Ocean Spray and 3pl Providers

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Chapter 4 Case Study 4.2 Case Summary: As an agricultural co-op owned by more than 750 citrus growers in the United States and Canada, Ocean Spray, Inc. produces canned and bottled juice, juice drinks, and food products at distribution centers in New Jersey, Wisconsin, Texas, and Nevada. In an effort to increase focus on its core competency, centralize its transportation operations, and reach other markets that were not currently accessible, Ocean Spray carefully examined their overall performance in logistics and transportation areas, as well as the costs to build up transportation capabilities. The analysis results determined the need to strongly consider the use of a third-party logistics provider (3PL). Case Questions: 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 a 3PL? A significant amount of variability in its areas of operations prevented Ocean Spray from focusing on their core competency. In an effort to improve uniformity and control, as well as reach markets that were not accessible to them, the company determined they needed to centralize their logistics operations and expand their logistics network. 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? Information based 3PL, such as Transplace, Inc., provide customized solutions and technologies that scale the business needs of their customers. Ocean Spray could benefit from the many services offered by Transplace, which include third-party logistics, supply chain consulting, freight services, and carrier development. 3. What steps would you suggest to be considered by Ocean Spray as it begins to analyze the feasibility of forming a relationship with individual 3PL providers?
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