Danfoss selects Menlo subsidiary to oversee Singapore CDC

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Cougar Express Logistics, a wholly owned subsidiary of Menlo Worldwide, announced Monday, Nov. 26, that it has been appointed by Danfoss Group to establish, deploy and serve as its Asia-Pacific Central Distribution Center warehouse operator in Singapore. The Danfoss CDC in Singapore will serve as an Asia-Pacific warehousing and distribution hub for its worldwide suppliers and customers throughout the Asia-Pacific region.

Under the new contract, Cougar will relocate Danfoss’ existing warehouse operations to a larger facility within Singapore that can cater to Danfoss’ regional growth. This occasion also earmarks an expansion of Cougar’s operational sites in Singapore with a new multi-client facility located at 21 Pandan Avenue, which officially opened Monday. The new site offers a total of 93,000 square feet, of which Danfoss will occupy about 30 percent in order to handle nearly 13,000 stock keeping units.

Cougar will provide Danfoss with an integrated package of logistics management services that includes inbound receipt, inspection, inventory management, storage, order processing and logistics coordination for Danfoss’ industrial products. Cougar will continue to use its “flexibility-reliability” concept for Danfoss by providing productivity improvements, efficient layout design, process mapping and cost analysis, while incorporating quality standards within each phase of the implementation and ongoing operation. The flexibility-reliability concept is written into the new contract, and its main focus is to proactively ensure that both Cougar and Danfoss can overcome peaks and seasonality on demand. The concept also will enable both parties to monitor staff capabilities and performance on a regular basis.

“We need a strong platform to execute our deliveries to our customers in APAC, therefore I am satisfied to continue our cooperation with Cougar, as Cougar over time has proven its dedication to our business,” says Torben Christensen, vice president of Danfoss’ Global Logistics Service organization. “Looking into the future, we are, of course, curious to see what Menlo can add in to this cooperation. During the last three to four years ,we have invited Menlo to participate in some of our global freight tenders. But until now we had not succeeded to close a contract with them, so we didn’t know the company that well. The new contract is also a starting point for us to learn more about Menlo.”

“Good cooperation and dedicated team effort on improvement and stabilization has resulted in major benefits to Danfoss,” says Jesper Lohmann, regional logistics service manager for Danfoss in Singapore. This includes a 50 percent lead-time reduction in the warehouse services and daily status report, making it possible to proactively eliminate problems. In the end, this also has helped Danfoss to increase the delivery service to its customers.

“Danfoss is one of Denmark’s most respected and recognized global brands for industrial components and motion controls,” says Todd Johnson, vice president for international operations of San Mateo, Calif.-based Menlo Worldwide. “We are honored to play a significant role in Danfoss’ logistics expansion plan for the Asia-Pacific region. We continuously seek greater synergies that will benefit and add value to our customers’ supply chains, and we fully expect this to be achieved within the Danfoss warehouse operations in Singapore.”

Heinz-Peter Faust, chief executive officer of Cougar and regional managing director for South Asia for Menlo Worldwide, says the business win denotes a key expansion in Cougar’s business relationship with Danfoss Industries. “We are pleased that Danfoss extends their continued support and trust with us,” Faust says. “This award is significant for us to continue our service with a respected, successful global enterprise to support and coordinate their Asia-Pacific logistics needs.”

Faust believes that both Cougar’s core competence and Menlo’s process-based approach to improvement further attest the team’s commitment and service excellence for customers. “This award is a momentous acknowledgement, an apparent testimony of our efforts, service excellence and capabilities for operating and managing Danfoss warehouse operations since 2005, and supports our Asia expansion strategy going forward.”