The infant formula industry is the most potential and develops quickest in China food industry. Since it's not a the high technology to produce milk powder, and there's no significant differences in taste and quality, the sole price competition among enterprises leads to lower and lower profits. And nowadays the competition in milk powder market becomes more and more fierce, and changes fast, enterprises are unable to keep advantages in every business, they have to focus their resources and energy on the core business, in which way they maintain advantage and keep moving. Therefore, some infant formula enterprises regard logistics outsourcing as an important part of their logistics strategy.
Firstly this paper presents an introduction of the current status of the milk powder industry to figure out the importance of logistics outsourcing to milk powder enterprises. Secondly, studies relevant theories and methods of logistics outsourcing, introduces several basic concepts of it and analyzes its advantages and disadvantages. Thirdly, analyzes the current status and problems of logistics outsourcing of milk powder enterprises, and propose logistics outsourcing management strategy for milk powder enterprises. And then analyzes T company, studies logistics outsourcing strategy with practices. Finally, comes up with a conclusion that the key problem of logistics outsourcing is how to lower the risks for maximum, gain more cost and competition advantages, in which way strengthens core competitive
KEYWORDS:Logistics in infant formula enterprise, Logistics outsourcing, Logistics management strategy