SOURCE: Con-way Freight

Con-way Freight

January 19, 2010 09:12 ET

Con-way Freight Improves Service to Customers by Cutting Transit Times to 460 U.S. Destinations

Initiative Will Reduce Re-Handling, Maximize Efficiency and Lower Fuel Consumption

ANN ARBOR, MI--(Marketwire - January 19, 2010) - Con-way Freight, a less-than-truckload (LTL) carrier and subsidiary of Con-way Inc. (NYSE: CNW), today launched a major network re-engineering that will cut transit times by one day to 460 U.S. destinations, while decreasing the company's carbon footprint. The initiative will also lead to reduced re-handling and fewer service exceptions, improved on-time delivery and a more efficient operation. Major lanes affected include those between Southern Texas and the Northeast, Chicago and Southern Florida, and Chicago and Southern Texas.

"At Con-way Freight, we're always looking for ways to improve service performance for our customers and lessen our impact on the environment. Now, advanced technology has enabled us to continuously evaluate ways to move freight more efficiently and directly from origin to destination, reducing miles, handling and fuel consumption along the way," said Greg Lehmkuhl, executive vice president of operations, Con-way Freight. "This network re-engineering will reduce transit times for our customers, while helping them control inventory, manage supply chain costs and ultimately get product to market faster."

Since the launch of an enterprisewide sustainability initiative in early 2008 by parent company Con-way Inc., Con-way Freight has been continually identifying and adopting practices and technologies to improve service and operating efficiency while reducing carbon emissions. Today's network re-engineering initiative improves density over the shortest, most direct routes and will allow Con-way Freight to reduce total operating miles per year by 16.6 million. The move will enable the company to conserve a projected 2.6 million gallons of diesel fuel annually, eliminating approximately 58.6 million pounds of carbon emissions from the environment, which is equal to removing more than 5,200 automobiles from America's highways.

Previously, Con-way Freight implemented several other operating refinements which have led to sustainability benefits. In early 2008, the company turned back the engine speed governors of its trucking fleet from 65 to 62 mph. This action reduced diesel fuel consumption by nearly 3.2 million gallons annually while removing approximately 71 million pounds of carbon emissions from the environment -- the equivalent to taking some 6,400 automobiles off the nation's roads.

Additionally, an earlier network re-engineering initiative implemented in late 2008 achieved operating efficiencies and service and sustainability benefits, reducing total miles driven annually by more than 31 million. The reduced miles equated to a reduction in carbon emissions of more than 100 million pounds, which would equate to the removal of more than 9,900 cars from the U.S. road system.

To create the network re-engineering announced today, a cross-functional team used advanced simulation modeling technologies and business intelligence tools to pinpoint opportunities to maximize service performance, efficiency and asset utilization. In the Northeast to Southern Texas lanes, for example, the team engineered network changes to yield a 20 percent reduction in handling and a decrease in transit times from four to three days, a 25 percent improvement.

"The changes made possible through our predictive modeling technology are part of a long-term approach to continuous improvement and optimized network design that maximizes the use of our existing infrastructure," said Lehmkuhl. "We've been a proven and stable carrier for customers for more than 25 years now, and today's re-engineering will help us continue that tradition and our mission to provide the best LTL service in the marketplace. Our sustainability efforts are real, too. To be able to say we've taken steps to reduce our carbon footprint equivalent to removing more than 21,000 automobiles from the road is an added benefit to the core business advantages."

For the past three years, Con-way Freight has continued a strategic evolution, implementing several major strategies aimed at improving service performance, enhancing shareholder value and strengthening its industry competitiveness. In addition to network improvements, they include changing to a unified operating model after consolidation of its regional management structure and the adoption of the Lean Six Sigma quality management system for systemwide process improvement.

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About Con-way Freight

Con-way Freight is the industry's leading less-than-truckload (LTL) freight transportation company, providing guaranteed, day-definite regional and transcontinental service with exception-free delivery, on-time service performance and faster transit times through a single, unified network of more than 300 service centers in the United States, Canada, Mexico and Puerto Rico. Con-way Freight offers LTL freight transportation across North America and through Global LTL™ delivery in the United States from around the world. Global solutions include international less-than-container (LCL) ocean shipments from Asia through its OceanGuaranteed® service; expedited U.S. delivery for inbound international cargoes from Europe through an exclusive alliance with TNT; direct service to more than 30 Bahamian and Caribbean ports through TropicalDirect(SM); and domestic offshore transportation to Alaska, Hawaii and Puerto Rico. Based in Ann Arbor, Mich., Con-way Freight is a certified FAST highway carrier and is ISO 9001- and 14001-, C-TPAT/PIP, ACE- and CSA-certified.

Con-way Freight is a subsidiary of Con-way Inc. (NYSE: CNW), a $4.3 billion diversified freight transportation and logistics services company. For more information, visit www.con-way.com/en/freight.

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