Research On Evaluation And Selection Of Logistics Service Providers In Fourth Party Logistics

With the acceleration of the economic globalization and fast development ofmodern science & technology, especially information technology and communicationtechnology, the shift of modern logistics mode becomes a main approach forenterprises to cut cost and enhance competitiveness. The third party logistics hasmany advantages in distribution services, however, it lacks strategic expertise tohandle the entire supply chain and skills to integrate supply chain flows. From theidea of supply chain management, it has limited ability to lower cost and keep supplychain cost at an optimal level. Under this background, as an innovative logistics mode,the fourth party logistics emerges as the times require. The development of fourthparty logistics will boost China's modern logistics, facilitate adjustment of industrystructure and alleviate negative impacts on national economy caused by bottleneckproblem in current logistics. As a rising logistics model, the fourth party logistics hasgradually become hot in logistics research.The fourth party logistics integrates social logistics resources effectively andcreates value for the entire supply chain. It not only controls and manages specificlogistics services, but also puts forward schemes for the whole logistics process, tomeet different customer needs. In practical operation, the logistics services of fourthparty logistics is done by third party logistics providers. Its strategic decisions of thesupply chain is fulfilled and tested by the practical operation of third party logisticsproviders. Its solutions for the supply chain and effect of integrating social logisticsresources are directly influenced by third party logistics providers' performance.Therefore, evaluating and selecting logistics providers is a key issue in fourth partylogistics, which is significant in research.The whole paper includes five parts, which are as follows: The first chapter introduces the background and significance of the emergence offourth party logistics, the current status of research of fourth party logistics both inChina and overseas, and the purpose and importance of this paper.The second chapter mainly introduces basic theories and knowledge of fourthparty logistics, including: the concept of logistics and development of its model, theconcept, functions, advantages, operational modes of fourth party logistics and itsrelationship with supply chain management, which are theoretical base for research onevaluating and selecting logistics service providers in fourth party logistics.The third chapter analyzes the business flow of fourth party logistics in detailand gives the steps of evaluating and selecting logistics service providers; establishesthe evaluation index system of selecting logistics service providers.Based on the theory of grey system and principles of multi-hierarchical greycomprehensive evaluation method, the fourth chapter establishes multi-hierarchicalgrey evaluation model of selecting logistics service providers.The fifth chapter gives an instance to analyze and demonstrate the applicabilityand advantages of the evaluation method of this paper.