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Railway Express in unilateral governance

"With trading more and more specific, trading momentum weakened. Reason is that as more and more human and physical assets are dedicated to a single purpose, so does not easily transfer to other purposes, buyer and external suppliers to realize economies of scale. Therefore, the choice of mode of trade depends on which mode to better adapt to the characteristics. "He then said," vertical integration occurred in this case. " When both sides of the transaction is under a common ownership, we can assume that jointly maximize profits. Kos think: "has two factors support in enterprise internal and not market Shang Organization production: found about price of cost lower; for market Shang occurred of trading negotiations and reached a copies independent of contract cost declined", Williamson think Kos created has trading cost economics said, he admitted has people of limited rational but is ignored has due to trading people exists opportunism phenomenon, and led to external contract made risk of situation.
&Nbsp;   and conditions of transactions of logistics resources integration governance structure is:
&Nbsp;   complete and individual logistics services logistics outsourcing is a way of logistics management as opposed to governance and integration, are located in the governance structure of both ends of the spectrum. From the above analysis we can recognize, Shanghai Railway Express is used in market trading, need to deal with a complete, standards, information transparency and the predictability of the results of implementation of the contract and the feasibility of legal proceedings and so on. In practice, however, such contracts are rare in the Chinese logistics market, so completely there are proxy problems of low efficiency of logistics outsourcing. Demand for logistics services logistics outsourcing decision, we must consider the technical efficiency of logistics, but also consider the Logistics Agency efficiency, two of the most efficient logistics solutions are optimal logistics solutions. Williamson also believes that optimal technical non-vertically integrated organizations can reduce efficiency and Agent efficiency, and this seems to be as many of China's logistics system construction of production and circulation enterprises themselves explained.

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