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18th Edition

Who's Who in Logistics and Supply Chain Management - International

* Eighteenth Edition *

© Copyright 2010

Armstrong & Associates, Inc.

100 Business Park Circle, Suite 202, Stoughton, WI 53589 USA

Phone: +1-608-873-8929

Fax: +1-608-873-5509

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Armstrong & Associates, Inc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Armstrong & Associates delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Armstrong & Associates can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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Table of Contents

Section 1 - 3PL Market Growth & Logistics Costs

U.S. 3PL Market Growth U.S. 3PL Market Revenues & Profitability by 3PL Segment Global Logistics Costs & 3PL Revenue Estimates


8 9 10 12 15 18 22 33 36 39 42 45 48 52 55 58 64 70 76 82 85 88 93 100 107 110 113 117 120 126 129 137 140 143 146 156 159 164 171 175 180 184 187 190 195 199 205 211 219 222

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Section 2 - International Logistics Providers

Definitions and Explanations of Terms ACCEL Logística AFL Logistics Agility Aimar S.A. Aimi Cargo S.A. Almacenadora, S.A. Almacenadora de Depósito Moderno, S.A. de C.V. (ADEMSA) Almacenadora Mercader S.A. Almagrán y Almacenar Almaviva S.A. Alpopular S.A. América Latina Logística S.A. (ALL) APL Logistics Aqua Logistics Limited Aramex Archbold Logistics Ltd. ARS Altmann AG Arvato Logistics Services Barloworld Logistics BDP International Beijing Hua Ri Fei Tian Freight Transportation Co., Ltd Beijing Logistic Inc. Belfor Logistics N.V. BettR Logistics Bibby Distribution Ltd Binotto S.A. BLG Logistics Group AG & Co. KG Blue Express International S.A. Bomi de México, S.A. de C.V. C&D Logistics Group Co., Ltd. C.H. Robinson Worldwide, Inc. Cargo Express International (H.K.) Ltd. Cargo Services Far East Limited Caterpillar Logistics Services, Inc. Celsur Logística, S.A. de C.V. CEVA Logistics China Resources Logistics (Holdings) Ltd. CHINATRANS International Limited City Ocean Logistics Co., Ltd. CWT Limited D.Logistics AG DACHSER GmbH & Co. KG Damco DB Schenker Logistics De Rooy Logistics BV De Well Group

18th Edition ©Copyright 2010 Armstrong & Associates, Inc., Stoughton, WI 53589 USA

Section 2 - International Logistics Providers

DHL Supply Chain & Global Forwarding Dimerco Express Group DSV A/S Egerland Automobillogistik GmbH & Co. KG Emons Spedition GmbH Ewals Cargo Care B.V. Expeditors International of Washington, Inc. Fatton Transport FedEx Supply Chain Services/FedEx Trade Networks Fiege Logistics AG Freight Links Express Holdings Limited GEFCO Geodis GIRAG GLOVIS Co., Ltd. Grupo TPC Guangzhou Hutchison Logistics Services Co. Ltd. Headwin Logistics Co., Ltd. Hellmann Worldwide Logistics GmbH & Co. KG Hercules Logistics & Forwarding Ltd. HurryTop Logistics I.T.S. Fabry SA Integrated Distribution Services Group Ltd (IDS Group) IMPERIAL Logistics Integrated Logistics Berhad ITG GmbH Internationale Spedition + Logistik Julio Simões Logística S.A. Kelron Logistics Kerry Logistics Network Ltd Kintetsu World Express, Inc. (KWE) Konsortium Logistik Berhad Kuehne + Nagel Levent Livingston International, Inc. Log-In Logística Intermodal S.A. Logística Industrial S.A. (Loginsa) Logwin AG Logyx Almacenadora S.A. de C.V. Luís Simões Mainfreight Limited Menlo Worldwide Logistics Nippon Express Co. Ltd. Nissin Corporation/Nissin Group Norbert Dentressangle Group NYK Logistics Co., Ltd. Onest Mexico, S.A. de C.V. OOCL Logistics Limited Oriental Logistics Holdings Co. Ltd. Panalpina World Transport (Holding) Ltd. Pantos Logistics Co., Ltd. Penske Logistics Phoenix International Freight Services, Ltd. Poh Tiong Choon Logistics

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226 236 240 245 248 251 256 265 268 275 282 287 292 298 301 304 307 310 313 318 321 324 327 334 340 345 348 351 356 362 367 371 380 383 387 391 394 399 402 405 410 419 424 427 432 438 441 445 449 457 460 470 475

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Section 2 - International Logistics Providers

Rapidão Cometa Redpack S.A. de C.V. Rical Logistics Rudolph Logistik Gruppe GmbH & Co. KG Ryder Supply Chain Solutions Sankyu Inc. Scanwell Logistics (HK) Ltd. SCI Group Inc. SDV International Logistics Shangdong Jiayi Logistics Co., Ltd. Shanghai Dajin Logistics Co. Ltd. Sinotrans Ltd. Qingdao Smart Cargo International Services Ltd. STACI Sudamericana Agencias Aéreas y Marítimas S.A. (SAAM) Sun Logistics Tegma Gestão Logística S.A. Tito Global Trade Services LLC Toll Global Forwarding Limited Toll Holdings Limited Topocean Group TRADISA Transport Corporation of India Ltd. Transportadora Americana Ltda. UPS Supply Chain Solutions UTi Worldwide Inc. VersaCold Logistics Services Wared Logistics Wheels Clipper Wincanton Logistics Yobel Supply Chain Management Yusen Air & Sea Service Co., Ltd. Zimag Logistics 478 482 486 489 492 501 505 509 515 520 523 526 532 535 538 541 545 550 553 558 563 566 569 574 577 586 597 602 606 610 615 618 623

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Company Name Menlo Worldwide Logistics Address: 2855 Campus Dr., Ste. 300, San Mateo, CA 94403 USA Phone Number: 866-466-3656 Email Address: [email protected] Fax Number: 650-378-5484 Website Address:

Subsidiaries or Related Companies Con-way Freight Asset Focus: A, N Con-way Truckload Con-way Multimodal


Parent Corporation: Market Area: Founding Business: Con-way, Inc.

(A = Asset Based, N = Non Asset Based) Global Motor & Airfreight Transportation

Year Started in Logistics: 1990


Overall Capability of Provider: Tier 1 major markets global SCM and LLP.


Robert Bianco Robert Bassett Gary Kowalski President VP Sales & Marketing COO Julie Hui John Herb VP Finance VP Human Resources


Total Logistics Revenue ($Millions): Total Net Logistics Revenue ($Millions): Total Logistics Employees (Including Drivers): Total Long-Term Contracts Held: Average Length of Logistics Contract (Years): 1,326 514 ** 6,500 200 3-7 Ticker Symbol CNW Exchange: NYSE * Financial information may be actual company reported or A&A estimates. ** Net Logistics Revenue is net of pass-through revenues for purchased transportation. *** Average exchange rates for the respective year are used to convert revenues to USD.


Dedicated Contract Carriage Power Units/Trucks: Total Tractors: 34 Total Trucks: Total Other: 55 9 Total Transportation Assets: Total Tractors: Total Trucks: Total Trailers: Total Aircraft: Total Ocean: Total Other: 2 Total Warehouses & Distribution Centers: Total Warehouses/DC's: 120 Whse/DC Space (MSF): Total with Rail Doors: Avg Truck Doors per DC: Asset Ownership v.s. Leased: Transportation Equipment: Mostly Leased Warehouses/DC's: Mostly Leased 18

Dedicated Contract Carriage Trailers: Total Dry Van: 163 Total Reefers: Total Flatbeds: Total Tankers: Total Other:


Total Annual Ocean TEUs: Total Annual Airfreight Metric Tons: Total Licensed Customs Brokers: (For detailed industry information, see "Customers" section.)

Elements Technological Food, Groceries Healthcare


Automotive Industrial Consumer Goods Retailing


Overall Information Systems Rating: E (E=Excellent, G=Good, C=Capable/Adequate, and I=Inadequate) Software Vendor/Brand: Software Type: Transportation Management System (TMS): Proprietary--LMS, Infor/CAPS, Oracle--OTM, TR Transportation Planning and Optimization: Warehouse Management System (WMS): Network Modeling/Site Location: Freight Bill Audit/Payment Software: ERP/Order Management System: Other Systems Capabilities: Bar Coding Demand & Supply Forecasting Proprietary--LMS, Infor/CAPS Infor WM Provia (Menlo modified), SIMS Infor/CAPS TMS, Proprietary--LMS Proprietary--LMS EDI Handling ERP Interfaces Integrated TMS & WMS Internet Order Fulfillment Internet Customer Access Radio Frequency Devices Real-time Track & Trace XML Data Handling

TMS Optimization Routines: End-to-end Matching/Continuous Moves Mode Conversion/Optimization Many to Many Supply Network Optimization

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Transportation Planning Carrier Mgmt and Contracting Inbound Shipment Planning Outbound Shipment Planning End-to-end Load Matching Mode Conversion/Optimization Transportation Execution Contract File Maintenance Exception Handling Load Tendering Loss/Damage Claims Tracking & Tracing Freight Bill Payment: Pre-Audit Post-Audit Performed In-house Outsourced Transportation Services Air Freight Forwarding Consolidation/Deconsolidation Dedicated Contract Carriage Freight Brokerage Home Delivery Less than Truckload (LTL) Ocean Freight Forwarding Rail Rail TOFC/COFC Small Package Specialized Truckload (TL)


Warehouse/Distribution Center Facilities Mgmt Frozen Value-Added Services Call Centers Cross Docking Customization Inventory Control/Vendor Mgmt KanBan Refrigerated Kitting Labeling Lot Control Merge in Transit Manufacturing Support Rail Siding Pick/Pack Pool Distribution Repair/Refurbish Returnable Container Mgmt Reverse Logistics Store Support/Direct Store Delivery Sequencing/Metering Specialty Packaging Sub Assembly


Other 3PL Services Consulting/Process Reengineering Factoring/Financial Services Installation/Removal Order Mgmt Purchase Order Mgmt Project Logistics Quality Control Union Services

Special Skills & Material Handling Bulk Commodities Hazardous Materials Other Services:

Food Grade/Sterile

Temperature Controlled

ISO Certified Certification Locations: Select locations worldwide.


International Services AES/AMS/C-TPAT LCL Consolidation Customs Brokerage Export Crating Duty Drawback Foreign Trade Zone NVOCC Port Services

TM-Transportation Mgmt WM-Whse/DC Mgmt VA-Value-Added DCC-Dedicated Contract Carriage Inte-Integrated TM&WM IM-Intermodal Intl-International SCM-Supply Chain Network Mgmt. Lead-Lead 3PL

Areas Served Africa/Middle East Asia/Pacific Australia/New Zealand

Europe Latin/South America North America


A sample of 3PL clients. Customer

3Com A.O. Smith Advanced Micro Devices B&Q Bayer MaterialScience Blue Coat Systems Bobcat Braun GmbH Canon Caterpillar CHEP Cisco Systems

Services Rendered by Menlo Location

Santa Clara, CA, Netherlan US Netherlands China US Netherlands China, Netherlands China


Computers, Office Equipment Electronics, Electrical Equipment Semiconductors, Electronic Components Specialty Retailers Chemicals Network, Communications Equipment Construction & Farm Machinery Household & Personal Products Computers, Office Equipment Construction & Farm Machinery Packaging, Containers Network, Communications Equipment





Inte IM

Intl SCM Lead Other

IL Netherlands

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Africa/Middle East Asia/Pacific

China Hong Kong India Malaysia Singapore Taiwan Thailand

Countries served through owned offices or exclusive agents Australia/New Zealand


Menlo Latin/South America

Brazil Chile


Belgium Czech Republic Germany Great Britain Hungary Ireland Netherlands

North America

Canada Mexico United States


Menlo is one of the leading U.S. based 3PLs. It is a prime contractor for the U.S. Transportation Command's Defense Transportation Coordination Initiative. Menlo's two Asian acquisitions position it as a major 3PL in China and Southeast Asia and it has growing European operations. Menlo has adapted a lean six-sigma management approach that is having positive results both on its profitability and on securing high-margin, high-tech industry customers. Menlo has solid inbound supply chain management and finished goods distribution capabilities. Its I.T. 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 SCM, 4PL and LLP capabilities, significant Asia Pacific presence and expanding global footprint. Provider's Weaknesses


Menlo Worldwide Logistics Continues its North Asia Expansion] Shanghai and Suzhou, China Site Visits January 6, 2010 Key Personnel: Gary So ­ Managing Director, North Asia Jess Goldberg ­ Vice President, North Asia Bryan Yan Fu ­ Business Development Manager, North Asia Tom Song ­ Operations Manager, Suzhou China Zhang Qiang ­ Warehouse Operations Manager Menlo China Overview In a recent visit to Shanghai, we had the opportunity to review Menlo Worldwide Logistics' expanding Chinese operations. Menlo Worldwide Logistics has over 47 years of experience in China. In 1962, it established a Hong Kong office and in 1999 Menlo Worldwide Logistics established a wholly-owned subsidiary, Shanghai-Menlo Worldwide Logistics (Shanghai) Company Ltd., in the Waigaoqiao Free Trade Zone. 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 Chinese 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. Operated by a staff of 1,400, Menlo North Asia had gross revenue/turnover of over $68 million in 2008 and has developed significant warehousing and transportation network coverage in mainland China. Its total warehousing network has 2.1 million square feet (197,000 square meters) of warehouse space and Menlo's transportation capacity exceeds 9,100 trucks. Significant warehousing operations have been established in 12 key cities: Beijing, Chengdu, Guangzhou, Hong Kong, Shanghai, Shenyang, Shenzhen, Suzhou, Tianjin, Urumchi, Wuhan, and Xian. Menlo' s network operations are managed from seven regional branch offices including its centralized transportation management operation collocated with its Shanghai headquarters. In North Asia, Menlo serves customers in the consumer packaged goods, automotive, industrial, medical equipment, health & beauty, and high technology vertical industries. Menlo's North Asia warehouse network processes approximately 3,000 to 10,000 customer orders per day. It also provides customers with solid domestic transportation management capabilities for less than truckload, truckload, domestic air, in-land barge, and rail shipments. In 2008, Menlo managed in excess of 1,080,000 shipments between approximately 700 cities. In addition to its use of outside carriers, Menlo maintains a fleet of 50 trucks equipped with GPS (global positioning units) for satellite tracking. Its annual freight under management exceeds $50 million. The best benchmark of Menlo's value-added warehousing and distribution capabilities in China is its Mary Kay operation. We had a chance to visit this operation in February 2008 and it has grown considerably since then. In our opinion, it is one of the most sophisticated logistics operations we have seen in China. Menlo processes over two million outbound sales orders per year for Mary Kay from its central distribution center in Shanghai, seven regional distribution centers, and 73 direct sales counter (order pick up point) operations throughout China. Mary Kay Shanghai Operations In the Songjiang District of southwest Shanghai, Menlo is running a 23,000 square meter (247,570 square foot) warehouse for Mary Kay cosmetics. 19,400 square meters of the warehouse is dedicated to a central distribution center (CDC) operation that manages the replenishment

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of cosmetics inventories for seven Mary Kay regional distribution centers (RDCs) within China. The CDC operation receives a daily average of 30 inbound truckloads of Mary Kay product from its manufacturing operation in Hangzhou. The CDC is staffed with 18 people responsible for replenishing inventories in Mary Kay's seven China RDCs located in Beijing, Chengdu, Guangzhou, Shanghai, Shenzhen, Wuhan, and Xian. Over 1,000 stock keeping units (SKUs) of product are maintained in on-hand inventory. Menlo uses a proprietary warehouse management system (WMS) with an EDI interface to Mary Kay's JD Edwards enterprise resource planning (ERP) system. Menlo's WMS is used in conjunction with radio frequency (RF) devices to manage overall work flows. The connected systems ensure accurate order information flows and inventory levels in the CDC and RDC operations. The Shanghai RDC operation is collocated in 3,600 square meters of the warehouse and has an approximate staff of 25. Seventy percent of the thousands of orders it fulfills each day are direct to salesperson residential orders. The remaining orders are delivered overnight to 19 Shanghai area Mary Kay pickup counter operations. Most of the high-volume RDC order picking is performed by 14 pickers in two main pick modules. An average of over 200,000 order lines of product are picked each day. Both pick modules are segmented into seven picking zones and stations. Paper orders have incorporated barcodes which are scanned using RF devices at each station. Specified products are picked from rack positions and placed into cartons on a roller conveyor. Every individual carton of Mary Kay product has an enclosed RFID (radio frequency identification) tag to identify its contents and specifications. The RFID tag is also scanned at each station to verify order accuracy during the picking process. After picking, the orders are packed out and a label is generated for each carton containing shipping and order number information. All of the outbound transportation from the RDC is managed by Menlo using China Post, a small number of outside carriers, and its own trucking fleet. Suzhou Powerwave Dedicated Warehouse Approximately 50 miles west of Shanghai in Suzhou, China, Menlo runs a dedicated value-added warehousing and distribution operation for Powerwave Technologies, a wireless communications network solutions company. The 7,200 square meter (77,500 square foot) Menlo Powerwave Suzhou warehouse began operations January 1, 2008 after a three-month start up. It is located in a newer warehousing campus and is very modern with three-high storage racking and open shipping and receiving areas. It is very similar to other Menlo warehouses we have visited in the U.S. and Europe. The operation has a staff of 21 managing several hundred SKUs of finished goods inventory and wireless communications components. Warehousing services performed include product receiving, business-to-business order fulfillment, picking, packing and repacking, and overall inventory management. One-hundred percent of all outbound orders are checked before shipping to ensure order accuracy. The operation also prepares export documentation as needed for outbound shipments. Powerwave has approximately 20 to 60 outbound shipments per day from Suzhou. The Powerwave operations are run using RF devices interfaced with Menlo's proprietary SIMS WMS. SIMS in-turn interfaces with Powerwave's Oracle ERP for order management and visibility. The operations staff has also been trained using Menlo's key lean management principles. This training has paid off; for the four key performance indicators (KPIs) being tracked for Powerwave, Menlo is currently running at 100% in each. The KPIs include shipping and inventory accuracy and inbound receiving and outbound order processing metrics. North Asia Operations Review Summary Menlo has taken significant steps in becoming a key 3PL in the domestic Chinese market. It is one of the largest players in contract logistics on the mainland, and the level of sophistication of its operations is closer to those of Western 3PL operations when compared to most of the manual-intensive Chinese operations we have visited. By leveraging its local expertise, deploying its lean management principles and solid information systems, engineering, and contract logistics skills, Menlo Worldwide Logistics has gained a solid footing for future growth in China. Menlo Worldwide Logistics Extends its Network Transportation Management Reach] Aurora, IL USA Site Visit August 27, 2009 Key Personnel: Bob Bianco, President Bob Bassett, Vice President of Sales and Marketing John Beckett, Vice President ­ Aurora Network Logistics Center Operations Tommy Barnes, Director of Transportation Procurement Menlo Worldwide Network Logistics Center (NLC) Overview While we have reported on many Menlo global warehousing operations over the past years, warehouse management is only half of the Menlo 3PL story. With a global transportation management staff of 374 serving 45 customers, Menlo managed approximately 3.3 million international and domestic transportation shipments in 2008. It is on track to manage $1.2 billion of transportation in 2009 and is targeting to grow its transportation management business to over $2 billion by the end of 2012. A large amount of Menlo's transportation is managed from its 150 person Network Logistics Center (NLC) operation in Aurora, IL making the NLC a significant player in domestic transportation network management. Approximately 83% of the transactions the NLC manages are for outbound shipments and 17% are inbound. Of the NLC transactions, 72% are for domestic shipments and 28% are international. Menlo's key transportation management accounts include more recent customers Bayer MaterialScience, Dana, and the DTCI (Defense Transportation Coordination Initiative), and long-running Menlo customers Dow, HP, Starbucks, Ricoh, Sears, Electrolux, and Stanley. Menlo's NLC utilizes a straightforward daily transportation management approach. Over 97% of orders are received electronically from customers via EDI (electronic data interchange), direct data feeds, or through manual order entry into Menlo's proprietary supply chain management system dubbed "LMS" (Logistics Management System). The orders are then consolidated into shipments and the appropriate transportation mode is determined based upon shipment size and service requirements. From there, a primary carrier is selected based upon its cost, service performance, and operating territory. Once all of the orders are planned and the plan is approved by the NLC's staff of approximately 70 load planners, shipments enter the transportation execution phase and are tendered to the respective carriers. The LMS handles both domestic transportation modes and international air and ocean shipping. It has multi-currency and measurement unit capabilities and provides for currency conversion. Secondary service for non-transportation partner fees (storage, customs, etc.) functionality has

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also been developed allowing the LMS to provide customers with total cost calculations for transportation and services at an order level. The LMS also has web applications for order entry, tracking and tracing shipments, event management, rate calculations, and carrier interfaces for load tendering. Additionally, to help better manage transportation functions, Menlo has developed a number of standard reports in its LMS. NLC operations utilize multiple planning boards and numerous quality and productivity measures which are tracked each day and over time. Menlo is driving "Lean" management principles throughout its organization and the NLC is no exception. Its customers are each supported by the Delivery Performance Team. The original concept for the team was developed some years ago by Menlo for HP. It works with customers and carriers to define a perfect order in the customer's terms and manage its transportation processes in light of the definition. Each customer's complete network (inbound and outbound) is analyzed and modeled on an ongoing basis to make process improvements. Prior to daily transportation management by the NLC, it works with most customers in rationalizing their carrier networks. It uses the web based "EMPTORIS" procurement tool to structure single and multi-customer request for proposal (RFP) carrier procurement activities. The tool 's functionality allows Menlo to standardize carrier rate and cost structures, contracts, and develop standard agreed to performance metrics for its customers. Menlo is currently working with over 530 domestic and international transportation providers and is an active Environmental Protection Agency SmartWay transport partner. The customer case studies below are good examples of the NLC/Menlo's transportation management capabilities. DTCI (Defense Transportation Coordination Initiative) Customer Case Study In 2007, the United States Transportation Command (USTRANSCOM) awarded the Defense Transportation Coordination Initiative (DTCI) contract to Menlo. Menlo was contracted to develop, deploy, and manage an integrated transportation management program incorporating daily transportation planning and execution for all Department of Defense (DOD) material shipments moving in and out of continental US DOD facilities. It was a natural project for the NLC. The DTCI rollout has been in multiple phases and when completed, the operations will encompass up to 68 DOD sites. The total freight under management will be approximately $1.6 billion over the contract life. Menlo is currently implementing Phases II & III which will be concluded in December. Upon completion, it will be managing shipments between 68 DOD sites. Approximately 72% of the shipments currently being managed by the 37 person DTCI NLC operation are less-than-truckload (LTL), 15% are airfreight, and 13% are truckload (TL) and specialized TL. To date, Menlo has realized gross savings of over 25% for USTRANSCOM through improved carrier procurement and carrier management. For example, it has been able to convert many air shipments to lower cost ground transportation providers. Thus far the NLC is not systematically consolidating LTL to TL, but it will begin mode conversion/optimization operations in 2010 once Government systems can accommodate complex routing instructions. This should add significant additional savings. Overall, the NLC operations are performing very well. Menlo has provided USTRANSCOM with on time pickups within eight operational hours of shipment tenders for over 98% of the shipments it has handled and has made on time deliveries on nearly 96% of the total shipments in the current period. In addition, small businesses are receiving 50% of the transportation spend through the initiative which greatly exceeds the contractual target of 23%. Dana Customer Case Study Dana is leading supplier of axles, drive shafts, and structural, sealing and thermal-management products to major vehicle and engine manufacturers in the global automotive, commercial vehicle, and off-highway markets. In 2008, Dana partnered with Menlo to reduce its logistics costs and improve transportation service levels for its US and Canadian plants. Menlo deployed a centralized Lean Control Center, leveraging other Tier 1 suppliers. The solution incorporates Menlo logistics specialists colocated with Dana's global logistics team in Fort Wayne, IN. Combined, this team exceeded savings and service expectations, which led to the expansion of the account one year later to include Dana's Mexican logistics. The Mexican addition, based on-site at Dana's Queretaro, MX location, along with a leveraged Menlo staff in Guadalajara, MX, supports daily execution of logistics plans engineered via Menlo's engineering resources. Overall, Menlo through a lean foundation and its LMS system has developed a cohesive, information rich, solution for all of Dana North America. Summary With expanding European, Asian, and North American operations, Menlo has advanced to being a true Tier 1 major market supply chain manager. Its growing domestic NLC operations have been a critical component to its global growth. With its Lean management focus, Menlo has been able to attract significant new business even in the current recessionary environment. Its Lean approach is making Menlo especially attractive to high-tech, industrial, automotive and healthcare vertical industry customers. Menlo Worldwide Logistics Expands its European Market Presence] Eersel and Rotterdam, Netherlands Site Visits July 10, 2009 [To view in full html format, follow this link:

Key Personnel: Bob Bassett, Vice President of Sales and Marketing Arthur van Gerven, Sr. Director of Business Development, Key Account Management and 4PL Services André de Jong, General Manager - Eersel Hein van Gastel, Logistics Manager ­ Eersel Philippe Angeline, Warehouse Manager ­ Rotterdam Menlo Worldwide Logistics Europe Overview Menlo Europe's 2008 revenues were approximately $80 million and its primary service offering includes both dedicated and multi-client warehousing and multi-modal transportation management. It has a staff of over 400 operating out of 14 Locations in seven European countries. The 14 locations include dedicated customer operations in: Germany, Belgium, Hungary, Ireland, and The Netherlands. Its total warehousing footprint is just over 60,000 square meters (SQM) with seven warehouses. It also manages two transportation management routing centers; one is in Eersel, Netherlands and one is in Budapest, Hungary. Menlo Europe's transportation management services include pan-European ground

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truckload, less than truckload (LTL), and last mile delivery services. Its key European customers are: 3Com, AMD, Blue Coat, Bobcat, Diebold, Lam Research, GE, MAQUET, NCR, New Era, Nike, Nike Golf, Powerwave, and Trimble. In a recent visit, we had the opportunity to tour one of Menlo's main European operations in Eersel, Netherlands and a smaller warehousing operation in Rotterdam. These are detailed below. Eersel Multi-Client Warehouse and Transportation Management Routing Center Menlo's Eersel warehouse started as an Emery operation in 1998 for Nike and in 2002 was migrated to Menlo. It is approximately 35,000 square meters and has four separate walled off subdivisions. The ceiling height is 10.6 meters, and Menlo added two 1,400 square meter mezzanine levels in 2007 in one of the warehouse sections to manage order fulfillment for Nike's online Internet store. Menlo is a global lead logistics provider (LLP) for Nike Store and Nike Golf. Today, Menlo's Eersel facility in total manages 35,000 SKUs, and processes over 500,000 orders per year for 12 different customers. Menlo is driving "Lean" management principles throughout its organization and Europe is no exception. Inbound warehouse receiving and outbound shipping planning boards are utilized and numerous quality and productivity measures are tracked each day. Its approach is bottom-up quality improvement focused, and Eersel's staff initiated 95 Kaizen (process improvement) events in 2008. The Eersel operation earned Menlo's Silver Lean level (which runs Bronze through Gold) in 2007. It is also ISO 9002 and TAPA certified. In approximately 3,200 SQM of warehouse subdivision "E", Powerwave network computer equipment is stored in racks. The equipment is received from manufacturing facilities in China and Estonia and Menlo fulfills European business-to-business orders of case and full pallet quantities. Menlo is using its proprietary SIMS warehouse management system (WMS) with interfaced radio frequency (RF) scanners to manage inventory and warehouse tasks for Powerwave. It is also managing all outbound ground and parcel transportation and performing some refurbishment and returns management work. The remainder of the E warehouse subdivision is occupied by Nike Golf storage racks and a multi station pick/pack line, as well as the Nike Store ( mezzanine operation. Both Nike Golf and Nike Store operations involve thousands of SKUs and order planners use Menlo's Provia WMS to drive cluster picking. Outbound orders are packed and shipped to retailers, consumers and individual stores. The operation's staffing runs from 60 to 120 people (depending on the season) working in single or double shifts, five days per week. Menlo began working with a Europe based global health care and home care equipment and devices provider in 2007. It manages approximately 9,000 SKUs of product in 10,000 SQM of warehouse subdivisions "A" and "B". Menlo processes approximately 400 orders per day destined to hospitals, extended care facilities, and service technicians. The operation has a staff of 50 and almost all of the items and products are picked and packed prior to shipping. The service scope from Menlo includes returns processing and also value added services. MAQUET, another Menlo customer in the health care industry, recently expanded its relationship with Menlo awarding it new warehousing and inbound and outbound transportation management business in Europe for its products manufactured in the United States. The new business will expand MAQUET's footprint in Eersel from its current 3,800 SQM operation to approximately 4,000 SQM in subdivision B. The Eersel facility will process over 10,000 outbound orders annually and perform all warehousing activities for some 350 separate products. The operation for this customer will include warehousing several thousand SKUs of finished goods such as ventilators and cardiovascular monitors and many lines of spare/service parts. Menlo will continue and grow its existing vendor managed inventory (VMI), kitting, and pick/pack operations and additionally the work scope will expand to include the transportation management of outbound orders to customers located in seven European countries. In a small 3,000 SQM section of warehouse subdivision "D", Menlo is performing light assembly work for Trimble. Trimble is a manufacturer of survey and global positioning equipment. Components used in the assembly are received for short-term storage in nearby racks. Menlo receives daily work orders for 16 different configurations of two types of survey equipment machines from Trimble. It then assembles the machines, tests them to ensure they function properly, and packs them into kits with designated parts and accessories. Provia is used to manage the warehouse and assembly processes and approximately 20 to 40 people are working in the operation in a given day depending on order demand. Approximately 100 orders are processed each day. Menlo is also performing some returns processing as part of the operation. The 3,000 SQM 3Com finished product warehousing and distribution operation in subdivision "D" was the last stop on our warehouse tour. Menlo receives products including routers, switches, and components such as power cords from 3Com's global suppliers. The inventory is putaway into rack storage. Approximately 80% of the products and components are VMI stock. As orders are received, product is picked and packed for shipping. Menlo is processing several thousand orders per year using its SIMS WMS. It is also processing returns and making software updates to products as value-added services. The final stop on the Eersel tour was the 10 person transportation management routing center operation. The center is managing panEuropean transportation for most of the warehousing customers. Modes handled include full truckload, LTL, small package, ocean and air. Rotterdam Multi-Client Warehousing Operations The Rotterdam warehouse is approximately 8,500 SQM and houses operations for Blue Coat Systems, CHEP and NCR. The facility is ISO 9001 certified, Menlo Lean Silver certified, and TAPA certified. It has an approximate staff of 35. The first operation we reviewed was for Blue Coat Systems. It develops computer network security and management systems for web communications and corresponding applications and began working with Menlo this year. The eight person, 250 SQM operation programs individual network "firewall" systems from 16 work stations. Once programmed, the units are tested, packaged, and shipped. Several hundred units are processed and shipped each week. Menlo processes approximately 15 orders for NCR point of sale (POS) retail equipment units per day. Menlo configures and programs each machine in a 15 person operation occupying approximately 1,200 SQM. The rest of the warehouse was dedicated to multiple clients and the Rotterdam CHEP pallet and container hub operation. Summary With expanding European, Asian, and North American operations, Menlo has advanced to being a true Tier-One major market supply chain manager. With its Lean management focus, Menlo has been able to attract significant new business even in the current recessionary environment. Its Lean approach is making Menlo especially attractive to high-tech and healthcare vertical industry customers. Menlo Worldwide Prospers in a "Lean" Environment [To view in full html format, follow this link:] Nashville, TN USA Campus Site Visits March 23, 2009

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Key Personnel: Gary Kowalski, Chief Operating Officer Bob Basset, Vice President of Sales and Marketing Anthony Oliverio, Senior Director of Operations Strategy Timothy Sroka, Lean Sensei Jonathan Coller, Facility Manager Jerome Wanke, Senior Logistics Manager Overview With 2008 revenues topping $1.5 billion and a global workforce of over 6,500, Menlo Worldwide Logistics is a leading U.S.-based third-party logistics provider (3PL). 2007 was a pinnacle year for Menlo. It made acquisitions of Shanghai, China based Chic Logistics and Cougar Logistics in Singapore to position Menlo as a major Asian-Pacific 3PL. In addition, Menlo was selected as the prime contractor for the U.S. Transportation Command's Defense Transportation Coordination Initiative. The contract was a major win for Menlo over strong competitors and is potentially worth $1.6 billion. Menlo provides customers 3PL and 4PL services, including dedicated and multi-client warehousing; domestic transportation management on four continents, managed international transportation services; as well as a variety of value-added services including: inventory management, light assembly, kitting, foreign trade zone (FTZ) services, labeling, manufacturing support, pick/pack operations, packaging, service parts management, and reverse logistics. Its key customers include: Canon, Cisco Systems, Diebold, Danfoss, Embraer, Ford, General Motors, Hewlett-Packard, IBM, Navistar International, NCR, Network Appliance, Nike, Nortel, Toyota, and the U.S. Department of Defense. Menlo has embraced the warehouse campus concept. It has transitioned from a customer-driven dedicated warehouse centric strategy to more flexible multi-client warehouse operations and now has more than 60% of its value-added warehousing operations in multi-client facilities. Campuses and multi-client arrangements allow for improved labor management efficiencies. Menlo Lean Management Process Menlo has also taken major steps to implement "Lean" management principals across its organization. "Lean" is a methodology that has grown out of major manufacturing companies and considers the expenditure of resources for any other goal than the creation of value for the end customer to be wasteful. Wastes are identified using a technique called Value Stream Mapping and once identified, are targeted for elimination through process improvements (also known as "Kaizen"). Menlo has grown its business using a project-by-project approach. Its overall strategy of standardizing Lean management process improvement principles across its organization and then deploying the requisite technology needed by each project fits well into this approach. It is a process driven operating and management style ­ enabled by appropriate IT applications ­ versus an IT driven operating environment. Lean warehouse standardization is intended to: institutionalize lean principles and techniques at the floor level where the work is performed, engage and empower hourly staff to make decisions and eliminate waste. It also focuses on increasing training effectiveness, improving productivity and operational throughput, reducing the total cycle time for new project start ups, and in-turn drives increased customer satisfaction levels. Each Menlo logistics project starts with an analysis of the current state of operations. Then an improved future state, represented by a Value Stream Map, is developed as an operational goal. The current state is then analyzed and wasteful activities are eliminated to drive toward the future state Value Stream Map. Shikumi diagrams and process flow charting techniques are used to model the improvements. Once the operational processes are optimized, standard work instructions are developed for each individual work process. As operations are deployed and mature, Menlo staff provide valuable input and feedback driving process improvements. In a Lean operating environment, Kaizen events are used to target process improvement areas. Menlo separates its Kaizen events into two types. "Process Kaizen" events focus on rapid process improvements on the logistics execution side to reduce waste and inefficiencies. "Flow Kaizen" events focus on larger network value-stream process improvements. Examples of Process Kaizen events include: increasing percentages of on-time deliveries, shortening order to fill lead-times, and reducing required inventory levels in a warehouse. Flow Kaizen event examples include: coordinating transportation moves between customers to build round-trip truckload moves and expanding the number of warehouse network campus operations to provide flexible workforces to meet customer needs. In 2008, Menlo estimates it has saved over $8 million through its Lean improvement activities which are detailed below. Menlo's Lean Results Kaizen Events Assoc. Trained Bronze Certifications Silver Certifications Lean Savings 2005 75 80 1 0 $1.59M 2006 216 220 1 0 $2.27M 2007 378 1607 28 4 $5.75M 2008 463 1325 12 9 $8.13M

As process improvements are made, Menlo tracks operational performance through multiple metrics and ongoing customer satisfaction surveys. Menlo provides individual Lean training to its employees and has implemented Bronze, Silver, Gold, and Platinum certification levels based upon specific rating criteria for its warehouse operations. Nashville Warehouse Site Visit Menlo has been operating in Nashville for over eight years. A primary customer for Menlo is one of the world's largest copier and office systems manufacturer's, for whom Menlo provides finished goods distribution and transportation management. The first service Menlo performed for this customer was a modeling exercise designed to optimize its U.S. distribution network. The result of this analysis, which Menlo then implemented, was to reduce the customer's overall costs and maintain its customer service levels by rationalizing the domestic network to three distribution centers from eight. After redesigning the network, Menlo began managing all three value-added warehousing operations. Its daily warehousing and distribution services include inventory management, processing orders for copiers, printers, and associated accessories and parts, returns processing, and transportation routing. In its Nashville, TN campus, Menlo operates a 256,000 square foot dedicated warehouse. The operation employs 48 people and runs in two shifts. Over 14,500 stock keeping units (SKUs) of products, accessories and parts are maintained in on-hand inventory and approximately 665 outbound orders are processed each day. Orders are shipped to over 2,000 end customers. The operation recently received Menlo's Silver Lean

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Management Certification and participated in 12 Kaizen events in 2008. As part of the Lean operation, standard work instructions (SWIs) have been developed for all warehouse tasks such as slotting, picking, and replenishment. Warehouse picking is performed to meet carrier pick-up "cut" times. To support the operation, Menlo has deployed its Provia warehouse management system (WMS). Menlo receives orders every hour from its customer into the WMS for picking. The WMS is fully integrated with radio frequency (RF) devices for coordinated putaway, picking, and overall inventory management. From Menlo's Lean process improvements, the facility has reduced labor cost per unit by 18% and has realized a 20% improvement in units processed per hour. Summary Through its Lean focus, Menlo is attracting new business and making significant process improvement gains that are reducing its customers' costs of doing business. Menlo seems to have found a very good business model in targeting high-tech, consumer and retail, heavy industrial, and manufacturing industry customers and developing strategic relationships. As Menlo continues its international expansion, we anticipate that it will leverage its domestic Lean approach in efficiently managing complex global supply chains. Readers' Choice Top 10 3PL Excellence Awards 2010 #3 Menlo Worldwide WHY THEY WON: Menlo has set out to consistently improve its customers' supply chain performance while driving down total landed costs. The company has also made strides in the 4PL arena, designing and deploying optimized supply chain networks. "Over the past year, we refined and improved our lean capabilities to help customers drive out waste and inefficiency in their supply chains," says Menlo President Bob Bianco. According to IL readers, the San Mateo, Calif.-based 3PL's efforts are paying off. "Menlo provides full commitment to our global logistics needs," says one reader. Another remarks, "They are an industry leader, responsive to their customers, innovative in their approach, and committed to delivering quality service." Ed Melching, director of global logistics at Warrenville, Ill.-based truck manufacturer Navistar Inc. agrees. "Our business relationship with Menlo is intensely collaborative," says Melching. "We've greatly benefited from the relationship and today we are invested in a new culture, management philosophy, and metrics-based approach to defining success and achieving common goals." CASE STUDY: Navistar In 2008, Navistar's supply chain operations spanned three siloed business units, creating inefficiencies that did not support its larger business strategy. Following in-depth research and analysis, the company established and rolled out a five-year plan to fundamentally transform its supply chain, elevate its logistics capabilities, and reduce overall logistics spend by 25 percent by 2013. As its lead logistics provider, Menlo Worldwide Logistics served as the change agent Navistar needed, and began working with Navistar under a unique strategic collaboration model. Today Menlo, Navistar, and its key suppliers have aligned with this vision and strategy, launched 19 projects that have or will yield validated annual cost savings in the millions of dollars, and generated a five-percent reduction in annual logistics costs. "With the strategic collaboration model and Menlo's deep expertise in transformative logistics, resources, and best practices, Navistar's supply chain has become a competitive asset that is continually improving and helping to accelerate our growth strategies," says Melching. Leading Lingerie Manufacturer Partners with Menlo Worldwide in the UK Triumph International UK Limited has agreed the transfer of its Swindon located warehouse activities to global logistics operator Menlo Worldwide Logistics Swindon, UK and Amsterdam, Netherlands - June 23, 2010 - As part of Triumph's initiative designed to restructure and improve the competitiveness of its overall UK business, an agreement has been signed with Menlo Worldwide Logistics (Menlo), effective 1st July 2010. The international logistics operator, part of the diversified freight transport company, Con-way Inc. (NYSE: CNW), will take over warehouse operations at the lingerie company's Swindon, purpose-built site. Menlo, which is seeking to grow its business in the region, intends to operate the currently dedicated warehouse as a multi-user facility in the future. Menlo, which in addition to a full range of warehousing functions, offers transport management services, web fulfillment and 4PL services, is committed to targeting new customers for the Swindon premises. Situated at the hub of the UK's economically vibrant `M4 Corridor' the site provides a strategic location for regional, national and international distribution networks. The UK is a core market for the global Triumph International lingerie business, which operates in 120 countries, has a history dating back 124 years and is one of the world's leading underwear producers with brands such as sloggi®, HOM® and Valisere®, in addition to Triumph®. To ensure Triumph UK remains competitive and to support the business plan for growth, the decision to outsource the warehouse operations is the most viable option for the UK business and its long-standing employees. Commenting on the agreement with Menlo, Triumph UK's General Manager, Petri Haikola said, "Focusing on sales and marketing operations is the best long-term decision for the UK business and its employees. As such we looked for a trusted and experienced logistics provider to take over our warehouse business under the Transfer of Undertakings/Protection of Employment (TUPE) regulations. It was vital to us that our partner would ensure that the 118 warehouse employees would retain their employment and provide job security for the foreseeable future. We are pleased that in Menlo, we have found just such a partner, with which to work closely." Tony Gunn, Menlo's Managing Director, Europe, welcomed the new partnership with Triumph. "At Menlo we are serious in our response to customer business requirements. Our core values are people oriented and our culture is one of innovation. These assets have helped us in providing Triumph with an effective solution in Swindon," Gunn noted. "We look forward to leveraging our resources, in-depth logistics experience and knowledge; our commitment to a lean and process-driven approach, and our reputation for operational excellence in support of Triumph's objectives," added Gunn. "In Swindon we see a win-win situation, a positive solution for Triumph and business growth for Menlo based on delivering consistent performance, service improvement and waste elimination. " For both parties investment is proof of the commitment they have to the Swindon site and the UK market. Triumph's business initiative also

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[Inbound Logistics, July 2010]

includes considerable investment in IT infrastructure and marketing. Its UK operations will be updated with a new IT system facilitating improved corporate processes across the UK and within the global organization. Additional investments in local sales and marketing activities will support the Triumph Inspiration Award, an international young designer's competition to be hosted in London during September 2010. For its part Menlo, as a logistics service provider with a global network, investment in the UK and in Europe as whole, provides local and regional customers with single-source supply chain management expertise and illustrates the company's long-term commitment to best in class, dedicated and multi-user warehouse and transportation management services, as well as a burgeoning 4PL capability. Navistar promotes Menlo's role to 4PL [Transport Intelligence, March 26, 2010]

US automotive manufacturer Navistar, Inc. has announced it has extended the role of Menlo Worldwide Logistics, LLC, contracting with the company to provide an expanded range of 4PL analysis, design and management services in support of Navistar's 5-year plan to re-engineer and improve performance in its supply chain. In this larger "network manager" role, Menlo will work with Navistar to deploy an advanced "strategic collaboration model" for continuous supply chain improvement globally. Utilizing this model, the companies are redesigning Navistar's structure, processes and practices for global logistics, transportation and supply chain management. Navistar's objective is to achieve a 25% reduction in supply chain spend by 2013, while establishing the team and advanced management skills to drive continuous improvement into Navistar's operations going forward. Navistar originally selected Menlo in 2008 as its non-North America lead logistics provider. That award marked the launch of a major effort to identify cost reductions throughout Navistar's global supply chain while improving lead time planning and net landed cost modeling. "Our goal is to build a world-class logistics capability that drives value and helps us better serve our customers on a continuous basis," noted Ed Melching, Navistar director of global logistics. "We made great strides in the past 18 months. Probably the biggest is we proved to ourselves, Navistar and Menlo, that the concept of strategic collaboration really works. Vision, strategy and process all came together. We've formalized the approach and restructured our team into a blend of Menlo expert resources and Navistar experience. The opportunities to build on these initial successes are exciting." Going forward, the Navistar/Menlo team will be implementing additional transformation projects based on its five-year vision and strategic plan. Specific focus areas will include distribution network analysis and planning, sourcing and contract management, network execution, invoicing and payment of freight charges, and performance and compliance monitoring. Goals are based on SMART (Specific, Measurable, Achievable, Relevant, Time-related) targets and measurement against validated key performance indicators. By embracing its "strategic collaboration model," the Navistar/Menlo team anticipates it will continue to drive results and maintain its momentum toward achieving their five-year vision in 2013.

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