Integrated Distribution Services: An Innovative Mechanism and Case Study

With the globalization and informationization, outsourcing services has become the new bright spot in the economic globalization. In the meantime, a number of service enterprises which provide high value-added services appear. The main purpose of this paper is to do both theoretical and empirical researches on the innovative mechanisms of integrated services. Firstly, in terms of the theory of supply chain management, the paper puts forward analytical framework of integrated distribution services innovation, which involves five ranges: concept innovation, management innovation, service innovation, technological innovation, and resource allocation innovate ion. Secondly, taking Hong Kong Li & Fung Group for example, the paper analyzes three major businesses which consist of contract manufacturing, marketing, logistics services, and finds that integration distribution service providers are different from traditional distributors in business philosophy, internal and external co-operation mechanism, service content and the application of information systems. Hong Kong´s Li & Fung Group´s experience is important for Chinese enterprises to learn.