Third-party Logistics Business Operations Risk Analysis

In an increasingly competitive society under globalization, enterprises are choosing outsourcing tactic in order to detract risks and improve their core competive power, that is to outsource the non-core business to the specialized service provider. Third Party Logistics is the specific application of outsourcing tactic in logistics field. The Third Party Logistics, based on traditional logistics such as transportation enterprises and warehousing companies, elevates the efficiency of social activities by integrating the parts of supply chain and has now become an inevitable part of the development of modern economy.But like other enterprises, the Third Party Logistics enterprises would have to face the various and continuous changing risks lying ahead in the process of their development. There is still not enough emphasis laid on the management and protection of risks although the importance of the Third Party Logistics has been recognized. Insight analysis of the risks and putting it into practice must not be ignored.The paper firstly illustrates the general theories of enterprises risks, then summarizes the main operational risks of the Third Party Logistics by summing up the common characteristics and the individual characteristics after the comparision between the different kinds of enterprises. Finally, the paper brings forward concrete solutions for the purpose of providing theoretical supports and references after putting up the thoughtfulness through analyzing the difficulties faced by the Third Party Logistics enterprises.The paper consists of four chapters.The first chapter introduces some basic theories about the operational risks of traditional enterprises. The author analyzes the motivation of dealing with risks using relative economic and management theories after depicting the main characteristics and the most important types of risks.The second chapter discusses the main operational risks of the T hird Party Logistics enterprises. The part tells of the importance of the management of risks after analyzing the specific characteristics and summarizes the main operational risks of the Third Party Logistics by showing the differences between the two kinds of the enterprises.The third chapter analyzes the main operational risks using economic theories, mainly about principal-agency risk and risk of externality. The third chapter is the main part of the paper.The fourth chapter brings forward the countermeasures of the operational risks of the Third Party Logistics enterprises after analyzing the main problems in the process of dealing with operational risks so as to provide some help to the operation of enterprises.