What is logistics outsourcing?

The so-called logistics outsourcing means that a manufacturing enterprise or a sales enterprise entrusts its logistics business to a professional logistics company (3PL) by way of contract in order to concentrate resources, save management expenses and enhance its core competitiveness. Outsourcing is a long-term, strategic, interpenetrating and mutually beneficial way of business entrustment and contract execution. With the acceleration of global economic integration, the application and development of information technology in the field of logistics, the growth of demand for integrated multi-channel markets and the expansion and improvement of service capabilities of logistics service providers, logistics outsourcing services will gradually be recognized, understood, recognized and further adopted by the society. Logistics outsourcing, as an effective means to improve the speed of material circulation, save logistics costs and reduce the backlog of funds in transit, can indeed bring more benefits to both the supply and demand sides. Although both the supply and demand sides have confidence and sincerity, in practice, logistics outsourcing is difficult, often interrupted or even failed. The factors that hinder the development of logistics outsourcing include institutional constraints, human errors, outdated concepts and technical defects. These factors exist in both logistics suppliers and logistics demanders. Logistics outsourcing is a main form of enterprise business outsourcing, and also a new form of enterprise logistics resource allocation under the supply chain management environment. It is completely different from outsourcing and outsourcing in the traditional sense. Its purpose is to develop the supply chain and build the core competitiveness of enterprises through reasonable resource allocation. This paper mainly analyzes the current constraints that affect enterprise logistics outsourcing and how to implement logistics outsourcing.