success stories was its successful bid on a $100 million distribution contract with Sears. The department store wanted to close its internal distribution system, which cost Sears about twice as much as its competitors at 7 percent of its sales.
In December 2000, Menlo Logistics collaborated with General Motors to create Vector SCM, a new global supply chain management company serving the automotive industry. Vector SCM proved to be a role model for a successful lead logistics provider business model.
Effective January 1, 2002, Con-way formed Menlo Worldwide Logistics in its current form by combining Menlo Logistics (renamed Menlo Worldwide Logistics), Vector SCM and Emery Worldwide Forwarding (later renamed Menlo Worldwide Forwarding). Menlo Worldwide Logistics absorbed the operations of Emery’s logistics unit, Emery Global Logistics (EGL). The EGL operations gave Menlo Worldwide Logistics presence in Asia and South America, and expanded its European scope. The company began leveraging these operations to pursue organic growth outside of North America and grow its European footprint.
In December 2004, Con-way sold Menlo Worldwide Forwarding to United Parcel Service, and Con-way streamlined its operating units by merging Con-way Transportation Service’s logistics unit, Con-way Logistics, into Menlo Worldwide Logistics. This completed the rationalization of three logistics entities into a single business unit. In 2006, GM exercised its right to purchase Menlo Logistics' interest in Vector SCM, and the sale was completed in December.
In seeking to grow its business in the Asian logistics market, Menlo purchased two Asian logistics companies, Cougar Holdings Pte, Ltd. and Chic Holdings, Ltd. in 2007. Singapore-based Cougar enlarged Menlo’s operational scope in southeastern Asia, and Shanghai-based Chic significantly expanded Menlo’s presence in China.
According to its website, Menlo Worldwide Logistics provides the following services to its clients:
• Dedicated contract warehousing • Multi-client warehousing • Transportation services • Configuration • Light assembly • Packaging • Kitting • Order fulfillment • Postponement • Reverse logistics • Supply chain network analysis and design • Vendor-managed inventory
Menlo Worldwide Logistics has been recognized with many industry awards during the past two years.
- Inbound Logistics' Top 10 Providers of 3PL Excellence (2009) 
- Inbound Logistics' magazine's Top 100 3PL Provider Award (2008) 
- 2008 Supply & Demand Chain Executive 100 
- Food Logistics Top 50 3PL Providers (2008) 
- Menlo Worldwide Logistics' website
- A case study from Global Logistics and Supply Chain Strategies magazine of Menlo and Electrolux
- "2011 Annual Report to Shareholders". Con-way,Inc.
- Rodengen, Jeffrey L. (2008) The Legend of Con-way. Write Stuff Enterprises, Inc.
- Logistics Management Online, logisticsmgmt.com. September 10, 2007.