Study On Outsourcing For Enterprise Logistics

With the development of logistics industry, logistics outsourcing has been an important means of the expansion of many companies income, logistics outsourcing can reduce the logistics cost of enterprises, enterprises can enjoy a professional third-party logistics services, and can reduce capital investment so that enterprises can focus on their core business. Although there are many benefits of logistics outsourcing, however there are a lot of risks of logistics outsourcing, a worng outsourcing decision-making can lead to lose all, so it is necessary for the logistics outsourcing decision-making in detail and in-depth a study, this paper explores further based on previous studies on the logistics outsourcing decision-making, and expects to provide some useful methods and suggestions for the enterprises in the logistics outsourcing decision-making.This paper discusses the decision-making of logistics self-employed or outsourcing, the choice of business policy for the logistics service providers, as well as logistics outsourcing risk analysis and early warning in order to ensure implementation of the decision and so on. In the part of the decision-making of logistics self-employed or outsourcing, first of all analyzing the enterprise-self and the TPL market from a strategic perspective, only when firstly they are suitable for outsourcing, we can discuss of the economic benefits of outsourcing further. This paper divided the enterprises into two types for the decision-making of logistics self-employed or outsourcing, one is the initial state without logistics assets, and another is with logistics assets, and introduced the two phases of logistics outsourcing and the concept of switching costs of outsourcing. In the part of strategy decision-making of enterprise logistics service suppliers, studied how to choose a suitable one between multi-supplier strategy and the single supplier strategy, and studied the method to ensure TPL don't evade their responsibilities. In the part of the risk and risk early warning of logistics outsourcing, analyzed the logistics outsourcing risks that may exist when outsourcing, and used BP neural network to design of the early warning system of enterprise logistics outsourcing risk. Through the analysis of the decision-making of logistics self-employed or outsourcing, this paper found that the market maturity also plays a very important role to issues of logistics outsourcing in addition to asset-specific, they together ensure the income of logistics outsourcing in the mature stage. To the enterprise that its initial state with logistics assets, on the basis of considering the income of the maturity stage, they should consider the switching costs of changing logistics self-employed to outsourcing. This paper also found that the cooperation productivity between enterprises and TPL and asset-specific have important influence to the investment recovery period of switching costs. In the part of strategy decision-making of enterprise logistics service suppliers, enterprises should carefully analyze their supplier switching costs, if switching costs have greate restrict on changing the logistics service supplier, then by comparing the size of income between the multi-supplier strategy and the single supplier strategy, enterprise can choose the better strategy. If the switching costs have small restrict on changing the logistics service supplier, it is recommended to choose the single logistics service supplier strategy, because the cost of coordination and monitoring lower than multi-supplier strategy. For those enterprises who have been to choose a single supplier strategy, it is necessary to cut appropriate income for the supplier to maintain the anticipant service level of logistics.