Global competition and growing economy had made manufacturing and retailing industries to outsource their logistics activities to third party firm. Outsourcing logistics is a management where one organization seeks another organization to perform non-core activities like transportation, warehousing, packing, distribution and information service etc.
Many companies had adopted new distribution strategies in order to maintain their business status over global market. These concepts increased companies focus on their core business value and distribution activities.
Third party logistics has become more important because of growing global economy and the growth of more logistics providers developed strong approaches, which increase core competences value and beneficial long-term relationship (Rabinovic et al, 1999).
Outsourcing activities are growing has an important strategy to control organizations resources and skills which will helps the company to attain success against their core competitors. Therefore, it became growing aspect in global trade economy (Quinn et al., 1994).
Outsourcing activities are increasing has an important strategy to control organizations resources and skills. Logistics is now an important part of economy and business.
China has open market for every product and it has global supply chain as the largest manufacturing range of products and services such as apparel, electronic and household appliances etc. In fast growing environment, many companies in china are facing decision problems like outsourcing in global and domestic market. Term ‘outsourcing’ in this paper clearly denotes logistics activities of manufacturing companies’ forecast goods from third party suppliers, which are located within or outside the country.
Globalization and continuous development in information systems, organizations started to improve their responsiveness and competiveness according to market demand. 3PL activities are depend on factors and business process, such as geographical factors, duration of contract, financial allocation to 3PL providers and commitment level. This paper combines traditional problems and mitigation
factors. Then, Based on some case studies, theoretical experiments are performed to validate the effectiveness of the proposed model and efficiency of the proposed method of solution.