A Study On Methods Of Manufacturing Enterprises' Choice Of Third Party Logistics

Nowadays, the situation of logistics activity in manufacturing enterprises which are in China is not so good. The problems of high logistics cost, long inventory cycle, low capacity utilization and so on are in exist, so it is in badly need to find a effective way to improve the level of logistics in manufacturing enterprises. The third party logistics can reduce the cost and improve logistics efficiency, relying on professional advantages, so it is necessary for manufacturing enterprises to choose outsourcing of logistics.Now, there are many types of third party logistics which can offer logistics services. At the same time, manufacturing enterprises can enhance the control to the third party logistics and reduce the negative influence, depending on information technology and formal management. It is feasible to choose outsourcing of logistics for manufacturing enterprises because of the internal and external conditions.It gradually becomes a trend to choose outsourcing of logistics, so it is a necessary problem for manufacturing enterprises to make sure outsourcing of logistics go well. Now, manufacturing enterprises are not satisfied with the services of the third party logistics, so the third party logistics need to improve the level of service and manufacturing enterprises need to manage the third party logistics well to ensure that it performs according to the requirements of enterprises. And, choosing an appropriate third party logistics is the first step for successful management, especially in the situation that the good and the bad services of the third party logistics are intermingled. So choosing an appropriate third party logistics is particularly important for manufacturing enterprises.The study on the problem of choosing third party logistics is earlier in abroad, but it is not fit to the situation in our country, for it was studied just according to the market environment and enterprise condition abroad. This study was based on the latest studies in abroad and domestic, and combined with the situation of logistics market and the conditions of manufacturing enterprises in Zhejiang province. It tried to establish a decision-making model for manufacturing enterprises to choose an appropriate third party logistics.This study used questionnaire and case study method, on the basis of extensively reading literatures in abroad and domestic.This study designed the questionnaire from three aspects: performance of logistics service, strength of third party logistics, and growing capacity of third party logistics. On the basis of extensive survey to manufacturing enterprises in Zhejiang, this study used exploratory factor analysis, and extracted factors which manufacturing enterprises focused on while they were choosing third party logistics. Then, it established an evaluation and choice system.This study proposed a method that biding combined with AHP method, and constructed a two-step model, including rough selection and delicate selection. In rough selection step, manufacturing enterprises compared the needs of service and acceptable price with the range and quote of third party logistics, and then selected the eligible third party logistics. In the delicate selection step, this study used the method of AHP to evaluate third party logistics comprehensively and made the choice, on the basis of evaluation and choice system.In the case study part, this study elaborated the whole process of using two-step model. It provided reference for manufacturing enterprises how to use this model to choose an appropriate third party logistics.