The Benefits And Risks Analysis Of The Raw Materials Warehouse Management Outsourcing In HD Company

As more and more enterprises realize the importance of logistics outsourcing and it’s value to the themselves, more and more businesses begin to adopt the logistics outsourcing operation mode. A lot of enterprises got advantages in cost, service and management through logistics outsourcing, so logistics outsourcing is considered to be the tiger balm to solve the problem of enterprise logistics. Any kinds of outsourcing is risky, however, the happening of outsourcing risk events may have great negative influence on the enterprise, so enterprises should think twice before make the outsourcing decisions.Based on the logistics outsourcing literatures review both in domestic and abroad, the related logistics outsourcing theories were reviewed, and a comprehensive analysis on the benefits and risks of logistics outsourcing was concluded. In this paper, the logistics center of HD equipment co. LTD., was taken for an example, the field investigation and research for the company in warehousing activities are obtained, the existing warehousing problems are found out, and we propose that warehousing management be outsourced. Because the outsourcing will make influence on many aspects, there may be many unsure problems, so the warehousing outsourcing in HD equipment co., LTD should be carried through the empirical analysis. First of all, the analysis in the demand, cost effectiveness and risks is carried to find out whether the company has the need to outsource, whether the outsourcing is cost-efficient and the risk level of outsourcing. Through the analysis, the necessity, economy and feasibility of warehousing outsourcing is proved.