Abstract:  By analyzing the operations of third party logistics (3PL), an index system for operation safety evaluation is built. Then, based on the grey system theory, a comprehensive grey incidence degree model is developed. With this model, effect of 19 factors on safety of the five operations is analyzed. By this analysis, the correlation degree between various factors and the total failure rate is obtained. This clearly shows the critical factors that cause a failure for a single operation and for the five operations as whole. The proposed method is helpful in operating a third party logistics company.  

Key words: third party logistics, safety evaluation, grey incidence degree