Con-way Signs Contracts With Navistar, TNT
By Jonathan S. Reiskin, Associate News Editor
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Two operating companies of Con-way Inc. announced significant deals in late March. Logistics provider Menlo Worldwide has deepened its work for truck maker Navistar Inc., and less-than-truckload carrier Con-way Freight has added a service for TNT N.V.’s U.S.-European shipping.
Menlo, San Mateo, Calif., said it will function as Navistar’s lead logistics provider, sometimes known as a 4PL, as part of the truck maker’s five-year plan to re-engineer and improve its supply chain. Since 2008, Menlo has been Navistar’s lead logistics provider outside of North America.
Navistar, Warrenville, Ill., manufactures International trucks and MaxxForce engines.
“We made great strides in the past 18 months,” said Ed Melching, Navistar director of global logistics. “We’ve formalized the approach and restructured our team into a blend of Menlo expert resources and Navistar experience. The opportunities to build on these initial successes are exciting,” he said in the March 25 statement announcing the deal.
Menlo has done large-scale, vehicle-manufacturing work before, providing 4PL services for General Motors Co. in a joint venture with GM called Vector SCM. Vector lasted from 2001 through 2006, when the automaker exercised its option to buy out Menlo’s share in the venture.
During its five-year plan, Navistar said, it wants to reduce its global logistics spending by 25%. Elements of the plan include a core carrier program to cut domestic freight costs by 20% while improving transit reliability, to redesign the transportation network and to launch a new information technology strategy.
In the TNT deal, Con-way will participate in a U.S. export service to Europe for heavy freight. The two companies started working together in April 2009, they said in a March 29 statement.
Express parcel courier TNT is based in the Netherlands, where it is also the postal service.
Con-way, Ann Arbor, Mich., will handle the pickup and consolidation of U.S. shipments and get them to New York’s John F. Kennedy International Airport. The air freight will go from Kennedy to Belgium’s Liege Airport, where TNT will perform customs clearance and distribution, with a day-definite delivery option.
The two companies started their work with a U.S. import service.
“With this expansion of our Global LTL suite of services, shippers will again benefit from a dependable solution that will enable them to reduce costs, shorten lead times and speed product to market,” said Con-way Freight President John Labrie.
