The Study Of Contract Model Between Manufacturing And 3PL Based On Principal-agent Model

Manufacturing outsoucing their non-core logistics to third-party logistics is the direction of de velopment a nd n eeds for improving t heir core competitiveness and reducing costs with the economic development, increased competition and the gradual refinement of specialization. It leads to the relatively i ndependent between t he logistics a nd manufacturing. A lot of practice shows that the efficient lo gistics operation has a limitless role i n enhancing the core competitiveness, i mproving manufacturing service levels and reducing costs etc.With more and more logistics outsourcing t o t hird-party lo gistics, th e cooperation be tween t hem is transforming from as ingle task principal-agent relationship in to multi-task pr incipal-agent. There is in-depth a nalysis in t he single-task principal-agent problem in th e literature on manufacturing cooperation with third-party logistics companies, but the multi-task principal-agent which is more closely w hit pr actice is not study de eply. This paper studies the m ulti-task principal-agent relationship between the manufacturing and third-party logistics on the b asis of single task principal-agent th eory a nd articles a bout m ulti-task principal-agent home and abroad. Firstly, the author studies on how the manufacturing systemically evaluate the ability of 3PL and how to design contracts to identify the real capacity and cost. Then this paper analyzes the incentive measures and tasks allocation under different observability and the ownership of some fixed assets from the multi-task principal-agent perspective. In cost, service quality and timeliness of delivery, there is in-depth analysis and some conclusions. In the last, the author makes a summary of the text and teases out the decision-making process of manufacturing outsourcing logistics.