CNF Inc., Palo Alto, Calif., is combining its Menlo Logistics, Emery Worldwide and Vector SCM operations to form Menlo Worldwide.

By giving customers a full range of logistics services from a single source, Menlo Worldwide is better positioned to capitalize on the growth of the global supply chain management market than any of the entities on their own, said Gregory L. Quesnel, president and CEO of CNF.
Menlo Worldwide will have combined annual revenue of $3 billion, 15,000 employees and more than 200 service centers and operations facilities. Headquarters for Menlo Worldwide will be Redwood City, Calif. Vector SCM headquarters will remain in Novi, Mich.
John H. Williford, formerly CEO of Menlo Logistics, will head the newly combined companies as president and CEO of Menlo Worldwide. Chutta Ratnathicam, currently CEO of Emery, will return to his former position as chief financial officer of CNF.
"There is a clear trend among companies -- from middle market to giant multinationals -- to outsource the management of increasingly complex supply chains and logistics services in order to lower costs, reduce inventories, and increase speed, flexibility and efficiency," said Quesnel.
"We'll be able to help customers supply factories, distribute products, source supplies and manage their inventories faster, more efficiently, and at lower cost than ever before. By combining the strengths already within CNF, we have created a global logistics, transportation and forwarding provider that we believe is better integrated and more clearly focused than any other company serving this market."
Emery, newly aligned as a division of Menlo Worldwide, will continue to provide full network service and coverage for its North American overnight and deferred services by utilizing a fleet of contract air carriers, as it has done since mid-August. CNF also announced that its airline subsidiary, Emery Worldwide Airlines, would not resume operations. The airline has not been flying since Aug. 13.
Quesnel said that the formation of Menlo Worldwide effectively restructured the CNF portfolio of companies into two basic operating companies, Con-Way Transportation Services and Menlo Worldwide.
Menlo Worldwide is organized into four divisions: Emery, which consists of Emery's international air and ocean forwarding, North American airfreight, customs brokerage and expedited services; Menlo Worldwide Logistics, combines the global logistics activities of Emery with Menlo Logistics to provide large and mid-size global clients with third-party logistics services; Vector SCM, a division of Menlo Worldwide and a joint venture with General Motors that manages GM's worldwide distribution system, will be a model for developing other "fourth-party" logistics business; and Menlo Worldwide Technologies, a provider of information technology, supply chain engineering skills and consulting services.