Buying by Vector

Buying by Vector

Copyright 2004, Traffic World, Inc.

Menlo Worldwide is pooling maritime expertise across its three companies - and their combined buying power - into a single unit, the Vector Menlo Shipper''s Association.

Shippers won''t be members of the VMSA, which will be a management unit Menlo says was "created to develop innovative solutions to managing purchased transportation from ocean carriers." The real weight will come from the customers of the sprawling forwarding and logistics business of Menlo Worldwide Forwarding and Menlo Worldwide Logistics and the fourth-party logistics of Vector SCM.

"VMSA''s engineering capabilities will be instrumental in using the footprint of existing and potential business to bring to carriers volumes that will complement the carriers'' own needs for balancing equipment and capacity," Menlo said in a statement.

Menlo says VMSA will go beyond mere volume-pooling, providing value-added services such as supply-chain security assessment, contract management, strategic planning and network modeling. Other forwarders have sought to combine their capacity purchasing expertise, notably Swiss forwarder Panalpina with its Air-Sea Broker unit.