Study On Logistics Service Supply Chain Subcontract Under Different Subcontracting Relationship

The development of logistics has strategic significance as it is a vital link in the economic transformation. With economic globalization and integration trends are becoming evident, logistics and supply chain operational complexity greatly increased, logistics service enterprises began to seek cooperation, and gradually formed a logistics service supply chain model. The contract design between logistics service integrator and logistics service subcontractors is one of the key issues to effectively coordinate the logistics service supply chain. In order to overcome the shortcomings of the existing literature on quantitative research of logistics service supply chain and the unbalanced incentive effect of the contract due to the lack of consideration of the sub-contract relationship when design the logistics service supply chain contract, This paper designed the outsourcing contracts between logistics service integrator and logistics service subcontractors in terms of principal-agent method considering the different relations of cooperation. We drew the following conclusion:(1)From the point of view of logistics service integrator, the relationship with logistics service subcontractors can be divided into three levels according to the characteristics of the resource, the management ability and the business strategy of the two parties. Different partnerships have different applicable contracts. The investment compensation contract is applicable for ordinary investment partnerships, and the remuneration mix contract is applicable for operating partnership, and the revenue sharing contract is applicable for strategic partnerships.(2)No matter what type of contract, it can reach a Nash equilibrium, and the supply chain can reach the coordination state.(3)From the point of view of total system revenue, the investment compensation contract or revenue sharing contract can achieve the optimal level; but the total revenue that under mixed payment contract is lower.(4)Logistics service subcontractors is more willing to sign the revenue sharing contract, but the premise is that logistics service integrator and logistics service subcontractors form a partnership, and the bargaining power of both sides is well-matched; and there is no difference between the investment compensation contract and revenue sharing contract from the point of view of income for logistics service subcontractors.(5)Compared to the mixed payment contracts, logistics service integrator are more willing to signed compensation contracts, but it need logistics service integrator can detailed specification the logistics operations and process and effectively observe and influence the logistics input of logistics service subcontractors.