Ocean Spray Case Study

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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? More than ever companies are reaching out and working more closely with other supply chain participants. This allows for companies to have more meaningful relationships among other companies while maintaining focus on its core functions. Ocean Spray’s desire to look into the idea of using a third party logistics (3PL) provider would allow them to focus on its core competency of maintaining its leadership in a shelf-stable juice drink category. There rationale of wanting to centralize its transportation operations can be effectively and efficiently achieved with the alliance of a 3PL. I do agree with the reasons cited for showing interest in a 3PL. Ocean Spray wants to be able to reach out to areas it has not already gained access to. Expanding their logistics network is critical to achieving this goal. Although the results of the analysis were not revealed in the case study, it can be reasonably assumed the requirements to expand its logistics network would not only take time but would have a significant price tag to build up Ocean Spray’s transportation capabilities. A 3PL would assume the responsibilities of one of Ocean Sprays core functions and centralize their logistics operations. Ocean Spray would now be able to focus more on its core competency of manufacturing its product and ensuring it maintained its leadership in the industry. 2. Based on your understanding of Ocean Spray and its business needs, what type of 3PL firm do you feel might be of greatest potential value in terms of a relationship? Ocean Spray would have the greatest potential value in terms of a relationship with a “Transportation Based” 3PL provider. A transportation based 3PL provider would be able to support Ocean Spray with all of its

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