What Is Outsourcing Of Logistics Functions?

The outsourcing of logistics functions mainly includes order management, reverse logistics management, pportation and storage management.

The outsourcing of logistics functions includes only the third party and the fourth party logistics which provide logistics outsourcing services to customers on the IT platform.

At present, there are more outsourcing functions in China's pportation and warehousing management, such as the order management covered in the case will make the cooperation between logistics providers and customers more closely.

According to Bibb's estimate, the scale of China's logistics function outsourcing industry reached 440 million in 2006, and in the next four years, the logistics function outsourcing market will continue to develop rapidly.

Case: in 2003, Red Bull beverage, which had worked with Bao for 5 years, encountered new problems.

At that time, although the Red Bull beverage company understood the sales situation of the whole country, it did not understand the reaction of stock and market terminals at any time.

So the Red Bull supplies the third party logistics with the supply of treasure, and outsource all the logistics business of all the 29 regions and warehouses in the country.

On the basis of warehousing and logistics, Bao has made a set of order management system for red bull for logistics business, integrating the order process of Red Bull and taking charge of all logistics links of Red Bull.

After the shipment of the Red Bull factory, the company is responsible for delivering the goods to 20 regions of the country. The warehouse is managed by the management of the treasure and distributed according to the Red Bull directive.

At present, Bao also further integrates supplier links and ERP, with a view to further improving system efficiency.

Through the docking of the Red Bull logistics system and its own system, the red bull can always grasp the response of the terminal stores to the products.

So as to provide strong support for enterprise's production decisions, effectively reduce inventory costs, and greatly enhance the market response speed and competitiveness of Red Bull.