Study On Outsourcing Incentive Contract Of The Fourth Party Logistics Based On Gradient Effect

As the integrator of the supply chain, the fourth party logistics(4PL) can satisfy the demands of strengthening resource integration and the whole logistics process optimization from the modern logistics. The main function of the fourth party logistics is planning, while the specific logistics operating is delegated to the third party logistics(3PL) enterprises. Their information asymmetry may cause 3PLs take advantage of information superiority for their own benefits, leading to moral hazard problem. To avoid moral hazard, 4PL need design an incentive contract to guide the third party logistics enterprises for their own sake, to choose to act in the best interests of 4PL. This paper creatively applies the gradient effect of the reward incentive and researches how increasing marginal reward incentive affects the whole contract.Firstly, this paper defines the concept, characteristics and main services of 3PL and the concept, characteristics and operation models of 4PL, and also introduces the Transaction Cost Theory, the Principal-agent Theory and the meaning of the gradient effect, laying the foundation for later study.Secondly, this paper defines the concept of the gradient effect of the reward incentive and analyzes factors affecting the incentive gradient from 4PL, 3PL, task quality and external environment, then studies the influence of the gradient effect on the outsourcing risks, costs and interests of 4PL.Thirdly, we applies the Principal-agent theory to establish an 4PL incentive model based on the gradient effect, and studies the influence made by the incentive gradient on the efforts of 4PL and 3PL, the incentive coefficient, the utility of both sides and fixed remuneration, then comes to related conclusions. And through the numerical example we verify the effectiveness of this contract.Finally, taking YHT, a fourth party logistics financial service platform as an example, we make research on the possible problems existing in its logistics outsourcing within the chattel mortgage business and design an incentive contract for it.Providing a new method for 4PL outsourcing incentive, this paper riches the theoretical researches of 4PL and the design of the contract, and meanwhile guides the practice of 4PL outsourcing incentive to certain extent.