China Third Party Logistics Analysis

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Business Logistics Management

Hogeschool van Arnhem en Nijmegen HAN University.2009


1 Acknowledgements3
2 Executive summary:4
3 Introduction6
4 Company description and problems of company7
4.1 Company description7
4.2 Problems of BTL9
5 Problem definitions10
6 Research objectives and research questions10
6.1 Research objectives:10
6.2 Research questions11
7 Research methodology11
8 Chinese logistics market and development of 3PL12
8.1 A Chinese logistics market analysis:12
8.1.1 China economy overviews:12
8.1.2 Definition of the logistics industry and forms of businesses:13 8.1.3 The necessity of developing China’s international logistics industry15 8.1.4 The status Quo of China’s logistics industry:16 8.1.5 The existing problem of international logistics industry in China17 8.1.6Opportunities and barriers in logistics industry:19 8.2 Analysis of 3PL development in china21

8.2.1 Basic principle and functions of 3PL:21
8.2.2 Overview of third party logistics in china:23
8.3.3 Drivers for the development of third party logistics24 8.4.4 Potential business opportunities for third party logistics in china25 8.5.5Importance of reasons customers like logistics services provided by 3PLs.27 8.6.6 Obstacles to third party logistics in china28

9 External analysis30
9.1 DESTEP analysis33
9.2 Porter five forces analysis:41
9.3Competitor analysis:45
10 Internal analysis49
10.1 7-S Model analysis49
10.2Company performance analysis51
10.3 S.W.O.T analysis of BTL:53
10.4 Suggestions to overcome the weakness and threats55
11Literature view57
12Recommendations and conclusion59
12.1 Recommendations59
12.2 Conclusion61
14 Appendix62

1 Acknowledgements

This study is funded by the BETTER LOGISITCS COMPANY-CHINA. I would like to thank senior manager from the department of sea and air transport for the critical design of this report. I thank my friends from industry who arranged my visit to their companies and shared their industrial insights with me. Special thanks go to MR OLIVER-lecture from ARNHEM BUSINESS SCHOOL-HOLLAND for invaluable inputs in the design and revision of this report.

2 Executive summary:

This report is an analysis of the current state of the logistics industry in China. It looks at broad current trends within the Chinese economy; issues within a logistics firm ‘Better Logistics’ including shipping, road, rail, river, airfreight and warehousing. This report also examines current central government policies toward the development of the logistics industry and the impact of key economic agreements such as China’s WTO commitments on the Chinese logistics industry. This report also highlights the broader near-term challenges that currently face the Chinese logistics industry and the more medium-term challenges the logistics industry and China, as a whole, must overcome to ensure future development in the light of a firm named ‘Better Logistics’. the report also conduct a internal and external analysis of BTL, scrutinizing what is advantages and disadvantages of BTL, and comes up with solutions to overcome it . By drawing on the experience of those who are already succeeding or enabling others to succeed in seizing new opportunities within China’s burgeoning logistics market, this report is intended as a resource for all those currently undertaking, planning or considering opportunities within the Chinese logistics market. It is, by and large, a management task: changing the way logistic functions are accomplished, and revising traditions, cultures, and organizational prerogatives that...
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