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.