China's Logistics Business Development Model

China抯 entry into the WTO is approaching. The thesis provides some recommended development models for the logistics providers in China by analyzing the current conditions of the logistics industry in China. These recommendations are based on the opportunities and challenges associated with the China抯 entry into the WTO, the infrastructures and the performance of the logistics providers in China and the successful logistics theories and practices home and abroad. The purpose of logistics management is to provide the expected customers? satisfaction under the possible lowest cost structure. To achieve this target, the basic problems the logistics management should solve are to deliver the right products to the customers in the right timing and place by the right quantity and price. The modem logistics are composed of transportation, storage, packaging, processing, distribution and information. The very fact requires the System Approach to handle the problems encountered. As to the development history of logistics abroad, it is divided into three stages: the Physical Distribution, the Integrated Logistics Management, the Supply Chain Management. The driving factors are: the demand of society, the impact of new economy and the influence of new technologies. Nowadays, the logistics providers in China can be classified into three catalogues: first, the ones developed from the traditional professional transportation enterprises; second, the ones from the fleets of the production or the distribution enterprises to provide the logistics services for the society in addition to their parent companies; third, the professional logistics providers established during the past decade. Their success came from various reasons. The specific conditions in China mean the different logistics providers must follow different development models according to their unique core advantages to win in the future.