Ocean Spray Cranberries, Inc Case Study
Spray Cranberries, Inc is an agricultural co-op owned by over 750 growers in the US and Canada. They produce everything from bottled juice to food products and have 4 distribution centers in the United States. During their upcoming holiday season, Ocean Spray Cranberries has a particular challenging time pumping up the volume to meet the surge. Ocean Spray realized that in order to maintain their leadership they needed to focus on its core competency and look for outside sources to help them reduce the variability in operations and expand its logistics network.
Interest in 3PL
During an investigation of Ocean Spray’s transportation capabilities, the director of logistics wanted to take a serious look at 3PL providers. The rationale for his idea to use 3PL is that 3PL can provide more depth and breadth of service offerings, allowing for less focus on transportation and warehousing and more on core competencies. It will allow Ocean Spray to centralize logistics, reduce variability in operations and expand its logistics network.
If Ocean Spray wants to stay competitive in their industry, they will need to investigate the possibility of using 3PL. I believe that the reasons cited for Ocean Spray’s use of 3PL are sound and in order to reach its goals will need to do this.
Choosing a Type of 3PL
Based on the needs of Ocean Spray the greatest type of 3PL firm that holds the greatest potential in relationship to Ocean Spray is a warehouse/distribution service. The warehouse/distribution type of 3PL offers a wide range of activities such as inventory management, warehousing, distribution and more. This type of 3PL has also been found the transition to integrated logistics services will be less complex than a transportation provider. A warehouse/distribution type of 3PL has significant experience in logistical operations and will be a very good fit for Ocean Spray.
Steps to Investigate 3PL
There are six steps that must be completed before choosing the right 3PL
Interest in 3PL
During an investigation of Ocean Spray’s transportation capabilities, the director of logistics wanted to take a serious look at 3PL providers. The rationale for his idea to use 3PL is that 3PL can provide more depth and breadth of service offerings, allowing for less focus on transportation and warehousing and more on core competencies. It will allow Ocean Spray to centralize logistics, reduce variability in operations and expand its logistics network.
If Ocean Spray wants to stay competitive in their industry, they will need to investigate the possibility of using 3PL. I believe that the reasons cited for Ocean Spray’s use of 3PL are sound and in order to reach its goals will need to do this.
Choosing a Type of 3PL
Based on the needs of Ocean Spray the greatest type of 3PL firm that holds the greatest potential in relationship to Ocean Spray is a warehouse/distribution service. The warehouse/distribution type of 3PL offers a wide range of activities such as inventory management, warehousing, distribution and more. This type of 3PL has also been found the transition to integrated logistics services will be less complex than a transportation provider. A warehouse/distribution type of 3PL has significant experience in logistical operations and will be a very good fit for Ocean Spray.
Steps to Investigate 3PL
There are six steps that must be completed before choosing the right 3PL