Third Party Logistics Strategy And Inplementation Of TTL Company

Cutting the cost of logistics is the third profit source of enterprise. Controlling the cost of logistics became an important measure in market competition. Mapping out effective logistics strategies is the main method to boost enterprise competition. Companies have started to re-discuss on various modes of logistics management. The concept of "Third Party Logistics''has gradually allured public attention during research working. Firstly, the paper focuses on two theoretical fundamentals: the corporate strategic management theories and relevant logistics management theories. Corporate Strategy management theories include SWOT model and core business competitiveness analysis methods that map out corporate strategies, main competitive strategies, as well as cost leadership and differentiation strategies. Logistics management theories include supply chain management, basic theory on Third Party Logistics, as well as logistics cost theory, customers relationship theory, business reengineering theory which are important in the operation of logistics enterprises. Secondly, the paper introduces the background of TTL, a logistics subsidiary company attached to a group corporation, including organization structure and operational mode. Furthermore it analysises the TTL development strategy and addresses the issues faced by the company. Based on strategic management and business process reengineering theories, the paper studies Third Party Logistics and Third Party logistics companies in China. The paper points out the external necessity of transformation and proposes internal possibility of transformation through analyzing the operation of TTL. The paper adopts SWOT model to evaluate internal and external resources of TTL, puts forward the strategies that the third party logistics should choose and execute during the transformation, as well as brings forward the transforming plans by reducing costs, enhancing efficiency and improving service. The paper points out the important rules that TTL should follow when it seeks to transform into third party logistics company. Based on the feasibility of business process reengineering, the paper offers detailed plans to supervise corporate structure reorganizing, process reengineering and relevant training. The paper further demonstrates the applications of strategies in customers and suppliers management after the internal structural reorganizing is finished in TTL and points out relevant problems faced in applications, then offers the suggestions about the problems. In addition, the paper introduces the initial performance achieved by TTL through adopting third party logistics strategies. Last, to effectively assess the performance of TTL as the third party logistics firms, the paper provides an evaluation system and its applications measures to ensure the sustainable operation of the enterprises.