A Company’s Selection & Implementation Of 3PL Application

Small and medium-sized enterprises (SMEs) play important roles in China economy, while many SMEs are facing with the logistics problems due to out-of-date concepts, low level logistics operations and lacks of logistic expertise. Application of 3PL mode in SMEs can bring remarkable benefits, but improper application can also cause risks and loss. How to select the logistics mode and implement the 3PL application to increase logistics service and management level and efficiency in SMEs?In this research,3PL mode has been applied in a SME case company-A COMPANY, combining the methods of literature research and case study:1. Reviewing and analyzing researches of Three Party Logistics and its application in SME.2. Considering A COMPANY’s situation, the framework of logistics system analysis has been proposed:through the detailed investigation and analysis about products and customer needs, the existing logistics system and problems, the proposals for new logistics system, logistics mode, and the outline of the construction have been put forward.3. The framework of the implementation has been formulated including "the establishment of project organization, primary selection of 3PL suppliers, scheme customization, decision-making of supplier selection, contracting, building logistics system infrastructure, logistics model transformation and third party logistics management".3PL application has been done in A COMPANY following the framework. The author also proposed key points in the 3PL supplier selection standards and process, general and special provisions of the contract, the framework of scheme customization, and the descriptions of process in the establishment of system infrastructure and logistics mode transformation, and 3PL logistics management.We hope this study can be a useful reference to SMEs when they apply 3PL model in their companies.