The Study On Establishing Foreignagent Relationship And Risk Prevention Of The Small And Medium-sized Freight Forwarders

With the prosperity of international trade, the international freight forwarder is facingnew opportunity and development potential. At the same time, the international freightforwarding enterprises are facing a more broad development prospects. However, the impactof the2008financial crisis has not completely faded, and international freight forwardingenterprises also face greater challenges, especially the small and medium-sized internationalfreight forwarding companies, whose development are limited by the small scale, singleservice and other restrictions. For the purpose of surviving in the fierce competition, the smalland medium-sized international freight forwarding companies should establish foreign agencyrelationship to expand service scope.After reading the relevant domestic and foreign literature, the freight forwarders and therisk management theories are combed. Then the development situation of the internationalfreight forwarding enterprise in China is analyzed, also the existing problem and developmenttrend are analyzed. For the small and medium-sized freight forwarding enterprise in China,the selection and establishment of foreign agency relationship are importantly introduced,including the selection criteria, methods and processes. The quantitative model to evaluate theforeign agent is established. After calculating we can make a choice of which foreign agent isthe most suitable. Finally, the risks in the process of the small and medium-sized enterprisebuilding foreign agency relationship are analyzed. The paper classifies the risks as threefactors, which are the cooperation risk, ability risk and operation process of risk. Based on theanalysis, how to evaluate the above risks is discussed. Taking the above analysis intoconsideration,4risk prevention measures are offered. The first one is Cultivating anddeveloping the core competence of enterprise. The second one is establishing trust mechanism and strengthening the communication of the agency relationship between the enterprises. Thethird one is taking measures to promote enterprises’ culture fusion. The fifth and the last oneis establishing a restrict mechanism.