more than two decades of economic reform and transition to market economy has brought China unprecedented economic growth. With the fast growth in China's economy and China's accession into the world trade organization (WTO), the demand for logistics services haas been growing significantly in China, and the logistics industry in China is set take off . The total logistics value has grown by 29.9 percent year-on-year (China Distribution & Trading , 2005 ). New modem facilities such as logistics parks, distribution center and warehouses are being built at a record setting pace. Many logistics companies have invested extensively in information and logistics technologies . As China continues to develop into a global manufacturing factory, China's logistics industry will play an important role in the global supply chain. One key to effective supply chain is to make the logistics function more efficiently ( Bowersox et al.,2002). The globalization of supply chain has prompted many firms to develop logistics as a part of their corporate strategy. To deliver products quickly to customers, many companies seek to outsource their logistics activities to logistics service providers. This reflects the trend of using logistics service providers to satisfy increasing need for logistics services