Press Releases

Diebold Expanding Relationship with Menlo Worldwide Logistics

Menlo tapped as "lead logistics provider" for Diebold's global supply chain transformation; will reinforce "Lean" concepts to supply chain operations, optimize Diebold's global warehouse network, and continue transportation management services

SAN MATEO, Calif. and CANTON, Ohio - Apr. 29, 2008 - Menlo Worldwide Logistics, the global logistics subsidiary of Con-way Inc. (NYSE: CNW), today announced that it is expanding its relationship with Diebold, Incorporated (NYSE: DBD) by serving as the company's principal worldwide logistics management provider.

Menlo Worldwide Logistics, the global logistics subsidiary of Con-way Inc. (NYSE: CNW), today announced that it is expanding its relationship with Diebold, Incorporated (NYSE: DBD) by serving as the company's principal worldwide logistics management provider. 

Under the expanded role, Menlo will operate in a "lead logistics provider" capacity, assuming responsibility for projects, workstreams, operating plans and management of service providers executing logistics functions, with the goal of further streamlining Diebold's global supply chain, reducing logistics costs and improving product velocity and deliverability.

Menlo's expanded responsibilities will focus on warehouse network rationalization and optimization, and implementation of processes to identify and reduce waste and inefficiency.  Diebold originally contracted with Menlo in 2005 to provide transportation management services.

"Menlo has worked diligently to ensure that our needs and those of improving service to our customers remain the central focus of our relationship," said George S. Mayes, Jr., Diebold senior vice president, global manufacturing and supply chain. "We have been pleased with Menlo's solutions to our early objectives for better cost control and service consistency in our primary logistics and transportation operations. We look forward to continuing this close relationship, and leveraging Menlo's expanded role into further benefits that improve supply chain speed and efficiency, while ultimately lowering our costs and increasing our competitive advantage."

The expanded work scope calls for Menlo to work with Diebold's executive supply chain management team to further examine and recommend improvements to Diebold's global logistics infrastructure, particularly its network of warehousing and fulfillment operations, initially in North America and Europe. As lead logistics provider, Menlo will help Diebold redesign its global logistics footprint by analyzing material and information flows, physical network layout and capacity needs, and then recommending new solutions and designs to streamline functional execution, operations and service.

In addition to its lead logistics provider role, Menlo will continue to provide third-party logistics (3PL) services, managing three warehouses for Diebold in the United States as well as its primary European distribution operations in Hungary at Diebold's manufacturing plant in Budapest.

Like many successful multinational manufacturing companies, Diebold has adopted a global strategy of employing best-of-breed logistics expertise from key providers, while focusing internal resources on core competencies of designing, manufacturing and marketing its industry-leading products. Diebold's work with Menlo has enabled the company to strategically re-engineer portions of its supply chain to derive better cost visibility and performance.

The initial scope involved Menlo working as a 3PL to drive transformation of transportation management practices to gain cost efficiencies and service improvements. Services included transportation procurement, contract management, supply chain design and technology systems implementation, network optimization, carrier management, process control, cost analysis, project management and reporting.

The expanded role will encompass a continuation of previous work scopes while incorporating global transportation and warehouse network optimization, additional systems design, process re-engineering on a more global basis, and implementation of Lean methodologies throughout the supply chain. 

"Diebold has certainly demonstrated a keen vision of the advantages that can be gained from strategic outsourcing and leveraging third party logistics expertise," said Robert L. Bianco, Jr., president, Menlo Worldwide.  "We are extremely pleased to have this opportunity to continue working with Diebold in this expanded role as lead logistics provider. We're ready to take it to the next level. "

Diebold, Incorporated is a global leader in providing integrated self-service delivery and security systems and services. Diebold employs more than 17,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA.  Diebold is publicly traded on the New York Stock Exchange under the symbol ‘DBD.'  For more information, visit the company's Web site at www.diebold.com.

About Menlo Worldwide Logistics
Menlo Worldwide Logistics, LLC, is a global provider of logistics, transportation management and supply chain services with operations in five continents, including North America. As a third-party logistics provider, San Mateo, Calif.-based Menlo Worldwide Logistics' services range from dedicated contract logistics to warehouse and distribution management, transportation management, supply chain reengineering and other value-added services including packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client and dedicated facilities. With more than 16 million square feet of dedicated warehouse space in North America, the Asia Pacific, Europe and Latin America, and industry-leading technologies, Menlo Worldwide Logistics creates effective, integrated solutions for the transportation and distribution needs of leading businesses around the world.

Menlo Worldwide Logistics, LLC, is a subsidiary of Con-way Inc. (NYSE: CNW), a $4.7 billion freight transportation and logistics company and FORTUNE magazine's "Most Admired Company" in transportation and logistics for 2007. For more information, please visit us on the web at http://www.con-way.com/.