Global logistics: Menlo expands presence in Singapore

Menlo Worldwide Logistics LLC, a third-party logistics (3PL) subsidiary of freight transportation services provider Con-way Inc. recently announced it has broke ground on a new 40,000 square-foot distribution management center in Singapore in an effort to expand its presence there.

Company officials said that this facility compliments and expands Menlo’s current service offerings in Singapore, which are comprised of logistics, warehousing, inventory and transportation management, distribution, fulfillment, light manufacturing and supply chain design, and engineering services for local and global shippers. They added that this four-story facility will be one of its seven Singapore-based facilities that serve various industries, including: aerospace, retail consumer electronics and apparels, automotive, wine and spirits, chemical and industrial products.

Desmond Chan, managing director, South Asia for Menlo, told LM that given the robust economic growth surge since the recovery of the 2008-09 financial crisis, Menlo’s customers’ volumes have increased significantly in Singapore and the Asia region, explaining that Singapore’s GDP growth over last 2 years was more than 20 percent—one of the world fastest growing economies. And he added that the plan for this increase is primarily to cater to increased customer volume and business needs that started in late 2009.

“The biggest benefit [of this new facility] is to allow our customers to grow their business and support their peak season surges to meet the end consumers demand,” said Chan. “With retail customers within a single 400k square-foot facility, storage space, resources and equipment could be shared and leveraged for each of the customer’s peaks in volume, thereby reducing under-utilized capacity during some of the low peak season periods. This will help to drive service efficiency, efficient operation and capacity flexibility for the customers.”

This new facility will function as Menlo’s main location in Singapore for storage and distribution, high-velocity picking and packing operations, customized labeling, and return management services, coupled with the ability to enable customers to share and leverage existing IT platforms, an experienced management and labor infrastructure, automated product and freight-handling equipment and warehouse management assets, 150 employees working out of this facility.

Chan said this facility will serve 5-to-6 major customers in the retail and consumer sector including 10-15 multi-industry customers. And in terms of benefits this new facility provides Menlo, he said it is well situated to major seaport and airport transportation gateways and is less than 10 km from connecting highways into Malaysia and to reach Indo China.

“Menlo’s decision to establish a regional retail distribution centre in Singapore is a testament to Singapore’s position as a leading supply chain management hub in Asia for consumer and retail business,” said Kelvin Wong, executive director of logistics and professional services, Singapore Economic Development Board, in a statement. “The centre will add to the suite of specialized logistics capabilities in Singapore, and allow consumer and retail companies to better manage their supply chain in Asia.”