Research Of Corporate Logistics Of Amway China

A direct selling company will not succeed in the competition unless it has a complete logistics system to support its growth. With increasing market potential and expanding business, direct selling companies are facing more challenges. In the future Direct Selling companies will have to deal with myriads of service points and tens of thousands of direct sellers. How to reduce cost and improve service through optimizing distribution will be the focus of direct selling industrial research. This article analyses Amway's approach to adopt a consumer perspective, considering the entire supply chain, develop a logistics solution plan for future business growth based on its current comprehensive logistics management model. The purpose of the article is to provide experiences to the logistics development of the Chinese direct selling companies.The first part of this paper looks at the common practice of supply chain and third-party logistics in China's direct selling industry, as well as the status quo of the industry's operations and logistics administration. The second part is devoted to Amway China's practices in distribution, delivery and operational modes. Targeting the present issues and challenges faced by Amway China, the paper then proposes goals and a strategy for Amway China in developing a horizontal logistics system. A tentative next-step plan is mapped out, mindful of upgrading the logistics network and improving home deliver services, as well as the current business conditions. With suggestions and recommendations for Amway China's operational system of logistics, the final analysis addresses the future prospect and prevalent risks in the direct selling industry.