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INTERFACES
Vol. 34, No. 1, January-February 2004, pp. 26-38
DOI: 10.1287/inte.1030.0056
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Menlo Worldwide Forwarding Optimizes Its Network Routing

Robert C. Prior, Rob L. Slavens, Jerry Trimarco, Vedat Akgun, Edward G. Feitzinger, Chyi-Fu Hong

Menlo Worldwide Forwarding, One Emery Plaza, Vandalia, Ohio 45377
Menlo Worldwide Forwarding, One Emery Plaza, Vandalia, Ohio 45377
Menlo Worldwide Forwarding, One Emery Plaza, Vandalia, Ohio 45377
Menlo Worldwide Technologies, 2055 NW Savier Street, Adtech 11-2, Portland, Oregon 97209
Menlo Worldwide Technologies, 2055 NW Savier Street, Adtech 11-2, Portland, Oregon 97209
Menlo Worldwide Technologies, 2055 NW Savier Street, Adtech 11-2, Portland, Oregon 97209
prior.robert{at}menloworldwide.com
slavens.rob{at}menloworldwide.com
trimarco.jerry{at}menloworldwide.com
akgun.vedat{at}menloworldwide.com
feitzinger.edward{at}menloworldwide.com
hong.chyifu{at}menloworldwide.com

Since 2000, Menlo Worldwide Forwarding (formerly Emery Worldwide) has faced a particularly challenging business environment that has been exacerbated by a weakened economy, the events of September 11, and a decreasing demand for airfreight. To meet these challenges, the company and Menlo Worldwide Technologies developed a network-routing-optimization model to optimize Menlo Worldwide Forwarding$s North American transportation network. The project team and senior managers have repeatedly identified and applied low cost solutions to meet the changing and complex network-routing requirements. By maximizing its use of network capacity, the company has increased profitability and reduced operating costs while maintaining high service levels. In 2002 alone, Menlo Worldwide Forwarding reduced operating costs by 21 percent, increased operating margin by 41 percent, and improved financial results by $80 million in the North American aircraft transportation operation. Moreover, management used the optimization model to facilitate Menlo$s transition from a heavily asset-based, integrated airfreight company to an asset-light, freight-forwarding business. This created a flexible operating environment and a competitive advantage for future operations.

Key Words: transportation: models; network; industries: transportation; shipping



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