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third party logistics. that means the satisfactory level in China is rather low.( McCann Philip. 2001) 5.0 Relationship between Manufacturing Industry and the Third party Logistics As for modern manufacturing industry, manufacturing logistics is becoming the important component that could increase the core capability for the competition, and attracts more and more attention. The cooperation between manufacturing companies and the third party logistics enterprises may decrease the cost; lower the risk; shorter respond time; increase competition capability. In the value chain of manufacturing, logistics cost is seen as one of the highest cost in various activities, merely lower than material cost and distribution cost. (Philip B Schary, Tage Skjott-Larsen. 2001) Most enterprises surprise at the proportion of logistics cost in the whole cost. That is to say, reducing logistic cost plays a key role in terms of achieving and keeping the company competing predominance. Manufacturing enterprises employ the third party logistics services; the professional managers and technologist sufficiently use logistics facilities and advanced information system, they use their abundant experiences to achieve the best performance. Such enterprises may not keep warehouse, trucks and other logistics facilities; the investment for logistics information system could become the third party logistics enterprise expenditure. So many decreases may happen in manufacturing companies, such as investment and logistics operation cost, and directly involved personnel. That may reduce some wages; enhance bill dealing efficiency; lower bill dealing cost. And such enterprises also strengthen the control of warehousing; decrease stock; cut stocking cost. Manufacturing enterprises use the distribution network of the third party logistics companies to implement integrated distribution, this has greatly improved the efficiency of transportation, and has also reduced the transport costs. All theses are the cost values, which could happen by the employment of the third party logistics services. While for the individual enterprise, it has many benefits to set up a integrated logistics cost calculating system. Such system factually represents the benefits, which are brought by the operation of logistics control or the employment of the third party logistics services. (Y. Sheffi, 2000) Such kind of system makes the logistics activities of manufacturing enterprise become more and more reasonable. If enterprises make their own logistics activities, they may face two main risks: the first is the investment risk; the other is the stock risk. If those enterprises enjoy the third party logistics services to make professional distribution, because of the improvement of distribution, the floating rate of stock may increase. So those enterprises could reduce their inner safe stock, and then the capital risk of such companies could fall down, or they may distribute part of such risk to the third party logistics enterprises. Nowadays, the competition between enterprises mainly focuses on the time control and activity speed. Providers of the third party logistics services may fleetly make responses to customer’s requirements owning to the advantages of specialization and scale effect. The use of the third party logistics services helps companies totally devote themselves to how to improve the competition capability. The core ability of manufacturing enterprises is producing