Driving Forces of Third Party Logistics Innovation in China

Logistics industry has been set up as a strategic industry in China. With the structural changing of traditional manufacturing industry, the higher pressure will be found in logistics industry. This paper analyzes the driving forces of 3PLs (Third Party Logistics) innovation. Basing on the literature review, a general analytical framework presented which includes the internal and external driving force. Connected with the local 3PLs case analysis, internal driving force should include knowledge, technology, and relationship network and company size, while the external driving force refers to government regulation, competition and manufacturer´s logistics service demand.