Ocean Spray Cranberries, Inc.

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Introduction According 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 company produces canned and bottled juice, juice drinks and food products at distribution centers in Bordentown, New Jersey; Kenosha, Wisconsin; Sulphur Springs, Texas; and Henderson, Nevada. August is usually a challenging month for Ocean Spray Cranberries, Inc., when the Lakeville, Massachusetts-based firm has to pump up volume to meet the surge in demand for upcoming holiday season. Ocean Spray was managing its transportation operations internally, but the company decided that focusing on its core competency would allow them…show more content…
Similarly, Verizon company uses 3PL provider, New Breed to develop an automated warehouse fulfillment solution that provides same-day processing of its direcct-to consumer orders (Patridge, 2008). The 3PL operates of Verizon’s three distribution centers, offering 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 percent accuracy while 100 percent of orders that arrive before 5 p.m are shipped the same day (Patridge, 2008). A customer even states, a call made to Verizon on Monday afternoon regarding a replacement of battery was quickly sent by tuesday morning (Patridge, 2008). This clearly indicates the fast and effectiveness of 3PLs into a company’s operations. Challenges of 3PL Although, 3PL providers are beneficial for many companies, they can also cause various challenges to customers. Quality is one 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

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