Con-Way Moves and Expands

Con-Way Transportation Services, one of the fastest growing and most profitable freight carriers in the country, moved its corporate headquarters to Ann Arbor, Mich., and launched a new business to provide logistics services.

The move from Palo Alto, Calif., is aimed at improving communications with customers and allowing easier travel for executives and office staff, company officials said.

Con-Way already operated two companies in Ann Arbor: regional less-than-truckload carrier Con-Way Central Express and expedited carrier Con-Way NOW.

Its other companies are regional LTL fleets Con-Way Western Express and Con-Way Southern Express, based in Buena Park, Calif., and Fort Worth, Texas, respectively; and Con-Way Truckload Services, also in Fort Worth.



Thirty-one people will be based in the new corporate office in Ann Arbor, which, the company pointed out, is within one time zone of 92% of its customers and 84% of its service centers.

Separately, Con-Way launched Con-Way Integrated Services to provide single-source supply chain management services, including warehousing, inventory control and multimodal transportation.

he new company will operate multiclient warehouses in northern New Jersey, Chicago and Los Angeles initially, with electronic links to Con-Way’s network of 400 service and freight assembly centers and to other carriers.

It will use a variety of communications technologies, including electronic data interchange, the Internet, e-mail, fax and phone systems to help shippers track and manage shipments through a nationwide “shared network.”

Con-Way President Gerald Detter called the creation of the logistics services unit “the most innovative and exciting development at our company since Con-Way itself was formed 15 years ago.”

Con-Way Transportation posted revenue of $1.7 billion in 1997.

The logistics unit was developed over the past three years, and Con-Way said its services will be different from anything else on the market — including those offered by other subsidiaries of Con-Way’s parent, CNF Transportation.

CNF’s other logistics subsidiaries are Menlo Logistics, which provides customized integrated solutions for large, complex projects; and Emery Global Logistics, a unit of Emery Worldwide, which offers assembly, warehousing and distribution services.

Con-Way Integrated essentially combines warehousing and transportation management with assembly and distribution work and adds a layer of information technology that enables shippers to see their inventory in transit regardless of who is handling the product.

“What’s different is a tool kit of services, technologies and distribution networks preconfigured for our targeted clients,” said Michael S. Bare, vice president and general manager. “This portfolio allows us to appeal to a larger cross-section of shippers with our semicustomized solutions.”

Con-Way said it has three target markets for its new logistics services. The first is small and midsize companies looking to match the capabilities of larger companies. The second is larger companies that may need to supplement their existing networks. The third is non-U.S.-based companies seeking to penetrate the North American market.

Mr. Bare joined Con-Way in 1984 as an account manager for Con-Way Central Express in Akron, Ohio. Since 1993, he has been western region manager in Des Plaines, Ill., overseeing the Chicago area operations.