Study On Risk Management Of4th Party Logistics For Company A

Since arising of the concept of fourth party logistics, i.e.4PL, it was knownworldwide rapidly, more and more companies are being or planning to engaged in the4PL business for its perspective. But the risk of applying4PL cannot be avoided inthe practice so that the risk management of4PL has become an important researchtopic.In the thesis, risk management of4PL has been investigated with methods ofComprehensive Evaluation and Reliability Analysis. Firstly, base on the existingstudies, the concept of risk management of4PL has been discussed and researchresults of4PL risk management have been summarized. Secondly,4PL company’sfunctions, capability and source are illustrated and risk of a4PL company is thenclassified as internal risk, external risk and operation system risk. The operationprocess of4PL is described in detail for risk identification, risk assessment and riskcontrol. Thirdly,4PL’s main risk is identified.The4PL business operation risk of Company A is evaluated by usingComprehensive Evaluation and Reliability Analysis Method. Base on the analysisresult, the main risk is identified as marketing demand risk and profits distributionunfair risk. Based on Company A’s marketing demand with season skew, PredictionMethod of Projection has been applied to set up the forecast model of the company.To avoid current profit distribution unfair issue, the Nash Negotiation Model has beenapplied to set up the win-win profit distribution model for both4PL and itscustomers.Finally, the suggestion to optimize the actual case of4PL base on result of4PLrisk management study has been obtained.