In the January 2011 edition of Inbound Logistics, Navistar's Ed Melching, Director of Global Logistics discusses their supply chain transformation and selection of Menlo as their 3PL partner.
In 2008, after undergoing a grueling third-party logistics provider (3PL) selection process, Navistar chose San Mateo, Calif.-based Menlo Worldwide Logistics, the global supply chain management subsidiary of Con-way Inc., to support it in improving its global logistics network, including managing global transportation providers and regional warehouses, planning lead times, and modeling net landed costs.
He reports that one of their goals was a 25% reduction in supply chain costs. He reports that at "the end of the partnership’s second year, we will have achieved 11-percent cost savings, out of the 25-percent goal we set for the next five years."
When discussing the reasons Navistar selected Menlo, he mentioned their "global coverage, cross-network planning, and optimization capabilities."
This is a very interesting article discussing the challenges of building a new global supply chain from the ground up. It is also interesting that modeling net landed cost and optimization capabilities were mentioned as key factors in the transformation of the supply chain. This mirrors some other findings that leading supply chains are relying on optimization-based technology to help drive improvements.