Beverage Companies, Logistics Outsourcing Strategy Study

The beverage industry is the most potential and develops quickest in China food industry.Its total output has risen over 20%since 1980.Facing this giant,attractive market, on one hand,the new concept,the new type and new brand emerge one after another;the price war,the advertisement war stand out unceasingly;The consumption demands grow fast;the market scale expands constantly.On the other hand,the sole price competition among enterprises leads to lower and lower profits and the competition becomes more and more fierce.In order to win advantage in such fierce market competition,the enterprises start to focus on logistic field and consider it as the important part of enterprise strategy. Under such circumstances,some beverage companies outsource non-important logistic business for the third party professional logistic forwarders to manage.Although in China, the third party logistic market is developing rapidly,the ability of companies to manage their own logistics is rather poor.Therefore,some beverage enterprises don't achieve their anticipated result after outsourcing.Through theoretic analysis,the article concludes that logistic outsourcing could reduce cost,decrease fixed asset investment,strengthen the core competence,but it also has many risks like the bad service,the increasing hidden cost of communication and coordination,the low working efficiency and the important information release and so forth. According to the main problems existed in the logistic outsourcing including policy-making faults,the neglect of monitoring and managing the process and the ambiguity of responsibility,the article summarizes that the drive to logistic outsourcing in beverage companies derives from more management cost advantages and competitive advantages. Based on the analysis of causes as well as the factors which influence the logistic outsourcing,the article proposes the policy-making model and tells us whether the outsourcing is needed and how to outsource.Aimed at strategy risk,management risk, market risk,transaction risk,credit risk and the financial risk,the article put forwards logistic outsourcing management strategy.Meanwhile it gives an example of company A to analyze the logistic outsourcing management strategy.It is hoped to provide some methods to bring the advantages of logistic outsourcing into full play in the premise of avoiding risks.