How to choose logistics operation mode?

Self-operated logistics is a basic way for shippers to continuously optimize the logistics operation process by using the existing logistics resources, advanced logistics management system and logistics technology, and provide efficient and high-quality services for the production and operation process. From the specific operation point of view, it can be divided into traditional self-support logistics, SCM logistics, TPL self-support logistics. Nowadays, many enterprises are still using the traditional self-supporting logistics, but with the emergence of advanced logistics mode, there will be more and more enterprises to choose a more suitable logistics mode for the development of enterprises, today xiaobian for you to introduce how to choose logistics operation mode? Take a look.

First, the impact of logistics on corporate profits

Logistics for enterprises, in addition to logistics costs, but also to the business operation of enterprises will bring a positive impact, that is, to stimulate consumer demand, increase sales. For enterprises, they should be concerned about the impact of logistics on corporate profits, that is, the difference between sales volume and logistics cost. When choosing self-supporting or outsourcing logistics business, enterprises should consider the contribution of logistics to corporate profits and conduct systematic demonstration.

Second, the importance of logistics in enterprise strategy and enterprise logistics management ability

The importance of logistics to the business operation of enterprises and the logistics management ability of enterprises affect the important dimensions of self-management or outsourcing of logistics of enterprises. In the two dimensions, the decision states of managers are shown in Figure 2-3. The importance of logistics in enterprise strategy depends on whether logistics is the core competitiveness of enterprises. For example, for e-commerce enterprises, the effectiveness of their business operation ultimately depends on the logistics management ability behind them, which is directly related to consumer experience and satisfaction. Therefore, logistics is the core competitiveness of e-commerce enterprises. For OEM(original equipment manufacturer), its business focus is on manufacturing and quality control, logistics is not its core competitiveness.

If logistics plays a key role in the enterprise strategy and is of high importance to the enterprise’s business operation, but its own logistics management level is low, for such enterprises (in the ⅱ range), looking for logistics partners will benefit a lot in logistics facilities, transportation capacity, warehousing capacity and logistics management skills. For enterprises with high logistics level (in the ⅳ range), which play no key role in logistics strategy, they can find partners to share logistics resources, become the leader in partnership, gain scale efficiency and reduce costs by increasing material flow. Enterprises in the range of ⅱ and ⅳ can choose to establish logistics alliance.

If logistics plays a key role in the strategy of the enterprise and its own logistics management ability is strong (in the range ⅰ), it can adopt self-logistics. For those enterprises (in the ⅲ range) that logistics is not very important in enterprise strategy and lack of their own logistics management ability, third-party logistics is the best choice. They can reduce logistics cost and improve service level by taking advantage of external logistics resources.

In the logistics operation of enterprises, in addition to following the combination of the above factors, we also need to consider other factors and use them flexibly. Enterprises with strong logistics capacity in one region and weak logistics capacity in other regions tend to choose the combination of self-management and outsourcing. For example, enterprises may have strong ability in logistics, transportation and storage, but lack of ability in logistics and distribution. Therefore, they tend to choose self-supporting transportation and storage business and outsource the distribution business.

How to choose logistics operation mode?Third, the logistics characteristics of enterprise products

The product’s own logistics characteristics are also an important factor affecting enterprises to choose self-supporting logistics or outsourcing logistics. For example, for the transportation of bulk industrial raw materials and the distribution and distribution of fresh products, relatively fixed professional logistics service providers can be used due to the high cost of self-established logistics. For technical logistics services (such as port logistics), enterprises should adopt the principal-agent mode; For manufacturers of non-standard equipment, logistics should also be handed over to professional logistics companies.

When choosing logistics operation mode, logistics companies will consider what kind of profit logistics will bring to the enterprise, and choose the appropriate logistics operation mode according to the enterprise’s own ability and characteristics.

4. Analysis of logistics operation mode of multinational corporations

At present, logistics operation mode can be roughly divided into three types, namely self-operated logistics, third-party logistics and fourth party logistics. Each logistics operation mode has its own advantages and disadvantages, so enterprises must choose their own logistics operation mode according to their own business characteristics and strategic decisions.

Logistics operation mode classification of multinational corporations and its advantages and disadvantages

1. Self-sufficiency and self-logistics mode

Self-run logistics mode includes the first party logistics mode and the second party logistics mode, refers to the social logistics also don’t have the ability to integrate enterprise supply chain logistics each link before and exercise the management functions, by supplies provider or purchaser the use of existing logistics resources or on the basis of the integration of social logistics resources to build own logistics system, so as to solve the problem of the space displacement of materials required.


(1) Self-operated logistics enables multinational enterprises to effectively control the whole supply chain and reduce various transaction costs, so as to ensure good cooperation and cohesion among various links of enterprises, thus ensuring the steady development of enterprises.

(2) Self-operated logistics can avoid the disclosure of business secrets of multinational companies.


(1) The self-operated logistics mode increases the operating costs of multinational corporations. In the mode of self-run logistics, warehousing, transportation facilities, logistics information transmission system and the corresponding human resources will occupy a large amount of capital, which not only increases the cost of the enterprise, but also cannot ensure the efficient, accurate and timely information transmission. Especially for some general strength of multinational enterprises, these defects of self-logistics mode is more prominent.

(2) Self-operated logistics mode has great regional limitations.

2. Third-party logistics mode of logistics service outsourcing

The third party logistics mode refers to the operation mode in which the third party other than the supplier and demander of material flow completes the logistics service.


(1) Third-party logistics can help multinational companies reduce costs and improve their core competitiveness. The use of third-party logistics by multinational companies can effectively reduce the capital occupation and management cost under the mode of self-management logistics, so that enterprises can focus on their core business, so as to improve their core competitiveness.

(2) Third-party logistics can help multinational companies reintegrate supply chains and expand international business. With the deepening of economic globalization and the rapid development of information science and technology, the third party logistics to provide warehousing, transportation, packaging, distribution and other basic services at the same time, also continuously explore provide logistics system design and customer relationship management (CRM) high value-added services, to multinational companies in the supply chain integration provides a good opportunity. In addition, multinational companies can also use the international marketing channels of third-party logistics companies to quickly enter the international market and seize market opportunities.


(1) Third-party logistics cannot fully meet the needs of multinational corporations for globalization, diversification and personalized logistics services. Third party logistics enterprises are mostly converted from traditional transportation and storage enterprises. Although they are good at the actual operation of logistics process, they lack the strategic grasp of the whole supply chain process and the relevant technology of integration, so they cannot meet the demand of the whole logistics process outsourcing of multinational companies. In addition, due to the lack of specialized knowledge and talents, third-party logistics can not meet the special requirements of multinational companies for specific product transportation and circulation processing.

(2) Third-party logistics may lead to leakage of business secrets of multinational enterprises. Due to the information resource sharing, many third-party logistics enterprises will master many business secrets of multinational companies. If the third-party logistics enterprises do not manage well or do not abide by business ethics, it will lead to the leakage of business secrets of multinational companies.

(3) Third-party logistics may lead to business loss of multinational enterprises. With the gradual deepening of the participation of third-party logistics enterprises in the whole supply chain, multinational companies will gradually deepen their dependence on them, which will lead to the loss of control of part of the management of multinational companies.

3. Fourth party logistics mode of integrated logistics services

The fourth party logistics mode is a kind of modern logistics operation mode, it refers to the customer to the entire supply chain logistics management outsourcing to integrated management, information technology, the third party logistics operation knowledge ability of the fourth party, shall be formulated by the overall solution, a set of supply chain and is responsible for the implementation of the solution process monitoring and evaluation, in order to improve the operation performance of a supply chain


(1) The fourth Party logistics can provide high-quality package logistics services, so as to improve the core competitiveness of multinational enterprises. The fourth party logistics is the management and integrator of the third party logistics, has good comprehensive quality, integration technology and strategy and global expansion ability, can provide supply chain solutions including evaluation, design, formulation and operation of the whole supply chain process. This not only saves a lot of operating costs for the enterprise, but also ensures that the products can be delivered to the demanders faster, better and cheaper, thus improving the core competitiveness of the enterprise.

(2) The fourth party logistics can break regional blockade and promote the globalization of multinational enterprises. Based on the powerful information technology support and wide service network covering ability, the fourth party logistics can maximize the integration of the regional, national and global logistics resources, through the establishment of supply chain alliance, and we will break industry monopolies, eliminate the phenomenon of department division and regional blockades, can make the enterprise at a lower cost, faster to achieve logistics globalization strategy.

(3) The fourth Party logistics realizes the optimization and reengineering of supply chain. The fourth party logistics gathers the third party logistics, consulting companies, IT companies and other logistics related enterprises, which can provide a set of logistics service solutions including service content, market strategy and customer service, so as to optimize the whole logistics service process. And the fourth party logistics in its center, customer demand as the power source of the premise, to achieve the re-engineering of the supply chain, it is worth mentioning that the fourth party logistics can not only achieve the optimization and re-engineering of the industry supply chain, but also to achieve the optimization and re-engineering of the inter-industry supply chain.

(4) The fourth party logistics breaks the barrier of the joint development of manufacturing and logistics industry. First of all, as a supply chain integrator, the fourth party logistics can make manufacturing enterprises and logistics enterprises from the operational process, organizational structure, information network and corporate culture in the professional division of labor on the basis of multi-line integration, sharing information, so as to jointly develop supply chain solutions. Secondly, the fourth party logistics has good resource integration ability, supply chain governance ability and relationship and organization ability, can provide more value-added services, and then create more profit growth points for the manufacturing and logistics industry. Finally, the fourth party logistics can provide comprehensive logistics services based on global perspective, causes the manufacturing industry and logistics industry under the condition of without increasing capital investment, fully utilize mining enterprises related logistics service resources, increase the varieties of logistics service, enlarge the geographic coverage of logistics service, so as to realize the coordinated development of manufacturing and logistics industry.


The relationship between the fourth party logistics and customers and the third party logistics is difficult to coordinate. Because the fourth party logistics has no fixed assets to guarantee, it is difficult for enterprises to trust the control of supply chain logistics to its management. In addition, the fourth party logistics for the third party logistics is also one of the competitors. Due to the relationship of information sharing, the third party logistics concerns that the fourth party logistics will steal their customers after mastering their own service price and service characteristics, so it is difficult to coordinate the work well.

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