The Development Of China's Logistics Industry And The Choice Of Business Model

The importance of logistics has been more and more realized as the last source ofprofit in today's globalization and time-based competition. The present paper tries toreview the progress and analyze new trends of logistics industry in foreign countries,seeking to introduce advanced business model of international logistics firms as the thirdparty logistics supplier and presents its case study of the partnership of Motorola andUPS. Logistics has come from wording physical distribution, which has been considered anarrowly - defined activity concerned with tasks such as transportation, warehousing,inventory and goods management. A new concept is thought as an integrated logisticsenvironment which includes logistics capabilities, technologies, and managementtechniques. The nature of logistics could be described as a kind of service, which shouldbe well managed to save cost and furthermore to strengthen the competitiveness ofcompanies. Although logistics is common in North America and Europe, it is a relatively newconcept for our country. For many years logistics has not been treated seriously as otherindustry. Since the challenges of international competition and many weaknesses oflogistics industry in our country this paper tries to provide practical suggestions forsuccessful implementation of logistics industry such as to increase the government'sawareness of establishing favorable policies, identify strengths and weakness of and thekey of competitiveness in the logistics industry of our country, encourage the input andtransfer of know-how to the development and implementation of the third party logisticssupplier and cultivate skilled researchers and qualified professionals in operation andmanagement of logistics. The last but most important which have to be pointed out is: inthis new era the advancement of information technology and the use of the internetopened a vast array of opportunities for the development of logistics for our companies.This is because globalization, the internet, changing technologies, and productdiversification have all contributed to a complex, sometimes distinctly unmanageable logistics management.