Profit Distribution Research On VMI Supply Chain With The Third Party Logistics Involvement

In the21st century,market competition is not only a competition between enterprises,but also a competition between the supply chains,there is only one possible forenterprises to gain competitive advantage-in cooperation with other companies,cooperation operations is the Foundation of The VMI. The application of VMI isincreasingly common,which is a cooperative strategy in the enterprise. Implementation ofVMI makes buyer obtain lower inventory and improve service levels, but often leads tovendor inventory management burden heavier, especially when one vendor have to face anumber of supply buyers. To over come the burden, enhance their core competitiveness,vendors in the supply chain have to consider the introduction of third-party logisticscompanies (TPL).Vendors constantly to looking for the appropriate third-party logisticsservice providers that can operate the logistics business well.Firstly, this paper analyses the features of the third-party logistics and VMI at atheoretical level, reviewed the research status and research within the fieldinadequate.VMI will be introduced to the third-party logistics.Constructed a modlevendor-TPL-buyer.The user of third-party logistics companies that in the logisticsprofessional level which will promote the effective implementation of VMI.Secondly,this paper discusses the supply chain profit distribution mechanism forcooperation.Definition the purpose and principles of the supply chain profit distributionand the distribution of profits connotation specifically.This paper discusses the supplychain profit distribution mechanism and its components.It is a theoretical foundation tothe establishment of profit distribution model.Thirdly,this paper studys the profits distribution of the supply chains,tries to make aequitable profit distribution mechanism to maintain a long-term stable relationship ofsupply chain node enterprise. Based on studies which were done before,this paper make aprofit distribution model between vendor、TPL and buyer. Trying to make the wholesupply chain to achieve optimal by coordinating the profit of each notes,. Lastly,we collected the specific data of S,R and T, Calculations show that the profitof the supply chain does increase after T companies to join VMI. And applying the modeldescribed above to make a profit distribution.