Faw - Volkswagen Logistics Outsourcing

The essay conducts a in-depth research on logistic outsourcing of Faw-Volkswagen. Logistic outsourcing is general developmental trend of large scale auto manufacturers. Faw-Volkswagen is a typical large scale auto manufacturer. The essay describes the logistic outsourcing status quo and features of China's large scale auto manufacturers, and analyzes the merits and demerits of logistic outsourcing.The immediate impact of logistic outsourcing on Faw-Volkswagen is reduction of logistic cost and its total cost which enhances its competency. Meanwhile, logistic outsourcing has brought about potential relationship risk which is not exit in self-contained logistics. Faw-Volkswagen will not only benefit from logistic outsourcing but also to some extent avoid relationship risk by strengthening service monition and control and relationship management. On the basis of logistics, logistic outsourcing, consignment and agent theory and game theory, through collecting second-handed information and telephone interview, the author analyzes the logistic outsourcing status quo and features of Faw-Volkswagen in detail, explains the benefits of logistic outsourcing for Faw-Volkswagen and the problems exiting in Faw-Volkswagen's present logistic outsourcing system, and finally proposes that Faw-Volkswagen should reinforce the service monition and control and relationship management after logistic outsourcing and improve interactive communications with their clients in order to solve problems such as the incomplete logistic outsourcing control system of Faw-Volkswagen, lack of effective motivation and restraint, logistic outsourcing's negative impact on customer satisfaction, etc and eventually to guarantee the smoothly carrying out of logistic outsourcing in Faw-Volkswagen.