Ocean Spray Cranberries, Inc.

accord to a case study cited by Staudt and Stranz (2009), ocean Spray Cranberries, Inc is an agricultural cooperative owned by more than 750 cranberry growers in the United States and Canada. The troupe produces canned and bottled juice, juice drinks and food products at scattering centers in Bordentown, stark naked Jersey Kenosha, Wisconsin Sulphur Springs, Texas and Henderson, Nevada. August is usually a challenging month for nautical Spray Cranberries, Inc., when the Lakeville, Massachusetts-based firm has to pump up volume to meet the surge in demand for upcoming spend season.Ocean Spray was managing its transportation operations internally, but the comp whatever decided that think on its core aptitude would accommodate them to maintain break downership in the shelf-stable juice drink category. The company believes centralizing its transportation operations and carry all into uniformity while expanding into new markets will be expert for their company. Although Ocean Sprays transportation capabilities to be able to throw the expansion of their logistic network can be challenging, investing in a third-party logistics provider will allow the focus of core competency and revamping of transportation logistics.Benefits of 3PLThe result of an increasing trend toward outsourcing of logistic activities, shippers have been set about with the inevit efficacy of selecting an appropriate third-party logistics provider (Soh, 2009). The process of finding the best satisfactory 3PL provider that fits user and company requirements can be very challenging. Likewise, Ocean Sprays expansion of logistics network allows the 3PL to manage distribution, packing, w arhousing and assembling. with their combined resources and knowledge, they can help to maximize profitability and reliability. One of the advantages of having a 3PL provider is having a large amount of resource network (Langley, 2012). According to an article, 3PLs have a large network available that ha s many advantages everyplace supply chains that atomic number 18 in-house.By using the resource network of a 3PL, the steps of a supply chain are able to be executed in a cost effective and efficient manner. Also, the ability of a 3PL to leverage alliances and volume discounts can result in the quick servicepossible. It allows a company like Ocean Spray to take in from many resources that are not available to them. Similarly, it lets them build solid relationships and networks that could lead to prospective services and resources in the future. A survey states, 3PLs are chiefly meeting shippers expectations and an average of 86% of shipper respondents view their 3PL relationships very successful (Langley, 2012).The certify advantage of having 3PL providers is the scalability and flexibility. Many companies are obviously looking to expand their agreement and add their revenue, so having the flexibility from their 3PL providers allows them to be stress free. 3PL providers ha s the ability to casing transportation and space according to the needs of the companys inventory. They are able to enhance the growth of the company into new locations that companies never had nettle to. This can definitely benefit Ocean Sprays company as its main goal is to expand their logistic network to other(a) locations. An article states, sixteen companies reported revenue data and collectively, these companies generated in bare(a) of $23 billion in North American revenues during the year 2009 collect to the fact of having 3PL providers (Lieb, 2010). Furthermore, three CEOs said their companies had been very profitable and some categorize their companies as marginally profitable (Lieb, 2010).The third advantage of having 3PL providers is the ability for never-ending optimization. 3PL providers have the resources to dress improvements and adjustments to each link in the supply chain. They make sure that all company and user needs are met by using the most cost effecti ve, efficient and fastest methods available. An article states, 3PLs allow shippers to conserve costs and resources, while also helping to provide high service levels (Patridge, 2008). Similarly, Verizon company uses 3PL provider, New Breed to develop an automated store fulfillment solution that provides same-day processing of its direcct-to consumer orders (Patridge, 2008).The 3PL operates of Verizons three distribution centers, fling real-time visibility to orders and inventory by tracking every serialized unit. Moreover, New Breed ships 20,500 consumer orders daily for Verizon with 99.9 share accuracy while 100 percent of orders that arrive before 5 p.m areshipped the same day (Patridge, 2008). A customer even states, a call made to Verizon on Monday good afternoon regarding a replacement of battery was quickly sent by tuesday cockcrow (Patridge, 2008). This clearly indicates the fast and effectiveness of 3PLs into a companys operations.Challenges of 3PLAlthough, 3PL providers are beneficial for many companies, they can also event various challenges to customers. calibre is 1 of the main things that causes the downfall of customer satisfaction (Hudaziak, 2012). In the 3PL market, customers expectations are high, from operation efficiencies to more strategic development (Hudaziak, 2012). Hence, the need to eliminate any extra internal waste and inefficiencies of 3PL processes needs to be established so that the level of customer satisfaction and overall performance can increase (Hudaziak, 2012). Also, the change of inventory policy causes the loss of client business or ownership (Hudaziak, 2012). Thus, 3PLs have no room for errors as it can cause a delay in shipment. RecommendationIn the case of Ocean Spray Cranberries, establishing a transportation based 3PL provider would be the best way to go. In fact, Ocean Spray did give Exel providers the opportunity to ship their products and also awarded them with colossal service and on-time deliveries. Ocean Spray, appreciated the dedication and commitment service that stand out provides every day. Thus, the only recommendation would be to keep the strong relationship between the company and their carriers as its important to understand one another when it comes business and customer requirements.