CPPMEC Logistics Outsourcing Decision-Making Analysis And Operation Tactic

This paper will analyze the main business of CHINA PETROLEUM PIPELINE MATERIAL & EQUIPMENT CORP. (short for CPPMEC) . The paper analyze the logistics outsourcing decision for the transportation and Customs Clearance of CPPMEC, by Two-dimensional decision theory, transaction cost theoryand core competence theory, take the general trade important and EPC project general contract as representative, according to the experiences and example which I take in the five years work on the procurement.When CPPMEC make the decision for logistics outsourcing, what about the outsourcing risks and How to prevent the risks? After analysis the paper, I draw a conclusion that CPPMEC should select logistics-provider for transportation and customs clearance business in this condition. However logistics outsourcing analysis is dynamic research, when CPPMEC business realize large scale, self-operation logistics is better. Self-operation logistics would be new core competitiveness.