Decision-making Of FLP Company Logistics Outsourcing

FLP Company has been in China for over 20 years, their products become market leader. Facing dog-eat-dog market, FLP Company must uplift competation from every aspect to stand on the position of market leader. Integrated Logistics is one of the ways to enforce operation, improve service quality and support marketing. With market development and extension, current Logistics resources can't satisfy customers' demand. But as supporting function, to invest more in Lgoistics is not business developing strategy. Enterprise has to outsourcing 3^rd Party Logistics service provider to leverage different levels of suppliers, all kinds of customers' demanding, big market and large territory. 3PL is preferred by many enterprises for their professional operation, flexible cooperating with others. The domestic 3PL business becomes more and more mature, which brings a lot of business chance to enterprises and themselves.This article studies the decision-making process of outsourcing commercial Logistics service. Firstly it summaries current Logistics situation in FLP, and define future logistics developing tendency according to the internal operation process and market request. Secondly it analyzes 3PL market status, their service scope, advantage and benefit to enterprises. Thirdly it shows the decision approach of outsourcing Logistics service under requirement of company, market and customers which include outsourcing content, level, strength, weakness and method to select suppliers.It's long term solution for enterprises to outsource Logistics service to support core business. On the other hand, management have know-how of supplier relationship management, to set up procedure and policy to evaluate suppliers' performance and outsourcing service to look for proper partners. This is very important to reduce risk and monitor operation of 3PL.The article takes FLP Logistics project as anexample, combining analysis of resources, capability and characters in Logistics market, provides a means to cooperate with 3PL. Hope managers can use for a reference.