Abstract: This paper analyzes,a logistics outsourcing system which coasists of a supplier,a manufacturer and a third-party logistics supplier(3PLs).Based on coordination work,an incentive contract model is presented,while the affections of information sharing are considered.When the principal prefers the higher efforts,information sharing could create more chance for the principal to acquire more private information to monitor actions of the 3PLs.It encourages the 3PLs to work in principal's interest.The paper ends with a discussion of improvement of the model and directions for future research.

Key words: supply chain, information sharing, logistics outsourcing, incentive contract