Research on Partners Choice of Virtual Logistics Business for Small and Medium Shipping Enterprises of China

Because of insufficient cash flow and technical issues, small & medium shipping enterprises in China are not able to provide integrated logistics service that leads them to be in a disadvantaged position in the market. This paper introduces the concept of shipping virtual logistics business and establishes virtual logistics enterprises partner choice evaluation index system for small & medium shipping corporations in China according to their current situations and the concept. The index system consist of 5 first-degree indexes which include comprehensive quality, time, quality, operational efficiency and technology, 12 secondary-degree indexes and 23 third-degree indexes. Based on BP neural network, the small & medium shipping corporations can use this system to make scientifically decisions about their future partners. This virtual cooperation will offer external forces and reach the best optimal allocation of resources for every one of them. Finally, an example is addressed with detailed analysis in this paper.