A Study Of The Strategy Of The Logistics Outsourcing Service Improvement Of The Jinhengli Company

With the rapid development of economy and improvement of people's living standards, the varieties of fast-moving consumer goods continually increase, and brand competition in the same Industry is becoming fiercer. Competition has been focused not on products but on supply chain. Those who can make marketable products with minimal costs, and sent them to customers in the most efficient way, will win the markets. Thus the logistics services face great challenges.Jinhengli Company, a sole American funded enterprise, is a global leading fast-moving consumer goods producer. Jinhengli outsourced its distribution center to a Third Party Logistics (3PL) in 1998. It has been more than ten years until now. By outsourcing logistics operations, Jinhengli can focus on its business. However, with the rapid development of business, many problems on logistics have come up, which limit the speed of business development in southeast China. The frequent shortage of stocks has made our customers lack of confidence for the promotion of the goods. Low rate of time delivery has lead to instable market shares. All these problems have placed Jinghengli in dilemma, to continue like this or to choose another logistics supplier?In this paper, studies are made on Jinghengli's deliver center in southeast China in order to find a solution to the above mentioned dilemma. The first chapter is about the basic concept of logistics, third party logistics, how to choose logistics providers, and how to evaluate the performance of them. In the main body, company profile, business model, business scope and current situation are introduced. According to current situation of TPL, Fishbone Diagram is used to find where the problems are. At last, after analyzing the characteristic of business and trends of the company's business model, we optimize the logistics solution and find the best solution based on AHP.The solution has been gradually implemented in Jinhengli's southeast region and achieved remarkable results. Rate of time delivery has increased dramatically. Accuracy rate of inventory has been enhanced from 97.985% in average to 99.99% in average. Order fulfil rate has been improved that enhance the confidence for product boost by franchisers. And also the marketshare has increased. All the above mentioned changes guarantee the rapid development of Jinghengli's business. It has been more than ten years since Jinghengli outsourced it logistics. The problems they have met with are very typical. The results of this research will be useful for companies in the same industry as reference and guidance.