Pricing Method On The Third-Party Logistics Service

The third-party logistics(TPL) is a new thing emerging in 1980's.It is a strategic partnership between the demander and the supplier of logistics service for long-term mutual benefit.The objective of this research is to find out an effective method to price TPL service which will fit the economic and technical environments of TPL and motivations of the participators as well.The effectiveness is reflected in two aspects:â…°) it is effective to the success of TPL relationship,i.e.,with the help of this method,both parties can focus on their own core competitiveness,learn from each other,correspond actively,and achieve common development;â…±) it is effective to the supply chain which adopts this method,i.e.,the supply chain which adopts this method is more competitive than those which don't.With the objective of this research,this thesis consists of five chapters.Chapter one discusses the background and significance of this research,together with the current application and research home and abroad.The main structure of this thesis is introduced.On the one hand,through the analysis of research background,the status of this research in related fields,as well as its significance,is illustrated.On the other hand, through the analysis of the current application and research,the actual requirements and the gap between it and the fruits of researches in existence are shown.The direction of further study is indicated.Chapter two discusses the analyzing framework of the pricing of TPL service.Firstly, the conceptual model of pricing common products is introduced,and then,on the basis of related researches,the conceptual model is extended to supply chain and TPL,thus,a conceptual model for TPL is formed;secondly,combined with the characteristics of the trade-off course of TPL service,an analyzing framework of TPL service is presented;several pricing factors and the expression of the pricing model are further analyzed.Chapter three establishes two basic types of pricing model for TPL service.A basic model is a model in which the manufacturer is a monopoly of the product market and the service supplier is a monopoly of the service market.One of the two types is named as exogenous service quality model,i.e.,service quality does not affect the demand of manufacturers' product;the other type is named as endogenous service quality model,i.e., service quality does affect the demand of manufacturers' product.A flexible method on exogenous model and a rigid method on endogenous model to managing price are presented.Both of the two methods can be put into practice,but which one to adopt should follow the actual needs.Chapter four extends the endogenous model to suit competitive product market, asymmetric bargaining power,and competitive service market,respectively.The pricing models for three cases are specifically analyzed:â…°) the manufacturer is a monopoly of product market,and the service supplier is a monopoly of service market,and bargaining power is asymmetric;â…±) the manufacturer is a competitor of product market,and the service supplier is a monopoly of service market,and bargaining power is symmetric;â…²) the manufacturer is a monopoly of product market,and the service supplier is a competitor of service market,and bargaining power is symmetric.Rigid pricing methods for these cases are presented;effects of these extending factors on the pricing methods are analyzed.Chapter five tests,through simulation,the effectiveness of pricing methods in some cases.For the effectiveness of the first aspect,which only concerns the manufacturer and the service supplier,with the establishment of a simulation model based on the pricing method,the effectiveness is tested through the variation of the results by the variation of the related factors.In essence,it is an expansion of the pricing method from single transaction cycle to several transaction cycles.The effectiveness of the second aspect,which concerns manufacturers and service suppliers on other supply chains,is tested through the result of the competition between two supply chains in one market during several transaction cycles. One of the chains adopts the pricing method presented in this thesis,and the other adopts other pricing method,such as cost-plus pricing method.The result indicats that the presented pricing method is effective.In conclusion,the innovations in this thesis,as well as the shortcomings in the research,are pointed out.The further research is directed.