Research On Design And Operation Of The 4^th Party Logistics System For A Company China

When outsourcing third-party logistics become the main practice accepted by many enterprisers to focus on core competencies and reduce operational cost, fourth-party logistics is introduced as a new solution to manage current supply chain challenges.This paper makes a theoretical and practical study on forth-party logistics by its concept, origin and evolution. Using A company(China Ltd) as an example to picture how fourth party logistics project works in China.The first part of this paper brief how fourth party logistics emerge from the third-party logistics, tell the difference between the two concepts and define the scope of A company (China Ltd)'s logistics strategy.Then, it brief the current logistics market in China, reflecting the potential obstacle for 4PL implementation in the local market. The major part describes why A China company. adopts this method to better the performance of the whole supply chain networks. The progress and operation model of the forth-party logistics project restate the importance of information technology and the theoretical basis as supply chain management. In addition, the service level agreement to measure the performance of the forth-party logistics is the creative result to be achieved by A China company'implementation the program of Lead Logistics Provider.Through the study, the fourth-party logistics could be proved a tool to align supply chain in a strategic way with three major functions:Supply Chain Management, Integrated Logistics Management and Business Process Re-engineering. Because the fourth-party logistics is too new for China, the paper also illustrates what it will be in near future for logistics industry in China.