A Research On The Issue Of Logistics Outsourcing Helping Boost Chongqing's SMEs Outward-oriented Development

This thesis mainly studies the issue of how SMEs, an important part of Chongqing's economic entities, by applying logistics outsourcing, enhance their core competitiveness, seize the historical opportunity, become bigger and better in the international arena and overcome the internal and external difficulties, and finally, to achieve outward-oriented economic development.The reason of choosing this issue is that under ten years of direct jurisdiction Chongqing has had some economic accumulation and its socio-economic development has attained impressive achievements. In the new stage of development, the municipal government has explicitly proposed that Chongqing will take five years to become an open highland in the west of China. Obliviously, to reach this goal it needs to greatly develop export-oriented economy. Chongqing's small-and-medium-sized enterprises are facing a series of golden opportunities, such as the further advancing of China's Western Development Campaign, the accomplishment of the Three Gorges Dam, the first inland free trade zone settled in Chongqing, the publishing of the National Development Document No.3 and so on. However, there are also a lot of adverse conditions. The external factors include the continued impact of the global financial crisis and the lack of comprehensive social service system and legal guarantee. The internal factors widely exist in many small-and-medium-sized enterprises, for example, the economic aggregate is small, their financial channels are limited, they are in a weak position in resource allocation and market competition, the sustaining power of development is deficient and the shortage of professionals. Thus, it needs an effective way to solve the external and internal difficulties, which will give a strong guarantee to small-and-medium-sized enterprises'well export-oriented development. This thesis holds that the best way to solve the problem is logistics outsourcing.The idea of this paper is below: First, it reviews the related theories and gets clear about the status quo, problems and factors of Chongqing's small-and-medium-sized enterprises' outward-oriented development, and then it analyzes the factors from two aspects, including enterprises'interior management and their external environment. Next, it makes a SWOT analysis on developing small-and-medium-sized enterprises'export-oriented economy by logistics outsourcing in Chongqing. Thus, we have a clear mind about the advantages, disadvantages, opportunities and challenges. Based on the SWOT analysis, this paper comes up with a strategic plan, including a series of strategic choices which help increase small-and-medium-sized enterprises'core competitiveness and develop export-oriented economy. Finally, it proposes some measures and suggestions to guarantee these strategies'smooth implementation.Through research it comes to these following conclusions:Conclusion One: There exist five features and six problems when Chongqing's small-and-medium-sized enterprises develop outwardly, including utilizing foreign investments effectively, the foreign project-contracting amount has increased greatly and foreign labor services cooperation have made a considerably large progress compared with that of ten years ago, the quantity of export commodities keeps some growth in the stability and the goods' price is generally high, enterprises invested by foreign funds in Chongqing go well with production, management and financial condition, and the foreign capitals actually utilized by the projects (enterprises) directly invested by foreign funds in Chongqing rises dramatically. In the meantime, Chongqing's small-and-medium-sized enterprises are facing six problems in the process of developing outwardly, such as the economic aggregate is small, they are in a weak position in resource allocation and market competition, the lack of good social service system, the related laws and policies are defective, the sustaining power of development is deficient, the ideas of logistics outsourcing and supply chain organization haven't been settled up basically, and professionals in logistics outsourcing and supply chains' organization are in shortage. These problems are caused by many factors like the quality and management level of small-and-medium-sized enterprises' employees are low, the credit of those enterprises is generally poor, their property rights are unclear, the government support is limited, the related laws and policies are defective, and the credit and guarantee system are imperfect.Conclusion Two: In the process of logistics outsourcing helping boost Chongqing's SMEs' outward-oriented development there are four advantages as well as four opportunities. In the meantime, six disadvantages and five threats exist. There are four advantages in logistics outsourcing helping boost Chongqing's small-and-medium-sized enterprises' outward-oriented development. First, the supply chain dominated by small-and-medium-sized enterprises has strong relevance. Secondly, their ways of logistics outsourcing are relatively simple. Thirdly, their cost of operation is low. Lastly, their work is courageous and apt to make innovations. At the same time, Chongqing is facing a series of golden opportunities, such as the further advancing of China's Western Development Campaign, the accomplishment of the Three Gorges Dam, the first inland free trade zone settled in Chongqing and the publishing of the National Development Document No.3. On the other hand, there are also many disadvantages, such as the lack of a regional logistics platform and infrastructure, the cultivation of general logistics operators and the information system project are inadequate, enterprises'consciousness about logistics should be strengthened, and the system of logistics needs more innovation. Besides, it is facing threats as well. For example, the control of logistics outsourcing is obviously insufficient, the augment relies on risks, the boycott of internal staff exists, the customers'satisfaction is reduced and the interests of enterprises are damaged.Conclusion Three:Based on the SWOT analysis, this paper proposes six strategies that can help boost Chongqing's SMEs'outward-oriented development by logistics outsourcing. The first is S+O strategy. It means to take the lead in making full use of advantages in China's Western Development Campaign with strong relevance, to reduce the operation cost by grasping the opportunity of the first inland free trade zone settled in Chongqing, and to exploit its advantage of innovation with the preferential policy--- the publishing of the National Development Document No.3. The second is S+W strategy. It means to solve the problem of the lack of logistics platform by taking advantage of strong relevance and to solve the problem of the poor information system with innovation. The third is S+T strategy. It means to refuse resistance by lowering the cost and improving employees'benefits, to reduce the negative influences by revising plans and procedures, and to better customers'satisfaction with regular connection and strong control. The fourth is O+T strategy. It means to strengthen enterprises' control by the use of their radiating and exemplary role, to reduce the cost with the preferential policies as an inland free trade zone, and to improve enterprises' profits through the measures bringing by the National Development Document No.3. The fifth is W+T strategy. It means to enhance the awareness of logistics and pool the staff, to solve the problem of weak control over outsourcing by improving the information system, and to enhance customers'satisfaction by intensifying efforts to build the regional logistics platform. The sixth is O+W strategy. It means to build a regional logistics platform by virtue of the preferential policy of the National Development Document No.3, to carry out the infrastructure's building and integration with the coming inland free trade zone policies, to grasp the opportunity of further advancing China's Western Development Campaign and enhance the cultivation of general logistics operators.Conclusion Four: To seize the opportunities, and to overcome the difficulties, a bright future of logistics outsourcing helping boost Chongqing's SMEs' outward-oriented development is foreseeable. Although it seems currently Chongqing's SMEs' outward-oriented development is not smooth and many problems exist. However, it has great potential. Chongqing's own advantages and the coming opportunities are prominent and so they are the dominant aspects. The six strategies based on the SWOT analysis about logistics outsourcing helping boost Chongqing's SMEs' outward-oriented development can enhance enterprises' core competitiveness effectively, make SMEs become a new force in the international arena, and develop bigger and better in the international market. As long as these strategies executed well, the goal of developing Chongqing's outward-oriented economy by SMEs'logistics outsourcing can be achieved.