Governance Structure of Logistics System

This paper, based on theories of contract economics, discusses four logistics governance models, namely multilateral, trilateral, bilateral and unilateral governances. The applicable prerequisites, advantages and disadvantages of each governance mode are explicitly analysed. After taking a closer look into the current status of Chinese logistics governance, the author has the following conclusions: the current co-existence of all logistics governance models is the natural result of China's logistics market development, not only third party or multilateral, but also integrated or unilateral logistics governance models are all fit for the current Chinese logistics development requirements, therefore, such are understandable cases which are following the right track of Chinese logistics market development and are good explanations to the theories provided in the paper as that Shanghai Hualian Supermarkets Co. Ltd. relies on its own to manage distribution service rather than on 3rd party and Qindao Haier Co. Ltd., as a manufacturer, provides third party logistics services not only to the corporation itself but to any other company. It is suggested that Chinese governments of all levels facilitate the development of logistics industry in accordance with the real requirements and status quo of the industry.