[The Benefit and Barriers of Hong Kong Fright Forwarder (3PL)]

By

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation represent my own unaided work, and that the dissertation has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

The main objective of this thesis is to study the progress of local third party logistics (3PL) providers and analyze its development in Hong Kong. The study takes into account the increasing demand for comprehensive 3PL services and capable 3PL providers, responses by 3PL providers to that demand, problems faced by the logistics industry and incentives provided by the Hong Kong Government to promote the industry. Based on the findings of the case studies, comparisons were made on 3PL classifications, relationships between 3PL providers and users and services offered. A mail survey was also carried out to strengthen the findings from the case studies. The study found that the majority of 3PL providers in Hong Kong are still of the standard 3PL type, offering mainly traditional services such as transportation, warehousing and customs clearance. The demand for Third Party Logistics (3PL) services is growing very quickly. The Closer Economic Partnership Arrangement (CEPA) creates new opportunities for Hong Kong 3PL providers to operate their wholly-owned companies in China. However, due to different culture and business environment, many Hong Kong 3PL providers experienced hardship to expand their business in China. This paper presents a case study of how a Hong Kong 3PL provider started its business in Shanghai. The study explores the challenges that the selected 3PL provider faced and how the 3PL provider turned those difficulties into opportunities. The study provides useful reference to relevant researchers and firms.

Table of Contents

CHAPTER 1: INTRODUCTION6

Background of the study8

CHAPTER 2: LITERATURE REVIEW10

Theoretical framework10

Defining TPL11

CHAPTER 3: METHODOLOGY14

Research Design14

The Case of Hong Kong 3PL Provider14

The conceptual model for 3PL15

The case study17

Company background18

CHAPTER 4: DISCUSSION AND ANALYSIS19

Case analysis19

Strategic planning20

Inventory management20

Transportation planning20

Capacity planning21

Benefit and Barriers for TL Prospects22

Benefits22

Barriers23

Benefit and Barriers of 3PL Industry in Hong Kong24

Benefits24

Barriers26

CHAPTER 5: CONCLUSION29

REFERENCES32

Chapter 1: Introduction

After Hong Kong's financial restructure in 1986, Hong Kong supplied numerous inducements to boost foreign buying into in Hong Kong that assist to become a up to date country. The World Bank (2001) forecast that by 2020, Hong Kong will become the world sixth biggest dealing entity, over taking Germany and Japan. Many foreign businesses have involved in going into Hong Kong's market. Engaging Hong Kong's market is not so straightforward, it was because there are numerous trade guidelines and directions that restrict all foreign businesses to run their enterprise in Hong Kong. Since 1 July 1994, under the Foreign Trade Law of the People's Republic of Hong Kong, foreign businesses should got a permit from the Ministry of Foreign Trade and Economic Co-operation in ...