Nowadays, the importance of logistics management has been increasingly realized in industry and society. However, current educational approaches in logistics management seem unable to effectively equip students with the necessary skills to cope with practical issues after graduation. Recently, contest-based education has attracted logistics management educators’ attention, but how it can be effectively utilized in this discipline is largely unclear. To fill this gap, this study followed a system approach and analyzed the factors influencing student performance in logistics management contests in China using interpretive structural modelling (ISM) and Matrice d’ Impacts Croisés-Multiplication Appliquée á un Classement (MICMAC). The results suggest that the driving forces for improving student performance in contests are the instructors’ encouragement and their previous experience in instructing contests. Also, the contestants’ previous experience in academic contests, team leadership, and effectiveness of communication between instructors and contestants are critical influencing factors. Based on the results, the educational strategies for effective utilization of contest-based education in logistics management are discussed. This study contributes to the existing literature by using a system modeling approach to clarify the mechanisms of contest-based education adoption in logistics management as well as informing university teachers and higher education institutes about strategies to improve their education quality.