Menlo Promotes 4PL Flexibility as Solution to Supply Chain Resilience
1. Menlo Promotes 4PL Flexibility as Solution to Supply Chain
Resilience
SAN FRANCISCO and AMSTERDAM, June 17, 2014 /PRNewswire/-- A resilient supply chain is the
fundamental goal of the majority of enterprises throughout the world. Increased complexity, the
pressure to become both more efficient and environmentally friendly, as well as the geographical
distances involved in such supply chains all contribute to a greater risk of disruption. Clearly,
solutions need to become increasingly innovative to meet the challenge.
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Arthur van Gerven from the global logistics service provider, Menlo Logistics, was recently invited to
join professors of logistics and other leading authorities from around Europe to address the issue
and present Menlo's view on how solutions can be created. The TRA 2014 Conference, of which Van
Gerven's session formed a part, was organized by the LOG4GREEN* cooperation. This initiative aims
at awareness raising and strengthening the competitiveness in Europe's logistics sector.
Van Gerven started from the premise that 4PL or lead logistics provision benefits supply chain
resilience by avoiding the causes of disruption or by better adapting to its consequences. "The over-
sight provided by a 4PL operator will improve performance in four criteria, which are key to the
resilience of any supply chain," explained van Gerven. "The model provides flexibility to achieve
rapid reaction to circumstances; predictability in order to maximize optimization and both cost and
carbon efficiency, which promote business and environmental sustainability."
Out-sourcing to a 3PL service provider goes some way to managing the results of supply chain
disruption whether created by a major disaster capable of paralyzing a complete production process
or more minor localized events such as traffic congestion or labor disputes. However, a 4PL
approach, over-seeing all out-sourced logistics suppliers allows for the identification also of more
systematic, process-driven inefficiencies. A good 4PL is capable of designing solutions to reinforce
any complex supply chain.
Menlo's approach, as described by van Gerven in the real-life context of a retail sportswear
customer, revolves around the technique of Value Stream Mapping. This is part of the Lean
methodology and has as its primary goals the elimination of waste and creating a road map for
continuous improvement.
As a result of employing this philosophy, resilience is built into the supply chain performance.
Measurement of asset leverage and process efficiency as well as emission target achievement is
continuous and the ability to resist disruption is constantly reviewed. Disaster recovery and
contingency planning can then also take place with the confidence that a robust yet flexible supply
chain is already in operation.
In concluding, van Gerven also underlined a further benefit of the 4PL's adaptability. "Resilience is
also enhanced by the ability of shippers and their 4PL's to collaborate in reducing supply chain
waste and emissions and therefore improve sustainability through the joint utilization of assets and
sharing of resources. This is a vital consideration in the future success of minimizing supply chain
disruption," he said.
2. *http://www.log4green.eu
About Menlo Logistics EuropeIn Europe, Menlo Logistics maintains seventeen dedicated and multi-
client logistics centres located in the Netherlands, Belgium, Czech Republic, Germany and the
United Kingdom. This warehouse network can serve as pan-European distribution solution using one
or several facilities. Supply chain and transport management solutions as well as 3PL, warehousing
and distribution services are offered to a variety of vertical industry sectors including: fashion and
apparel; healthcare and medical equipment; hi-tech electronic; oil and gas and data network
equipment; automotive; defense and government services and retail e-fulfillment. The European
headquarters is at the multi-client Amsterdam Distribution Centre in the Netherlands.
www.menloworldwide.com/europe
Follow Menlo on Twitter: https://twitter.com/MenloLogistics
About Menlo LogisticsMenlo Logistics, LLC, is a US$1.6 billion global provider of logistics,
transportation management and supply chain services with operations in five continents, including
North America. As a third-party logistics provider, San Francisco, California-based Menlo Logistics'
services range from dedicated contract logistics to warehouse and distribution management,
transportation management, supply chain reengineering and other value-added services including
packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client
and dedicated facilities.
With nearly 20 million square feet of dedicated warehouse space in North America, the Asia Pacific,
Europe and Latin America, and industry-leading technologies, Menlo Logistics creates effective,
integrated solutions for the transportation and distribution needs of leading businesses around the
world. Menlo Logistics, LLC, is a subsidiary of Con-way Inc. , a $5.5 billion diversified freight
transportation and logistics company.
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Photo: http://photos.prnewswire.com/prnh/20130313/MM76898LOGO Menlo Logistics