SAN MATEO, Calif., Aug. 17 /PRNewswire-FirstCall/ -- Menlo Worldwide, the third-party logistics services provider of Con-way Inc. , confirmed today that its subsidiary Menlo Worldwide Government Services, LLC was selected as prime contractor for the Defense Transportation Coordination Initiative (DTCI). DTCI is a strategic logistics program directed by the Department of Defense U.S. Transportation Command (USTRANSCOM) to streamline and improve domestic transportation and distribution operations supporting warfighters at all four branches of the U.S. military.
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Under the contract, which is potentially worth $1.6 billion, Menlo will be responsible for deploying and operating an integrated logistics solution for shipment planning, optimization, shipment execution and overall transportation resource management governing all Department of Defense (DOD) materiel shipments moving into and among DOD facilities in the 48 contiguous United States.
"DTCI is a team effort, in partnership with the Defense Logistics Agency and the military services, to increase the effectiveness and efficiency of DOD freight movements in the continental United States," said Air Force Gen. Norton A. Schwartz, commander, USTRANSCOM. "Menlo will utilize best commercial practices to enable load consolidation and optimization, use of more efficient intermodal means of transportation and tailored scheduling to meet the customer requirements. These improvements will increase the precision and reliability of freight movements, leading to increased customer confidence, cost savings, and increased efficiency in our CONUS shipping operations."
The DTCI is focused on improving performance while injecting new efficiencies into the military's domestic transportation network by better synchronizing up to 260 independent shipping sites and hundreds of transportation service providers.
"In addition to the efficiencies and expected cost savings we'll gain," said Air Force Col. James Lovell, director, DTCI Program Management Office, "this long-term partnership with Menlo Worldwide Government Services allows us to implement several commercial best practices into our transportation operations."
"DLA and USTRANSCOM have worked closely on the Defense Transportation Coordination Initiative for several years. This award represents a significant accomplishment in our collective efforts to streamline distribution processes and provide better and more cost-effective support to our nation's warfighters. DLA looks forward to executing the first phase of the initiative," said Army Lt. Gen. Robert Dail, DLA director.
"This is a milestone win for Menlo and our partners," said Robert L. Bianco, Jr., president, Menlo Worldwide. "USTRANSCOM is to be commended for their foresight, vision and commitment to a best-in-class solution for improving distribution and logistics for our nation's warfighters. This is a tremendous opportunity to leverage and apply our experience with some of the nation's largest commercial businesses into a highly efficient logistics solution for the military. We look forward to a successful, long-term partnership with USTRANSCOM, DLA and the DOD that delivers new efficiencies and superior performance for our military's domestic transportation operations."
Benefits of the new program are expected to include increased operational efficiencies and cost savings, as well as better visibility of freight movements. The improved visibility will enable predictability that will enhance planning of other modes of transportation so DOD can better meet end-customer (warfighter) expectations of delivery.
Menlo Worldwide is prime contractor for DTCI in partnership with the following principal subcontractors:
-- Computer Sciences Corp. (CSC), which will provide IT infrastructure
hosting, network management and integration services;
-- ONE Networks Enterprises, Inc., which will provide the transportation
management software for shipment planning, optimization and execution,
and;
-- Olgoonik Logistics, which will provide professional services
supporting the participation of minority-owned and small business
firms as service contractors for DTCI.
"I want to congratulate the Menlo team and their partners on an outstanding win," said Douglas W. Stotlar, president and CEO of Menlo's parent company Con-way Inc. "The entire Con-way organization stands behind you as we welcome USTRANSCOM, DLA and all DOD participants as our customers and embark on an exciting new chapter for our enterprise."
To view the news release issued today by USTRANSCOM, go to this web site: http://dtci.transcom.mil/
About Menlo Worldwide
Menlo Worldwide, LLC, is a global provider of logistics, transportation management and supply chain services with operations in North America and 20 countries. As a third-party logistics provider, San Mateo, Calif.-based Menlo Worldwide's services range from dedicated contract logistics to warehouse and distribution management, transportation management, supply chain re-engineering and other value-added services including packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client and dedicated facilities. With more than 13 million square feet of dedicated warehouse space in North America, the Asia Pacific, Europe and Latin America, and industry-leading technologies, Menlo creates effective, integrated solutions for the transportation and distribution needs of leading businesses around the world.
Menlo Worldwide, LLC, is a subsidiary of Con-way Inc. , a $4.2 billion freight transportation and logistics company and FORTUNE magazine's "Most Admired Company" in transportation and logistics for 2007. For more information please visit us on the web at http://www.menloworldwide.com/.
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