China Third Party Logistics Analysis

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CHINA THIRD PARTY LOTISTICS SURVEY AND BETTER LOGISTICS COMPANY STUDY BY S.guo Business Logistics Management Hogeschool van Arnhem en Nijmegen HAN University.2009 6/9/2009 1 Acknowledgements 3 2 Executive summary: 4 3 Introduction 6 4 Company description and problems of company 7 4.1 Company description 7 4.2 Problems of BTL 9 5 Problem definitions 10 6 Research objectives and research questions 10 6.1 Research objectives: 10 6.2 Research questions 11 7 Research methodology 11 8 Chinese logistics market and development of 3PL 12 8.1 A Chinese logistics market analysis: 12 8.1.1…show more content…
However, as one looks to the future, technology will play an essential role in enabling the desired changes. Technology will help make feasible the new logistic capabilities needed to support future industrial concepts and the type of efficient, responsive logistic system that business forces will demand”.[1] Traditionally, China is a country with relatively weak formal institutions; more importance is given to informal constraints, e.g. personal relationships. As a result, Chinese companies rely upon a network-based strategy of growth, based on personal trust and informal agreements among managers. These are important considerations for managers when forming business relationships and designing their supply chains in China. “Although customers are spending more on average for logistics outsourcing, the percentage of budget devoted to outsourcing logistics, and the services outsourced, haven’t changed dramatically over the past several years. Companies continue their general tendency to outsource relatively commoditized services”.[2] As a result of the market shift from cost-driven to quality-driven in the near future, the strategies for logistics service providers will include: more flexibility, quicker handling, better price stability, higher transparency and increased professionalism, in order to meet the challenges. “The next five years will see a significant increase in outsourcing activity. 3PLs will be the main beneficiaries of this process and as the
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