Research On Contract Risk Management Of Third Party Logistics

Third party logistics (TPL or 3PL) occurred in the developed countries in 1980s. It regulates the relationship of the two sides and manages the service through a series of contracts. So it has another name, contract logistics. As a new industry, it is just in its infancy. Because 3PL is nearly new in our country and the logistics market rules is still not form, contracts are always be used by some illegal members. And that does great harm to enterprise's income. Together with the intentional or unintentional behavior of two litigants to break down the contract, all those lead to contract risk existed extensively. How to recognize contract risk, evaluate its risk factors and help the enterprises control the risks effectively need to be solved anxiously.The article, from a legal aspect, gives an ordinary concept to the 3PL's contract risk, namely the risk of anyone of the two litigants breaking down the contract. Anyone of the two litigants means the suppliers, demanders and the carriers. And then, based on the careful division of contract risk, the article uses the risk management theory to analysis the contract risk from three steps.First, grounded on the concept of contract risk it recognizes the 3PL's contract risk and finds out its sources according to the 3PL's relationship between real participants. It divided 3PL's contract risk into three types: main contracts risk during 3PL suppliers and customers; partial contracts during 3PL suppliers and actual carriers; information system contracts risk during 3PL suppliers and information system suppliers. At last it analysis risk factors of all kinds of contract risk.Second, on the basis of risk recognition, it establishes a set of risk factors assessment target system. It uses AHP and entropy method to analysis the weight value of all risk factors. Then, it uses fuzzy comprehensive evaluating methods to evaluate the risk degree of every risk factor and the contract risk. According to the risk assessment, it draws the conclusion that the contract risk is in comparatively high level. Among those three kinds of contract, partial contract is the most dangerous. And how to select the participants is the most important of all the factors.