New Con-Way business targets smaller companies

By Staff -- Logistics Management, 11/1/1998

Until now, most of the benefits of third-party logistics services have been enjoyed by large companies.

Con-Way Transportation Services hopes to change that with the formation of a new division that will offer third-party logistics services to smaller clients. The new company, announced by Con-Way Transportation Services President Gerald Detter last month, will be called Con-Way Integrated Services, or CIS. CIS will provide third-party logistics and supply chain services from multi-client warehouses that it plans to establish around the United States.

The first facilities will be located near Chicago, Los Angeles, and in northern New Jersey. Others will be added as the client base grows. Randal R. Mutschler, director of operations, expects the company eventually will operate about 20 facilities.

The new company is headquartered in Chicago, where it will operate CIS's Supply Chain Management Center. The center will coordinate the use of various technologies, provide a systemwide view of operations, and serve as a single point of contact for clients. CIS expects to use the Con-Way family of carriers for much of its transportation requirements. (The Con-Way carriers include three regional less-than-truckload carriers, an expedited-services carrier, and a full truckload carrier.) In addition, it is forming alliances with supply chain software firms to bring what it calls semi-customized solutions to its customers.

Detter says that CIS was launched to meet customers' demands for integrated supply chain services. CIS also expects to offer other value-added services such as network design, inventory management, light assembly, pick-and-pack, kitting, and packaging.

In addition to targeting small and mid-size companies, CIF expects to offer services to large companies that want to supplement existing distribution networks and non-U.S. companies seeking entry into North America.

Con-Way executives say the new company will supplement, and not compete with, the services offered by other CNF third-party logistics providers Menlo Logistics and Emery Global Logistics.