Improvement of the disadvantages of traditional logistics

The supply chain of traditional logistics system is not particularly smooth, and there may be problems in a certain part or link, that is, short circuit. In addition, this kind of inventory cost is relatively high, and the response speed of logistics system is relatively slow, which leads to a corresponding increase in cost. In the traditional logistics system, each department is fragmented and unable to cooperate with each other, which makes the logistics cost difficult to control. The main energy of logistics focuses on warehousing and transportation, and does not involve the reaction speed of the whole supply chain. In the process of mutual coordination, everyone looks at their own interests and does logistics work for the benefit of the department. These are the disadvantages of traditional logistics.

Supply chain short circuit

Slow market reaction

It is not conducive to the control of total logistics cost.

There are conflicts of interest in inventory management.

Improve the traditional logistics system

The biggest drawback of traditional logistics system is that the supply chain is short-circuited, and the whole supply chain is not very smooth. The inventory of suppliers and point of sale is often airtight, and the inventory is opaque in the whole supply chain and cannot share information. This will lead to a backlog of inventory on both sides, or a lot of inventory in one place and a shortage in the other. Some people think that inventory is a trade secret, in fact, inventory should not be a secret, and the inventory of the whole supply chain should be transparent.

To make inventory transparent, you can use inventory software to enjoy information and realize rapid response. Only in this way can the cost be the lowest and the efficiency be the highest.

To improve the traditional logistics system, we should attach importance to the management mode called "one umbrella management" abroad. The most taboo in management is multi-head leadership. Leaders have different opinions, and subordinates can't do it. I don't know what to do. Umbrella management means that you have to start from one place, only listen to the command of one person, and one person has only one boss, so the authority is very clear. Therefore, the influence of individuals outside their functions and powers, or the orders of teams of other informal organizations, will have a unified command system after umbrella management.

Transparency of supply chain inventory

Use inventory software to respond quickly

Organizational Reengineering and Process Reengineering: An Umbrella Management