Turning Network Routing into Advantage for Menlo Worldwide Forwarding

The Problem

Menlo Worldwide Forwarding is a global heavyweight cargo shipping company for business, industry, and governments that moves millions of pounds of freight every day. The company had been incurring losses while facing strong competition. It sought to improve its North American transportation operations and transform itself from an asset-intensive to an asset-light freight forwarding business. Achieving these goals required analytics expertise in complex routing and strategic planning.

The Analytics Solution

Menlo worked with its analytics and tech division, Menlo Worldwide Technologies, to create the Forwarding Network Optimization System. Emphasizing people, processes, and technology, the project team developed a decision-modeling tool to optimize the logistics network and routing plans, maximize utilization of the company's integrated aircraft and truck networks, and increase the flexibility of routing plans to accommodate the dynamic and complex requirements of the shipment network.

The Value

Using model results to maximize network utilization, Menlo Worldwide Forwarding dramatically reduced its operating costs and the time needed to plan its routing network. The company increased its network capacity utilization by 30% and reduced its operating cost by 21%. Moreover, Menlo Worldwide Forwarding used the optimization model to facilitate its transition from an asset-intensive airfreight transportation company to an asset-light freight forwarding business. This created a more flexible operating environment and provided a competitive advantage for future operations.