Businessweek

Con-way Inc. provides transportation, logistics, and supply-chain management services for a range of manufacturing, industrial, and retail customers. The company’s business units operate in regional and transcontinental less-than-truckload (LTL) and full-truckload freight transportation, contract logistics and supply-chain management, multimodal freight brokerage, and trailer manufacturing. Segments The company operates through four segments: Freight, Logistics, Truckload, and Other. Freight This segment consists of the operating results of the Con-way Freight business unit. Con-way Freight is a LTL motor carrier that utilizes a network of freight service centers to provide day-definite regional, inter-regional and transcontinental LTL freight services throughout North America. LTL carriers transport shipments from multiple shippers utilizing a network of freight service centers combined with a fleet of linehaul and pickup-and-delivery tractors and trailers. Freight is picked up from customers and consolidated for shipment at the originating service center. Freight is consolidated for transportation to the destination service centers or other intermediate service centers (referred to as freight assembly centers). At freight assembly centers, freight from various service centers could be reconsolidated for transportation to other freight assembly centers or destination service centers. From the destination service center, the freight is delivered to the customer. LTL shipments weigh between 100 and 15,000 pounds. In 2012, Con-way Freight’s average weight per shipment was 1,326 pounds. Logistics This segment consists of the operating results of the Menlo Worldwide Logistics business unit. Menlo Worldwide Logistics develops contract-logistics solutions, which could include managing complex distribution networks, and providing supply-chain engineering and consulting, and multimodal freight brokerage services. Menlo Worldwide Logistics’ supply-chain management offerings are primarily related to transportation-management and contract-warehousing services. Transportation management refers to the management of asset-based carriers and third-party transportation providers for customers’ inbound and outbound supply-chain needs through the use of logistics management systems to consolidate, book, and track shipments. Contract warehousing refers to the optimization and operation of warehouses for customers using technology and warehouse-management systems to reduce inventory carrying costs and supply-chain cycle times. For various customers, contract-warehousing operations include light assembly or kitting operations. Menlo Worldwide Logistics provides its services using a customer- or project-based approach when the supply-chain solution requires customer-specific transportation management, single-client warehouses, and/or single-customer technological solutions. Menlo Worldwide Logistics also utilizes a shared-resource, process-based approach that utilizes a centralized transportation-management group, multi-client warehouses, and technology to provide scalable solutions to multiple customers. Truckload This segment consists of the operating results of the Con-way Truckload business unit. Con-way Truckload is a full-truckload motor carrier that utilizes a fleet of tractors and trailers to provide short- and long-haul, asset-based transportation services throughout North America. Con-way Truckload provides dry-van transportation services to manufacturing, industrial, and retail customers while using single drivers, as well as two-person driver teams through long-haul routes, with each trailer containing only one customer’s goods. On average, Con-way Truckload transports shipments approximately 800 miles from origin to destination. Under its regional service offering, Con-way Truckload transports truckload shipments between 100 and 600 miles, including local-area service for truckload shipments of approximately 100 miles. Con-way Truckload offers ‘through-trailer’ service into and out of Mexico through all major gateways in Texas, Arizona, and California. This service involves equipment-interchange operations with various Mexican motor carriers. For a shipment with an origin or destination in Mexico, Con-way Truckload provides transportation for the domestic portion of the freight move, and a Mexican carrier provides the pick-up, linehaul and delivery services within Mexico. Other This segment consists of the operating results of Road Systems, a trailer manufacturer. Road Systems primarily manufactures and refurbishes trailers for Con-way Freight and Con-way Truckload. Seasonality In the Freight segment, the months of September, October, and November have the highest business levels while the months of December, January, and February have the lowest business levels. In the Truckload segment, the months of September and October have the highest business levels while the months of December and February have the lowest business levels. Regulation The company is subject to compliance with various cargo-security and transportation regulations issued by the Department of Homeland Security, including regulation by the Transportation Security Administration and the Bureau of Customs and Border Protection. History Con-way Inc. was founded in 1929. The company was incorporated in Delaware in 1958.