Hire Writer 3 What steps would you suggest be considered by Ocean Spray as it begins to analyze the feasibility of forming a relationship with individual 3PL providers? Revise Shipping Loads to Maximize Savings: The first step in evaluating if this backhaul opportunity was viable was to determine if Ocean Spray and the fruit shipper had compatible shipment requirements.
An average Ocean Spray truckload shipment holds 19 to 28 pallets of product. CSX boxcars fit an average 38 pallets. To accommodate this difference, Ocean Spray needed to revise its shipping process to target 38 pallets on each shipment. Coordinate Logistics Between the Two Companies: The next step in this process was to have a seamless coordination between the two companies.
Ocean Spray and the fruit shipper agreed to employ third party logistics provider 3PL Wheels Clipper to manage coordinating and billing of all boxcar movements between the rail terminals and the Ocean Spray distribution centers.
Due to the volume and past experience with rail operations, the two companies decided that the fruit shipper should take the lead on this aspect of the project. To facilitate this coordination Ocean Spray notifies the fruit shipper of the number of loads already adjusted to maximize boxcar usage.
Once the boxcar arrives in Florida, a carrier must be ready to move the shipments to the Ocean Spray distribution center. Testing Out the System: Several pilot runs were executed to guarantee that Ocean Spray and the juice manufacturer were able to coordinate load pickup and delivery within the required time windows.
The pilots also confirmed that the product was handled properly during the intermodal drayage transfer points and that the total intermodal transit times requirements fit Ocean Spray operational needs. When transported by truck, a shipment took 3 days to move from New Jersey to Florida.
The new intermodal solution takes days. The increased shipping time required additional logistical coordination. This allowed Ocean Spray to adjust inventory and transportation to accommodate the extra transit time without impacting service levels to final customers.
Although other shipments were eligible for intermodal movement, they were not transported due to unavailable capacity in the intermodal operation.
Ocean Spray redesigns their transportation networks to better customer service. These network adjustments help to reduce mileage or shifting of transportation modes into cost savings.
Ocean Spray improved more efficient distribution network that results in significant CO2 emissions savings.
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Which also help to reduce in transportation costs: Ocean Spray is planning to include CO2 savings on a regular basis to evaluate its transportation decisions.
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