From 3PL provider’s standpoint, having early demand information and be part of the collaborative forecasting
effort, will definitely help in planning the transportation capacity, inventory levels, and scheduling. Consider the
business conditions of the 3PL company which serves the automobile maker. Automobile spare parts are shipped to
service centers as regular parts required during regular service schedules and as emergency parts due to car
accidents. These spare parts are usually very expensive which suggests low inventory and when needed in
emergency must be shipped by air. The company faces the difficulty in managing the inventory of the spare parts to
cater for both regular orders and emergency requests which must be satisfied immediately. Having constantly updated
demand information and forecast, the company will be able to handle the inventory and transportation planning and
scheduling more efficiently.