), the second party logistics (logistics for the buyers), and the third party logistics which occupy no place in the business chain, ( Leonard A Schlesinger. 2001) and has no proprietary of the goods from beginning to the ending. The third party logistics provides its professional logistics services through the cooperation with the first party logistics or the second party logistics. The third party logistics does not own goods, nor involve in merchandise. (JuIien Brame, David Simchi-Levi. 2001) It provides the systematical, individual and informational logistics agent service, which is restricted by contract and based on alignment.
In the early stage of logistics, most companies not only did operation and
Marketing but also owned the truck team, storage. (Hokey Min. 2001) The operation model is “big and integrated” and “small and integrated”. So, logistics means costly and capital intensive activity for enterprises. Transportation, storage of material and products and production distribution cost much space, many facilities and personals, and also need the support of software and hardware in computers. ( Brown. R 2001) Because of the current environment restriction of resource, how to improve the utilization rate has become the precondition for the survival of enterprises. Many manufacturing enterprises come back to their key businesses. They concentrate their minds on product innovation, manufacture, marketing and the other businesses in which they have competed advantages. With the development of market competition and deviance of work in the society, many enterprise owners realize that they are not skilled at transportation management and storage management. They begin to leave those businesses, which is not mastered well by them such as transportation and storage, to other enterprises. And so, the third party logistics has come to birth, and has become the cosset of both western theory and operation.
In the modern sense of the third party logistics, it is an industry that has only approvingly 10 to 15 years’ history (Donald Bowersox, David Close, Omar K. Helferich. 2001). As a newly raised field, the third party logistics industry has already occupied a significant proportion in many countries. In the countries of the European Union, the third party logistics basically occupies a proportion of 10% to 35% in the whole logistics market; while in (Lieb, R.C. and Peluso, L. 2000b), 57% of the whole logistics work is done by the third party logistics; in Japan who has the best development of socialized distribution, the third party logistics industry has a proportion of 80% in the whole logistics market. (Nault, B.R., and M.B. Vandenbosch 2000) Through some investigations, we can see that in the first ten years, after coming in the 21 century when China has become a member of WTO, the increase rate of the third party logistics services will be above 10%, while in the period of 2002-2005, the increase rate will reach up to 25% or above every year.
4.2 The Reason Why the Third Party Logistics Come into Being
(1) The birth of the third party logistics is the need of enterprises to reduce cost and improve their core competition capabilities. (Martin Christopner, 2000)
By the influence of out-souring management model, (Vaidyanathan Jayaraman. 2001) in order to strengthen the market competition capability, many enterprises put capital, personnel and resource to their skilled businesses, so as to seek the maximum benefits and the efficiency
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