Ocean Spray Cranberries Essay Example
Ocean Spray Cranberries Essay Example

Ocean Spray Cranberries Essay Example

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  • Pages: 3 (572 words)
  • Published: January 20, 2017
  • Type: Tests
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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 transporta


tion 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.

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

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be able to emphasize the transportation based assets of Ocean Spray and offer the company further logistics help.

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 a relationship with a 3PL:

  1. Perform Strategic assessment- Find their goals and objectives, needs of customers, identify environmental factors and industry trends, profile of current logistics networks, benchmark values for logistics costs and key performance measures, gaps between current and desired measures of logistics performance.
  2. Decision to form relationship- this is the part where Ocean Spray must decide on the type of relationship they want with the transportation 3PL. They must find what needs they have and how respective 3PL’s can help in those areas.
  3. Evaluate Alternatives-The company should have a handful of 3PL providers to pick from and they should interview and assess the benefits of each.
  4. Selecting a partner- The company should get to know the 3PL’s management and credentials of the company. It is important that the 3PL is going to work hard for your company.
  5. Structure operating model- Structure of the relationship refers to the activities, processes, and priorities that will be used to build and sustain the relationship.
  6. Implementation and continuous improvement- This is the hardest part, implementing the new strategies and assuring that the relationship grows in the future.

Once the selection process is complete, what kind of relationship do you feel would be most appropriate: Vendor, partner, strategic alliance, or

some other option?

I believe strategic alliance would be the most appropriate form of relationship between Ocean Spray and their 3PL. Remaining independent of each other and trading transportation channels for the money which will be paid to the 3PL.

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