Menlo Worldwide Builds on its Chinese Foundation
Shanghai, China
July 18, 2005
By
Evan Armstrong

Key Personnel:
Collin Lim, General Manager North Asia
Antonio Kang, Business Development Manager
Oliver Han, Operations Manager

In a recent visit to Shanghai we had the opportunity to review Menlo Worldwide’s China operations. Menlo Worldwide has over 40 years of experience in China. In 1962 it established a Hong Kong office and in 1999 Menlo Worldwide established a wholly-owned subsidiary Shanghai–Menlo Worldwide Logistics (Shanghai) Company Ltd. Recently, Menlo Worldwide established another wholly-owned subsidiary Menlo Worldwide Warehousing Co., Ltd providing non-bonded warehousing and value added logistics services.

Today, Menlo Worldwide has two main supply chain offices in mainland China: Hong Kong and Shanghai. These offices provide regional engineering, business development, information technology and finance & administrative support services to Menlo Worldwide’s operations.

Menlo Worldwide’s China service offering includes: value-added warehouse management, domestic and international transportation management, vendor managed inventory (VMI), light assembly, customs brokerage, tax & duty handling, foreign trade zone, bonded warehousing and financial services.

Menlo Worldwide has approximately 140 employees in mainland China supporting nine operations. The logistics operations are located as follows:

1. Shanghai (Wai Gao Qiao)

a. Multi-Client Logistics Center

b. Two Dedicated Logistics Centers

2. Hongqiao (Shanghai)

a. Multi-Client Logistics Center

3. Shenzhen

a. One Dedicated Logistics Center

4. Kunshan

a. One Dedicated Logistics Center

5. Hong Kong

a. Multi-Client Logistics Center

Some of the facilities are TAPA (Technology Asset Protection Association) certified while all of its other facilities are benchmarked after TAPA “Level A” certification requirements and Menlo Worldwide’s Shanghai operations are also ISO9001 certified.

Menlo Worldwide’s P.R. of China locations are shown as orange rectangles on the map below; blue circles are partner facilities.

Menlo’s New Multi-User warehouse in Hong Kong is shown below.

Many of Menlo’s China facilities have been TAPA (Technology Asset Protection Association) certified and its other facilities have been designed based upon the TAPA “Level A” certification requirements. Additionally, Menlo’s Shanghai operations are ISO9001 certified.

Menlo’s P.R. of China locations are shown in red on the map below. Purple circles represent partner facilities and the red triangles represent Menlo’s two main regional supply chain offices.

Menlo Worldwide P.R. of China Company and Partner Locations

Menlo Worldwide’s logistics customers in China include many multinational corporations (MNC’s) in the automotive, high tech and industrial sectors.

Menlo WQG (Wai Gao Qiao) Multi-Client Logistics Center

The Menlo WQG (Wai Gao Qiao) Multi-User Logistics Center is a 26,400 square foot secure bonded warehouse operating in the Waigaoqiao Free Trade Zone outside of Shanghai.

Its main customer is IR-Bobcat Company. Menlo builds kits to order, handles customs clearance and distributes parts to Bobcat’s manufacturing plant in Wuxi City. At any given time 3-4,000 SKU’s are warehoused for Bobcat and its kits contain approximately 800-1,000 parts used in manufacturing excavators and steel loaders. The quality of this operation mirrors many of those we have seen in the U.S.

Menlo WQG (Wai Gao Qiao) Lean Logistics Center

Menlo Worldwide operates a dedicated warehouse for an automotive customer. It is also located in the Waigaoqiao Free Trade Zone. Menlo Worldwide maintains over 20,000 SKUs of spare parts for domestic Chinese distribution to over 100 dealers via truck, air and rail. Over 5,000 order lines are picked and packed each month and Menlo Worldwide performs the customs clearance. This secure warehouse has 64,584 square feet (6,000 m2). Menlo Worldwide has 38 employees staffing this modern facility and operates in a “lean” environment with detailed performance measurement and significant quality improvement processes.

As part of the operation there are two order teams. The Inbound Order Team handles inventory replenishment and import paperwork. The Outbound Order Team enters orders from the customer’s Chinese dealers, generates warehouse pick tickets and processes customs clearance paperwork. Each team is managing orders directly through the customer’s SAP Enterprise Resource Planning (ERP) system.

In summary, Menlo Worldwide has taken its operational expertise and incorporated it well into the mainland China market. We would anticipate Menlo Worldwide to continue to grow and build upon its operational foundation as the import/export and domestic China markets continue to rapidly expand.

 

Sources: A&A Primary Research, https://www.xpo.com

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