Menlo Worldwide Logistics Launches Program for Bayer MaterialScience to Improve U.S. Transportation Operations

SAN MATEO, Calif., and PITTSBURGH .-Menlo Worldwide Logistics, LLC, the third-party logistics (3PL) subsidiary of Con-way Inc. (NYSE: CNW), has launched an integrated transportation planning, optimization and management program for Bayer MaterialScience, LLC (BMS) designed to improve performance and variablize costs for the NAFTA transportation operations.

Under the contract, Menlo is teaming with the BMS NAFTA Supply Chain Center’s logistics group to implement a strategic re-engineering program. As program manager for transportation operations, Menlo assumes a key role supporting a comprehensive logistics and warehouse optimization effort by BMS intended to bring new efficiencies, cost variablization and improved service to the company’s supply chain.

Menlo’s role includes planning and management of outbound transportation across BMS’ various modes, including rail, air, bulk truck, truckload (TL), less-than-truckload (LTL) and barge, as well as support for equipment tracking and visibility, freight payment and audit. BMS will retain responsibility for procurement of equipment and carrier contracts.

In December 2008, Menlo went live with its operating platform for all LTL and Truckload shipments. Bulk truck, bulk rail and barge shipment responsibilities were transitioned in January to Menlo, which now supports shipment planning, routing and management for BMS’ facilities in Newark, Ohio; South Charleston and New Martinsville, W.Va.; Channelview and Baytown, Texas; and Columbus, Ga. As part of the transformation initiative, Menlo also is integrating its Logistics Management System (LMS) with BMS’ SAP platform to enable visibility within BMS’ enterprise resource planning and management system to provide enhanced shipments status, as well as performance metrics for transportation operations.

“We are very pleased to be able to leverage the resources and best practices of Menlo Worldwide Logistics, one of the largest providers of transportation planning and operations management services,” said Tim Tyler, director, Logistics Operations and Distribution Safety, Bayer MaterialScience. “Their experience and extensive operations expertise will bring best-in-class processes to BMS, while using a variable cost model which supports our competitive improvement strategy in today’s rapidly changing competitive environment.”

Added Dr. Haakan Jonsson, vice president and Head of the Supply Chain Center, “This is a highly strategic engagement for our logistics and transportation organization. It brings new capabilities to our team that add value — improved service levels and variablized costs — and enables us to leverage and focus on the strengths we consider to be our core competencies"

Menlo brings extensive experience in transportation planning, optimization and network management to BMS. The company currently manages nearly $1 billion in freight spend for its customers, representing more than three million shipments per year across a large customer base that includes numerous clients in the chemical and industrial sector.

Menlo was selected based on the strength of its platform and capabilities for complex transportation management operations, its relevant experience, demonstrated results with Lean practices and methodologies to reduce waste and increase efficiency, and its approach to structured implementation and solid performance with its transportation management solution.

Menlo Worldwide Logistics President Robert L. Bianco, Jr. commented, “Menlo has a consistent record of working effectively and collaboratively with our customers and their key stakeholders in a focused effort to add value to logistics functions. We’re proud to welcome Bayer MaterialScience among our top ten transportation customers and we look forward to many opportunities to providing great value for BMS and its customers.”