China Manufacturing Enterprise Logistics Outsourcing Decision-making And Partner Selection Research

Outsourcing, defined as "one company transferred its business which previously finished inside to other companies". After 1980's, great changes were taking place in the competitive surroundings of enterprise, the first one is aggravation of globalization, the coming of new manufacture theory -precision manufacture and manufacture just in time, paying more attention to technique and the integration of supply chain. One of the results from these changes is the life of production was greatly shortened. In the past 20 years, the manufactures were facing the big pressure from exploiting new productions successively and capturing new market effectively, under this surroundings, rewarding period of the new productions was shortened greatly, but the cost of exploiting product and entering market increased. In order to meet the demand of searching for new product and capturing new market and offset the cost, companies must put their eyes on the broader international market, the capability of entering the globe market has become the basis of success and it has been a critical factor for companies to share the globe market. Under the new economic situation, the long-term relationship based on the core competition and the participation of interests and the latent benefit from the more flexible constitution are becoming clearer and clearer. Many enterprises focus their intellect and material on their own core advantage and outsourced their less important business to others. Outsourcing has become one of the most important and most effective strategic methods to enterprises.In 1999, Sandor Boyson made a deeply analysis and sum-up about the outsourcing theory, he thought that there were ten pieces of reason to push the enterprise to outsource their logistics: 1.improving the focus enterprises cared, 2.getting top ranking capability, 3.accelerating the process of making profit, 4.sharing the risks, 5. using other free resource, 6.capturing available capital, 7.creating cash flow, 8.decreasing and controlling the running cost, 9.using the resources which is not available for the companies, 10.effectively dealing with the functions which is hard to control. He also think that enterprises can make a choice from the following four exploiting strategy of logistics: 1 .outsourcing some logistics function occasionally, 2.outsourcing a certain function sometimes, 3.outsourcing two or three functions and then transit to outsourcing the whole supply chain so as to get the systemic benefit, 4.outsourcing the supply chain wholly on the basis of the evaluation of integral saving and profit.As far as China be concerned, the national logistics market has started but not been activated. No one will suspect that our logistics is in a hot situation, but in fact, if looking it more closely, you will find that so-called hot logistics is from the logistics service supplier -companies of store, transportation, third party and IT. But the demander of the logistics service -the manufacturers, the wholesalers and retail dealers show little interest to this. So it is no use only the suppliers have interest.The logistics companies especially the third party logistics suppliers are committed by their client to run and manage the logistics, if the demanders are not willing or can't outsourced logistics service because of ignoring the role of improving the competitive capability in the market by making the logistics management better, the effective demand in the logistics market must be limited, and this will make the third party logistics suppliers loss their basis and motivity of successive development.My paper is dead against the phenomenon of inadequate demand of logistics service in China, starting from the manufacturers, analyzed the necessity of logistics outsourcing and the advantage from it. But it is not for all the enterprises to outsource their logistics, enterprises must make an analysis first from itself to decide whether outsource its logistics or not. And after their decision, how to chose the right logistics service supplier is another...