Huaihua City, Hunan Province Tobacco Company's Logistics Outsourcing Strategy Research

The Tobacco industry has been developing rapidly in recent years. How to deal with the problems of logistics management which occupy a great deal of effort of tobacco companies' management, that is, how to make use of third-party logistics companies to assist the completion of its logistics business management, has became an important decision-making of tobacco enterprises.The problems of logistics management in Huaihua Tobacco Company and the logistics management projects of the companies were studied in this paper. A solution of adopting logistics outsourcing was proposed in the paper in order to solve the problem of logistics management. The basic way of logistics outsourcing for Huaihua Tobacco Company and some issues that should be considered when the decision being made were analysied in this paper. Combining with their own actual conditions of Huaihua Tobacco Company and the existing logistics condition in Huaihua city, a new solution of Huaihua logistics outsourcing was proposed, that is: Huaihua Tobacco Company takes the fixed assets as equity investment, establishing a new independent third party logistics which held by the Tobacco Company and cooperated by the third party logistics, outsourcing the logistics business overall. Thereby to achieve the purpose of reducing the cost, streamlining and holding both side of the main business developing and tobacco logistics controlling. After the design of the system of Huaihua Tobacco Company logisitics, the writer proposed the specific methods and steps of logistics outsourcing. And further put forward the idea of all-round logistics outsourcing which to be a reference of tobacco industry logistics outsourcing.