Case 4-2 Ocean Spray Cranberries
Case study 4-2
1)What rationale is offered by Ocean Spray in support of the idea of using a 3PL? Do you agree with the reasons cited for the interest in 3PL?
Ocean Spray Cranberries, Inc. offered several reasons for using a 3PL for their transportation and logistics area. They looked at the transportation within the logistics chain and realized there was a lot of variability in this area. The company decided that it wants to centralize and bring all of it’s transportation logistics into uniformity while expanding into new markets. They also feel that they should focus on their core competency, “maintaining our leadership in the shelf-stable juice drink category.” In order to maintain their core competency and centralize their transportation, they looked into the cost of expanding the transportation further and how long it would take. The company has now decided a 3PL would be a valuable asset to the company. I agree with this decision. The company is looking to overhaul their transportation but feel this is not the area in which they excel. They will be able to maintain their focus on their core competency while allowing a 3PL to revamp the transportation logistics if they go through with this idea.
2)Based on your understanding of Ocean Spray its business needs, what type of 3PL firm do you fell might be of greatest potential value in terms of a relationship?
I feel that Ocean Spray should look into a transportation based 3PL provider. This will allow Ocean Spray to develop more organized transportation operations while still allowing them to focus on their core competency. A transportation based 3PL will be able to emphasize the transportation based assets of Ocean Spray and offer the company further logistics help.
3) What steps would you suggest be considered by Ocean Spray as it begins to analyze the feasibility of forming a relationship with individual 3PL providers?
Ocean Spray should use the following steps while considering forming
1)What rationale is offered by Ocean Spray in support of the idea of using a 3PL? Do you agree with the reasons cited for the interest in 3PL?
Ocean Spray Cranberries, Inc. offered several reasons for using a 3PL for their transportation and logistics area. They looked at the transportation within the logistics chain and realized there was a lot of variability in this area. The company decided that it wants to centralize and bring all of it’s transportation logistics into uniformity while expanding into new markets. They also feel that they should focus on their core competency, “maintaining our leadership in the shelf-stable juice drink category.” In order to maintain their core competency and centralize their transportation, they looked into the cost of expanding the transportation further and how long it would take. The company has now decided a 3PL would be a valuable asset to the company. I agree with this decision. The company is looking to overhaul their transportation but feel this is not the area in which they excel. They will be able to maintain their focus on their core competency while allowing a 3PL to revamp the transportation logistics if they go through with this idea.
2)Based on your understanding of Ocean Spray its business needs, what type of 3PL firm do you fell might be of greatest potential value in terms of a relationship?
I feel that Ocean Spray should look into a transportation based 3PL provider. This will allow Ocean Spray to develop more organized transportation operations while still allowing them to focus on their core competency. A transportation based 3PL will be able to emphasize the transportation based assets of Ocean Spray and offer the company further logistics help.
3) What steps would you suggest be considered by Ocean Spray as it begins to analyze the feasibility of forming a relationship with individual 3PL providers?
Ocean Spray should use the following steps while considering forming