3PL news: Menlo rolls out multi-client network warehouse services

Jeff Berman, Senior Editor -- Logistics Management, 2/13/2008

SAN MATEO, Calif.—Menlo Worldwide Logistics LLC, a third-party logistics (3PL) subsidiary of Con-way, said this week it has rolled out a multi-client network of logistics and warehouse services in an effort to provide shippers with flexible, scalable, and customizable warehouse services.

This network is comprised of six facilities in Atlanta, Dallas, Aurora, Ill., Cranbury, N.J., Fontana, Calif., and Portland, Ore., according to Menlo. It added that it also has multi-client network facilities in Mexico, Canada, Asia, and Europe.

This rollout was originally based on a pilot program Menlo did two years ago in Fremont, Calif. Faith Ross, Menlo director of multi-client operations, told LM that the idea originated with Menlo customers via an annual customer satisfaction survey. And the concept of a shared, multi-client warehouse service was broached. 

“We implemented a pilot program based on this initial request, and it proved to be very successful,” said Ross.  “What the pilot proved out for us was a model that, in addition to leveraging the space, also could ‘share’ other resources, such as more standardized IT systems, management talent, labor and industry expertise.   It's a model that's arrived with customers, who like the flexibility and predictable cost we can bring to the table.”

The Fremont facility pilot started with six customers, said Ross. And it now provides services for 15 separate customers. 

Along with the success of the pilot, Ross explained that increasing interest from customers, coupled with changes in market opportunities as shippers began to look more creatively at outsourcing functions in the supply chain, helped spur this rollout.  

Menlo said this endeavor will provide shippers of all sizes with the ability to outsource various levels of warehousing, distribution, and transportation management operations and processes through its IT platform and a global network of facilities. As for some of the types of benefits it will provide shippers, Menlo cited things like: access to its supply chain services portfolio, which includes transportation management, network optimization, and distribution planning, among others; real-time visibility of inventory and order management; value-added options for transportation operations, including dedicated doors and available yard space for dropping trailers; and close proximity to major East and West Coast ports and inland rail intermodal hubs to handle imported goods and products.

“Large manufacturing, industrial and retail products companies always will need dedicated warehouse operations,” said Ross. “But given how supply chains expand, contract and change today, many [shippers] want more flexible options—and they don't want the burden of managing a changing warehouse network.  Menlo already has the network in place.  It's ideally suited to a market today where it is not uncommon for a manufacturer or retailer to have to deal with huge seasonal surges in their products.”

Ross added that Menlo’s approach with the multi-client model gives shippers operations in cities across the U.S. to flex their distribution network up and down as product flow dictates. 

“That's the leverage the multi-client approach provides. And it allows customers to manage this with the most cost-effective investment in a shared warehouse infrastructure,” Ross said.