ABSTRACT ：Third PartyLogistics (3PL) enterprises in Jiangxi Province are growing upsteadily during the recent years. Evidently the competence of such 3PLenterprises mainly depends on their operation efficiency. Therefore this paper focuseson the research of 3PL efficiency in Jiangxi Province by survey and questionnaire.Firstly, it describes the statue quo of 3PL enterprises in Jiangxi Province.Secondly, this paper discusses the efficiency of 3PL based on Data EnvelopmentAnalysis (DEA). Thirdly it identifies the causes of such circumstance. Lastlythis paper gives some suggestions on improving the efficiency of 3PLenterprises in Jiangxi Province.

KEY WORDS:Third Party Logistics(3PL), Data Envelopment Analysis (DEA), Jiangxiprovince 

0 INTRODUCTION

Nowadays many countriesare putting emphasis on the development of logistics industry on account of itsimportant role in economy at present. Especially the level of logistics industrydepends on the performance of third-party logistics (3PL) enterprises. Therefore,how to improve the competence of 3PL enterprises is the concern from the governmentand 3PL enterprises themselves. Since 2005 some policies and measures topromote the logistics industry have been made by Chinese government. Accordinglyeach province in Chinaalso made the policy to develop the logistics industry, so it is with jiangxi Province. 

1 THE STATUE QUO OF 3PL IN JIANGXI PROVINCE

Since 2003logistics industry has gradually attracted the attention from the provincial governmentto municipal governments in Jiangxiprovince. And the number of 3PL registered in Jiangxi province increased from 300 in 2003to 700 in 2004. Most of such 3PL deal with the business within the YangtzeRiver Delta, Pearl River Delta and other developed regions. Furthermore, thereare 148 logistics enterprises registered in Nanchang, presidial capital in Jiangxi province. Andfour of 148 logistics enterprises rank ahead of others whose annual turnover ismore than 1 billion RMB ^[1]. 

Compared with other provinces in China,logistics industry in Jiangxiis weak owing that the investment in this field is not enough and thecontribution to local gross domestic product (GDP) is small. Depending on theadvantage of location and economy development, some cities, e.g. Nanchang, Ganzhou,Yichun, Jiujiang, Fuzhouand Ji’an are playing a dominant role in the development of logistics industry inJiangxi.

2 EMPIRICAL ANALYSIS ON 3PL IN JIANGXI BASED ON DATA ENVELOPMENT ANALYSIS 

2.1 DEA PRINCIPLE  

Data EnvelopmentAnalysis (DEA) is a kind of useful tool which can analyze the relative efficiencyamong the same types of departments or units. The evaluation among the decisionmaking units is based on "input" data and "output" data^[2]. Regarding the efficiency of 3PL in Jiangxi province, each of the logisticsenterprises can be assumed as a decision making unit (DMU). And each decisionmaking unit has  kinds of "input",i. e.