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Menlo Logistics selected by Hewlett-Packard to operate major distribution center; Menlo to utilize Real-Time Warehouse Management System to operate HP's largest distribution facility worldwide.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--March 27, 1997--Menlo Logistics, a full-service contract logistics company, has been selected by leading technology manufacturer Hewlett-Packard Company (HP) to manage its largest distribution center in the world.

The 800,000-square-foot product completion and North American distribution center, located near Sacramento in Woodland, will store and distribute HP's popular printing products using light assembly, cross-docking and pick-and-pack methods. HP will consolidate the operations of three Bay Area distribution centers here, accepting inbound components from domestic and Far East manufacturing sites and sending outbound products throughout North America.

Scheduled to open in June 1997, the warehouse will feature Menlo's state-of-the-art systems, including the Real-Time Warehouse Management System and Total Transportation Management System.

"We look forward to continuing and expanding a business relationship with Menlo Logistics to include the operation of this new facility and believe Menlo will be a key partner in helping us efficiently run this major, leading-edge facility," said Bart Kingham, operations manager for HP's Inkjet Product Completion and Distribution division.

"Menlo has enjoyed a successful partnership with HP since 1992 and we're excited to be working with them on their largest distribution venture to date," said John Williford, president and chief executive officer of Menlo Logistics.

Currently, Menlo Logistics is working on more than 20 projects for HP at 15 locations, providing management services for warehousing and distribution, transportation and supply chains.

"This new warehouse contract is an extension of the total supply chain management support Menlo provides Hewlett-Packard," added Williford. "As this partnership deepens, Menlo will continue to draw on its growing logistics experience and resources to develop the most creative, efficient solutions in this business for Hewlett-Packard."

Menlo's Total Transportation Management System will reduce inventory and boost HP's warehouse efficiencies by identifying a select core group of carriers to ensure the most reasonable rates and best service for packaged, less-than-truckload, full truckload and air freight in the United States.

Additionally, Menlo will use its proprietary Real-Time Warehouse Management System, which deploys computers mounted on forklifts and radio-frequency controlled bar-code scanners. The Real-Time Warehouse Management System replaces conventional warehousing methods by maximizing inventory accuracy and instantly prioritizing and processing the movement of product inside the warehouse.

Hewlett-Packard Company is a leading global manufacturer of computing, communications and measurement products and services recognized for excellence in quality and support. Hewlett-Packard has 112,800 employees and revenue of $38.4 billion in its 1996 fiscal year. Information about HP and its products can be found on the World Wide Web at .

Menlo Logistics, a full-service contract logistics company, uses advanced management systems to cost-effectively integrate and simplify complex logistics operations, including transportation, storage and distribution, shipment tracking and invoicing throughout the supply chain from raw material to consumer. Other clients include IBM, Imation, Sears, Zenith, Coca-Cola, Dow Chemical, Frito-Lay, Reader's Digest, Time Warner and Frigidaire.

Menlo Logistics is a subsidiary of CNF Transportation Inc., a $4 billion, diversified freight transportation company, based in Palo Alto, Calif., and with operations in more than 95 countries. Information about Menlo Logistics and additional press releases can be found on the Internet at . -0-

NOTE: Photo available upon request.

CONTACT: Mark Nelson, 415/494-2900
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Publication:Business Wire
Date:Mar 27, 1997
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