Research On Application Of Theory Of Constraints To Third-Party Logistic Enterprises

Owing to the relatively late starting, modem logistics in China falls behind the developed countries in many aspects, such as macro-circumstances, facilities, technique, management and so on. It is urgent to create favorable conditions for the development of domestic logistic enterprises and lead them to develop along the right track.Based on the relevant articles and researches from home and abroad, this paper makes a deep analysis on the current situation and problems in the development of our modem logistics. Combining Theory of Constraints (TOC)' Thinking process (TP), this paper microcosmically researches and offers a set of management methodology and technology to identify and eliminate the system bottlenecks and increase the throughput.The main contents of this paper contain three parts: the first part introduces TOC under the logistic circumstances. In this part the article develops the performance measures and methods of TOC aiming to accurately indicate the operation of the 3PL enterprises; the second part introduces the process of identifying and eliminating bottlenecks in the 3PL enterprises. In this part it mainly analyzes the bottleneck of the 3PL enterprises with the thinking and technology of TOC's TP; the third part is experimental analysis, which optimizes a certain case with TP and analyzes the results with the performance measures of TOC.This paper brings forth two new ideas: 1. It applies TOC that was ever considered the secret weapon in American manufacturing organizations to logistics. It identifies the bottleneck of enterprises with TP to help them make correct developing strategy. 2. Different from the traditional accounting system cored on the cost, the paper considers the system throughput as the aim of enterprises' strategy.This research has most important theoretical and practical significances. The theoretical significances lie in that it applies TOC to a new field-logistics, and the theoretical significances lie in that it offers a new instruction to make developing strategy and some valid suggestions to improve the performance for our logistic enterprises.