Study On Risk Management Of Project Logistics

Construction project needs a large amount of steel, cement, gravel and other raw materials, and is often associated with the transportation and installation of special equipment. Project logistics is different from general products logistics.It has its own characteristics such as complexity、uniqueness etc. Many project logistics service need to determine the content of logistics services according to the site conditions and nature of the logistics object. Operating conditions of project logistics system directly affect the project schedule, quality, and cost.So the project logistics is high risk.With the logistics market segmentation, project logistics become the important field for service providers to pursue the profit. At the same time, project logistics need professional equipment to complete logistics activities, the project itself is powerless to bear all of the logistics activities.For the project to choose project logistics service providers means losing the control power of logistics activities as a result the project bears the logistics outsourcing risk.On the other side for project logistics service providers the project logistics can bring rich and generous profit.But because of the complexity of the business,the logistics are full of huge risk. No matter for which angle, it is necessary to manage the project logistics risk in order to carry out the project smoothly.This paper analyzes the risk of project logistics based on the combination of the basic theory of risk management and Chinese logistics development practice. According to the status of China’s logistics development present situation and the risk management theory applying present situation, project logistics risk management present situation and the existing problems are analyzed. Put forward project logistics risk management research.. Through the analysis of the project logistics risk management concepts,characteristics,principles, target, content and working program of project logistics risk management was discussed. Combined with the basic theory of risk management, the project logistics risk management theory system was improved.The process of the risk management includes risk identification, risk estimate and analysis, risk assessment, risk control and countermeasures. Each process can use different methods to accomplish according to risk management object. Risk identification is the basic work of risk management; risk identification work quality is the basis of risk management effective. Analyze the project logistics business content, project logistics environment, project logistics risk factors and possible consequences in the project logistics risk recognition. Using improved RFRM (Risk Filtering, Ranking and Management Framework)method which was development based on RRF (Risk Ranking and Filtering Method) explored by CRMES (Center for Risk Management of Engineering System) combined with the hierarchical holographic modeling the risk factors of project logistics were identified. Project logistics risk identification model of HHM (hierarchical holographic modeling) is established which includes9main topics such as technology, economy, management, operation etc.and the subdivision of the41sub topic composition. Through RFRM procedures the41project logistics risk factors were filtered and the main risk scenarios which need focus on were getting.Project logistics risk estimation and risk assessment has no absolute limit. Project logistics risk estimation focus on individual risk of each logistics process stage using probability theory to estimate and quantify the consequences. Risk estimates were not to consider the impact of risk from the works of the overall goal of logistics. In the risk filtering process with RFRM risk was quantified preliminary by Bias theory. Risk assessment requires considering all aspects of the overall risk of project logistics and all the risk event value based on the risk estimation to choose the main influence factors. There are many evaluation methods which are of different advantages and disadvantages.The paper compared the fuzzy comprehensive evaluation, data envelopment analysis, TOPSIS analysis, the matter-element evaluation because these methods are widely used.At last the matter-element evaluation model based on AHP and entropy weight to evaluate the project logistics risk was established.It had better for risk management cut the inducing conditions of risk and avoid risks as much as possible before the loss occur. For the project itself the most fundamental job is to select the appropriate logistics service providers. So this paper discusses how to choose the project logistics service providers. Composite matter-element model was established to choose project logistics service providers by using matter element theory and calculating the Euclid approach degree. Risk response measures also include risk avoidance, risk transfer and other measures. In this paper, the logistics insurance and the insurance conditions was discussed and analyzed.