Logistics and IT Services in China

Abstract

Outsourcing has been one of the most popular activities among enterprises worldwide for nearly a decade. By outsourcing non-core technologies to professional manufacturers abroad, firms can minimize their operating costs. After its admission to the WTO, China has attracted an increasing number of investing foreign enterprises. The local enterprises in China are facing a more complicated environment. To serve different customers both at home and from abroad, they will restructure their organizations and adjust their operation strategies. They also consider if the external resources and facilities can meet their needs. Complete development of logistics infrastructures in China will be the key to successful operations for the local enterprises. Our research discusses logistics services provided by outsourced suppliers in China for domestic and foreign customers and how the need to serve different customers affects their organization. This study is from the viewpoint of outsourced suppliers in China, by attempting to understand customer logistic service criteria, IT services, customer selection criteria, and the difficulties and future challenges facing Chinese enterprises.