Research On The 4PL And Its Application On The Cross Regional Logistics Cooperation

Globalization makes multinational enterprises arrange producing processes according to the theory of comparative advantage, which makes supply chain spread all over the world, cross-national and cross-regional economic cooperation become more and more frequently. China's entry into WTO promotes the market to be further open, the low cost and large market space become the outstanding advantages to attract foreign enterprises. The full implementation of West Exploration Strategy will make west China a more attractive place for the foreign enterprises, which will bring about an unprecedented developing opportunity and an even intense competition to west China. The development of west China makes the cooperation with enterprises in and abroad an necessity, which promotes the flow of raw materials, components and products, the efficiency of which is straightly affected by the logistics operation efficiency. The rising of cross-regional logistics operation efficiency needs to be realized through the high efficiency of cross-regional logistics cooperation.As a good result of specialization, the operation efficiency of Third Party Logistics (3pl) is higher than that of traditional logistics operation model. On the other hand, due to the inefficiency of the combination of different logistics providers, 3pl is unable to consolidate logistics resources cross different regions and to raise cross-regional logistics operation efficiency. The emerging Fourth Party Logistics (4pl) provides a possible solution to the problem.The paper will review the development of logistics as an industry firstly to make clear the basic knowledge about 4pl. Secondly; game theory will be used to design the motivation mechanisms from 4pl to 3pl and from the customer to 4pl. The mechanisms designed will work to motivate the 3pl and the 4pl to go all out for their customers and to motivate the 4pl to keep secret for its customers. Finally, the paper will prove the superior consolidation capacity of 4pl by a case, in which the 4pl providers are to be supposed to promote logistics cooperation between Hong Kong and Chongqing. Some possible difficulties exposed during the operation process and solutions to them are to be discussed as well.