Corporation Logistics Outsourcing Strategy Analysis

Under the current violently competitive environment with changing market and more and more individuation want, it is too hard for an enterprise to get competitive advantage in all business, so they must focus their resource and energy on their core business that they can maintain the competitive advantage and be sure to survive and develop. Under this background it is becoming popular for an enterprise to outsource her non-core business, such as the logistics business to the third party logistics. In China, the logistics market and the management ability of logistics in companies are developing fast, but their level is not too high, so to outsource their logistics business will bring them more advantage, as well as big risk. So we need urgently a systematic and scientific method to help logistics management. On the basis of the real data, from the fundamental purpose of an enterprise existing and developing analysis, I establish the theory of cost advantage and the theory of risk of logistics outsourcing in this paper, and I stress on the research on the four factors which can contribute the risk nature. On the basis of these theories, I put forward a comparative systematic process and tool for logistics strategic decision-making. For example, the model of logistics strategic decision-making, AHP model combined with environmental variety, three-dimension analysis model linked with state of logistics market development, core business judgment model, etc. Together all of these theories and tool, it supplies a good way to answer most question during dealing with the logistics business. Additionally, I point out that an enterprise should combine its logistics strategy with the enterprise development strategy according to the general development course of an enterprise, we should fully consider the internal and external factors to make the logistics strategy with developing view. And I also show that it is most important for an enterprise to enhance its comprehensive management ability of logistics business to resist the risk of outsourcing. This is also the foundation for a logistics market to grow healthily. Because if the sense and the managing ability of logistics can get a high level, it must be able to push the TPL to improve their service continuously, accordingly the risk will be lowered. In return, this will further push enterprise to outsource more logistics business. Then it can become a good cycle. If on the other side, then it will hinder the development of TPL market.