What the Doctor Ordered

Dr. Pepper/Seven Up, four other customers sign up to use Menlo Logistics

Redwood City, CA  October 8, 2001  When Dr Pepper went looking for technology to integrate its order- and transportation-management systems with its enterprise resource planning (ERP) system, it wrote itself a prescription for a dose of Menlo Logistics.

Dr Pepper/Seven Up was just one of four recent customers wins that Menlo announced today. The other wins included logistics services agreements with HALO Branded Solutions, Nortel Networks, Takata and a networking technology company that has declined to be identified.

Menlo reported that the collective revenue from these agreements is expected to exceed $100 million annually for Menlo, along with significant logistics savings and efficiencies for the new customers. Each agreement has a multi-year term.

For Dr Pepper/Seven Up, Menlo is integrating the technologies of its order management system (OMS) and transportation management system (TMS) with the beverage company's SAP ERP system to better automate Dr Pepper/Seven Up's supply chain and to provide Web-based tracking and tracing of inbound and outbound products.

In the first phase of this agreement, Menlo expects to annually move about 25 million pounds of inbound raw material and about 145 million pounds of outbound syrups and concentrates through the beverage company's St. Louis manufacturing facility. The facility makes soft drink syrups and concentrates for approximately 340 franchised North American bottlers, which then mix these concentrates into beverages. A variety of over-the-road transportation options, such as dry van, tankers, LTL and truckload, are integrated into the logistics process, and all this activity is visible in real time.

HALO Branded Solutions is a B2B marketer of promotional products, customizing those products with a client's brand name or logo. For HALO, Menlo is managing two recently consolidated distribution centers (DCs). Because each branded product for each of HALO's many clients requires a different stock keeping unit (SKU), Menlo manages over 2000 SKUs at each DC. Multiple SKUs are generally picked and shipped in a single carton, and shipping is usually same-day. Both B2B and B2C delivery channels are used.

Nortel serves carrier, service provider and enterprise customers with optical, wireless, local, personal Internet and e-business solutions. For Nortel, Menlo is using its OMS and warehouse management system (WMS) to further enhance the success of Nortel's ongoing "fast flow fulfillment" initiative. Additionally, Menlo has opened and is managing Nortel's primary DC for North America, a new 233,000 square foot facility near Nashville, Tenn.

Takata is a worldwide manufacturer of automotive safety systems. Menlo has integrated the technology of its TMS with Takata's ERP system to increase operational efficiencies and provide Web-based tracking and tracing of material flows to and from Takata's manufacturing facilities and DCs in North America. Both ground and air are used as transportation modes. Menlo has established a call center near San Antonio, Texas, to coordinate operations for Takata. Most of Takata's North American manufacturing facilities are in Mexico.

Menlo Logistics is a subsidiary of CNF, a $6 billion management company of global supply chain services with businesses in regional trucking, air freight, ocean freight, customs brokerage, global logistics management and trailer manufacturing. CNF is based in Palo Alto, Calif.

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