| Summary: | In today’s Chinese automotive industry, the traditional self-management logistics mode cannot fulfill higher requirement of logistics performance, more and more automotive manufacturers seek to outsource their logistics activities to third-party logistics service providers to optimize supply chain management. Milk run system is a typical example of 3PL mode in automotive industry, which can help firms minimize costs and improve logistics function simultaneously. Given the increasing importance of 3PL, many literatures are concerned about the usage of 3PL; however, few of them discussed 3PL form the perspective of China. Besides, in terms of Milk run system, seldom articles focus on this innovative logistics mode, especially in Chinese automotive industry. Therefore, in this thesis work, authors discuss 3PL from the perspective of Chinese automotive industry, especially focus on the typical 3PL mode—Milk run system, set SGM as case company, aiming at find out the factors that facilitate Chinese automotive manufacturers convert self-management mode to 3PL mode, and then discuss the benefits of professional 3PL services; in addition, authors emphasize on Milk run system and its unique benefits. The research objectives are solved by combining literature review and empirical findings. Relevant literatures are downloaded from Internet and Library’s database. Empirical findings are gathered by interviews and questionnaires. Through comparing literature review with findings, both external and internal factors that facilitate automotive manufacturers change logistics mode are summarized. Besides, some professional 3PL services are identified by literature review and validated by questionnaires. According to different categories of 3PL services, their benefits are discussed from two aspects: supply chain integration and core competence improvement. In addition, the benefits of Milk run system are represented by literature review and then through comparing with empirical findings, some unique benefits are summarized. In this thesis work, the main theoretical contribution is the knowledge of Milk run system, which including its features, implementation processes, and its benefits.
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