What are the problems of traditional logistics management

There are three major drawbacks to traditional logistics management:

(1) Large Inventories Inventory buffers in the traditional supply chain allow manufacturers and retailers to stock certain products, which are the cause of stock-outs in other parts of the supply chain. In the supply chain, the inventory problem is amplified when warehousing and stocking points are not consistent across companies. Because every participant in the supply chain has inventory, coupled with inventory management failures and the interactions of the various links in the supply chain, by the time the goods reach the last link in the supply chain, there is virtually no relationship between inventory levels and actual demand for the goods.

(2) Slow response The looseness of traditional market distribution channels is inherent in the fact that it is impossible to meet the sales demand for hot products due to the disconnect between the reordering process in the supply chain.

(3) Lagging business processing Traditional logistics management handles products in a single way, leading to slow turnover and circulation of goods when companies have similar inventory levels regarding volatile and non-volatile products and distribute them through the same logistics network.