To overcome the challenges faced by the small and medium-size companies in providing the logistics service, the Taiwan government has promoted and encouraged setting up the partner-like outsourcing relationship for the logistics service operations since the mid-1990s. That is, each company doesn��t need to own or perform all logistics service operations by its own. The facilities and know-how technologies can be shared through cooperative relationship. Thus, the capital investment for each company would be reduced, and the facility utilization would improve considerably. However, the achievement was not impressive until now and there was no solid methodology available to guide the path. Therefore, this research presents an integrated framework to overcome the deficiencies. 
First, while the partner-like outsourcing relationship could increase the resource utilization and reduce the individual investment burden, it also incurs additional problems and requirements unseen before. They might outweigh the benefits obtained. This research utilizes the fish-bone diagram, SWHD diagram and five basic requirements as an integrated tool to identify if it is appropriate and necessary to establish the partner-like outsourcing relationship. Secondly, a methodology is proposed to help select the partner, decide on the items of cooperative operations and cooperative structure through a three-step selection process. Thirdly, the transition process to establish the partner-like outsourcing relationship can be demonstrated through a generic example.
In summary, this paper presents a useful framework to identify the situations to build up the partner-like outsourcing relationship and demonstrate the design process to select the cooperative partner and establish the cooperative form. The results obtained in this research are also applicable to other countries facing similar situations.

Dr. Lin graduated from Georgia Institute of Technology in 1995. His Ph.D. thesis was to develop an integrated framework for the plant layout evaluation problem. After graduation, he put research focus on the logistics facility planning, purchasing and supply system management, and supply chain management. During the past five and half years since his graduation, Dr. Lin has been involved in over ten research projects with funding from government and industry. Some of his research results are included in his first book Facility Planning and Distribution Center Design which will appear on May 2001 (Chinese edition).