U.S. Department of Defense Exercises Menlo’s Option, Cites Cost Avoidance, Strategic Performance Improvements to CONUS Distribution Network
SAN MATEO, Calif. – March 08, 2011
Menlo Worldwide Logistics, the global logistics subsidiary of Con-way Inc. (NYSE: CNW), announced today that the U.S. Army’s Military Surface Deployment and Distribution Command (SDDC) has awarded two contract modifications to Menlo Worldwide Government Services, LLC. The actions renew Menlo as prime contractor for the U.S. Defense Transportation Coordination Initiative (DTCI) and further expand the scope of its contract by adding 19 additional Department of Defense (DOD) shipper sites to the DTCI program.
Menlo was selected as prime contractor in August 2007 for a base three-year period with four one-year renewal options. Menlo was awarded the first renewal year and the expanded scope based on its performance over the initial three-year contract, during which Menlo and its subcontractors introduced sophisticated logistics practices and technologies which significantly reduced costs, improved process efficiency and increased on-time delivery of supplies for the nation’s military services.
DTCI is a strategic logistics program directed by the U.S. Army’s Military Surface Deployment and Distribution Command (SDDC). Menlo Worldwide Government Services, LLC is prime contractor with Computer Sciences Corp. (CSC), ONE Networks Enterprises, Inc. and Olgoonik Logistics as principal subcontractors. As DTCI’s prime contractor, Menlo operates an integrated logistics solution for shipment planning, optimization, shipment execution and overall transportation management for material shipments moving into and among DOD facilities in the 48 contiguous United States.
During the base period, Menlo designed and implemented a program that synchronized transportation operations from some 96 independent DOD shipping sites in the United States and utilizing hundreds of transportation service providers. In addition to dedicated load planning, route management and customer service teams, Menlo created specific “strike teams” to identify tactical improvement opportunities, then devised and implemented solutions to further improve operational efficiency and effectiveness. During the base contract period, the company exceeded key performance indicators and cost avoidance goals with DTCI to-date realizing approximately $158 million in gross cost avoidance.
In comments last summer before the U.S. Senate’s Committee on Homeland Security and Governmental Affairs, Alan F. Estevez, Principal Deputy Assistant Secretary of Defense, Logistics and Materiel Readiness, said:
“Through DTCI, DOD is outsourcing the day-to-day management of its domestic freight to a world-class third-party logistics provider. In this new business model, the 3PL provider receives shipment requirements, identifies consolidation opportunities, prepares shipment plans for delivery, arranges for transportation providers, and performs carrier quality assurance functions. USTRANSCOM, in its role as the DOD Distribution Process Owner (DPO), designated DTCI as one of the DPO top 10 initiatives. DTCI has produced measurable improvements and is bringing about increased cost savings and better efficiency in shipping operations.”
“It’s an honor to be able to bring our expertise to bear in ways that enable our nation’s warfighters to be better prepared with the right supplies on time at the right time to accomplish their missions,” said Robert L. Bianco Jr., president, Menlo Worldwide Logistics and a former U.S. Army officer. “We are proud to have earned the opportunity to continue our work as DTCI’s prime contractor.”
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About Menlo Worldwide Logistics
Menlo Worldwide Logistics, LLC, is a US$1.4 billion global provider of logistics, transportation management and supply chain services with operations in five continents, including North America. As a third-party logistics provider, San Mateo, Calif.-based Menlo Worldwide Logistics’ services range from dedicated contract logistics to warehouse and distribution management, transportation management, supply chain reengineering and other value-added services including packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client and dedicated facilities. With more than 16 million square feet of dedicated warehouse space in North America, the Asia Pacific, Europe and Latin America, and industry-leading technologies, Menlo Worldwide Logistics creates effective, integrated solutions for the transportation and distribution needs of leading businesses around the world.
Menlo Worldwide Logistics, LLC, is a subsidiary of Ann Arbor, Mich.-based Con-way Inc. (NYSE: CNW), a $5.0 billion diversified freight transportation and logistics company. For more information, please visit us on the Web at www.con-way.com.
Kemp Goldberg Partners