Economic analysis of outsourcing logistics of production enterprises

Disadvantages of outsourcing logistics

①Weakened control of logistics. The intervention of the third-party logistics companies, making the manufacturing enterprise's own control of logistics ability to decline, the production enterprise to bear the risk of loss of control of logistics, thus reducing the level of customer service. In addition, when the two sides of the coordination problems, due to the existence of the third party, the two sides are more likely to push each other to the situation, affecting the efficiency of logistics.

②Risk of customer relationship management. Production enterprises are through the third-party logistics to complete the distribution of products and after-sales service, weakening the relationship between the enterprise and the customer, is not conducive to the establishment of stable and close customer relations. And customer information is a very important resource for an enterprise, third-party logistics companies have many customers, they are providing services for the enterprise's competitors, increasing the possibility of leaking business secrets.

③Collateralized operational risk. Logistics outsourcing is a long-term partnership, if the logistics service provider's own business is not good, it will affect the operation of the enterprise. And if the dissolution of the partnership, and will produce higher costs, because the two enterprises stable partnership is needed for a long time to grind.

The use of logistics outsourcing:

Traditionally, logistics outsourcing decision-making basis is whether the enterprise has the ability to self-management of logistics, logistics, total cost and customer service level on the second, if the enterprise and equipment, technology, choose to self-management, in order to facilitate the control; if the enterprise does not have sufficient logistics capabilities, the choice of outsourcing. Outsourcing is usually done by purchasing transportation services from a transportation company or storage services from a warehousing company. These services are generally limited to one-time or decentralized logistics functions, the demand is temporary, and the logistics company will not design services that fit the unique needs of the enterprise according to the actual situation of the enterprise. The degree of impact on the success of the enterprise and the enterprise's ability to manage logistics, he believes that logistics is outsourced if the importance of logistics to the enterprise is high and the enterprise's ability to handle logistics is weak; outsourcing of public *** logistics services if the importance of logistics to the enterprise is low and the enterprise's ability to handle logistics is weak; and adopting logistics self-management if the importance of logistics to the enterprise is high and the enterprise's ability to handle logistics is also high. The model established by Ballow has a major flaw in that it does not take into account the impact of logistics costs and customer service. At the same time, there is no specific evaluation criteria to distinguish between high and low strategic importance and high and low logistics capability.

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