The rationale offered by Oceanic spray in support of the idea of using a 3PL firm
The third-party logistics provider is a firm used by companies for supply-chain management functions and it provides one-stop-shop services. The firm specializes in transportation and warehousing operation services that are scaled according to the customer’s needs. One of the rationales that have been used by Oceanic Spray in support of the idea of using a third party logistic provider is that the company wants to reach new markets and to have the access it requires logistic network expansion.
The company can take advantage of using 3PL offer and reach to the markets because of the variety of service level that is provided by third-party logistics. Another reason why the company supports the idea of using a 3PL is that it would reduce the costs used to build an Ocean Spray transportation that would support the network. The time taken to build the transportation network is also reduced by the use of 3PL, which is one of the reasons why it was recommended. I agree with the reasons cited for the interest in a 3PL because it would improve the operation of the processes, goods, and services for the company (Stair, 2009, p.110).
Type of 3PL firm that would be of greatest potential value in terms of a relationship
Warehouse and distribution based firm is the 3PL firm that would help oceanic Spray in terms of relationship based on business needs. Such a firm is a logistics and transportation company that provides supports for supply chains. Warehouse and distribution providers would be able to provide transportation services to Oceanic Spray in reaching the markets they did not have access to before. The firm is able to provide logistics and distribution functions to the company, which was initially managed internally and such a relationship will allow the company to focus on its core business and centralize its logistic operations.
Steps to be considered by Oceanic spray as it begins to analyze the feasibility of forming a relationship with individual 3PL providers
Step 1 – Objectives and goals of the relationship
The objectives and goals of a relationship are the first steps to be taken by oceanic spray in determining a relationship with 3PL providers. The step involves understanding business needs and the willingness of the parties to share ambitions and goals.
Step 2 – Corporate compatibility
The second step analyzes the extent to which the 3PL organization and Oceanic Spray culturally align. The key factors in the corporate compatibility step are management based and they include styles and capabilities used by the management of the company and 3PL firm. The relationship between Oceanic Spray and 3PL firm should be based on healthy communication transfer to reduce tension between the two firms.
Step 3 – Reaching consensus
A firm that has the power to figure out crucial matters for the relationship is to be preferred. A relationship that is able to have a protocol for the purpose of solving and addressing problems is the best for the company.
Step 4 – a strategic succession plan
The last step for Oceanic Spray is to consider the relationship that has the best strategic direction on dissolution or termination of the relationship.
The most appropriate relationship
The most appropriate relationship between a 3PL firm and Oceanic Spray is a partnership because a partnership relationship is a corporate asset in the economy and it will facilitate future success for Oceanic Spray Inc.
Reference
Stair, R. (2009). ACP Decisions for Managers MNS. Kentucky: Cengage Learning.