Communication is the process of imparting or exchanging information by speaking, writing, or
using some other medium. It can also refer to a letter or message containing information or news.
Communication can be facilitated through means of sending or receiving information, such as
phone lines or computers.
Supply chain management which involves several parties such as: Manufacturers,
Wholesalers, Retailers, Logistics Providers and Consumers, a good communication system
between these parties is very vital for the survival of a business. There are several forms of
communication used in the supply chain including:
1. Radio Frequency Identification (RFID) tags: These are small devices that can be
attached to a shipment to transmit identifying information.
2. Internet of Things (IoT)-enabled devices: These devices send data from the logistics
operation to a central computer system.
3. Portable computers and handheld devices: These allow for two-way communication
between operations personnel, dispatch managers, and on-site logistics staff.
4. Email: This is a written form of communication that takes up to 50% of the workweek
and contributes to the success of an organization.
5. Shared inbox: A shared inbox can help your team navigate all email accounts from a
single platform right from their personal inbox.
In a Supply Chain the forms of communication differ from the modes. Both which are important
terms to note. Forms of communication as mentioned above represent the different ways used to
communicate messages. On the other hand, modes of communication is the means of
communicating, i.e. the medium through which communication is processed. Below are modes
of communication in the supply chain:
1. Portable computers and handheld devices: These devices allow for two-way
communication between operations personnel, dispatch managers, and on-site logistics
staff. Voice communication allows real-time exchange of information between logistics
operations and clients.
2. Routing systems: These computer-based systems assist with routing inventory from one
location to another.
3. Order-confirmation systems: These systems allow businesses to confirm orders with
clients.
4. Paging systems: These systems notify employees of important information.
The benefits or advantages of having a good communication system between parties in an
organization supply chain cannot be undermined. They include:
i. Increased productivity: Effective communication reduces the need for repeated
communication, clarifications, and saves time.
ii. Improved supplier relationships: Integrating effective communication techniques
helps develop strong supplier relationships by promoting trust, improving risk
management, and supporting long-term goals.
iii. Better inventory management: Communication between stakeholders, suppliers,
and your internal team determines positive outcomes. Lack of communication
amongst a team can result in poor inventory management.
iv. Positive company reputation: Effective communication helps your team stay in
touch with stakeholders and suppliers to ensure a positive end-to-end experience. It
also helps avoid negative implications in supply chain management.
To reduce the complexities of a supply chain, communication plays a leading role. Below are
some ways to improve communication in a supply chain:
Be transparent with your workforce
Use technology to your advantage
Act proactively, not reactively
Set clear expectations from the beginning when communicating with suppliers
Identify supply chain planning stakeholders
In summary, effective communication in supply chain management and logistics is crucial for
avoiding loss, maintaining positive relationships, and ensuring smooth operations.
References
https://bing.com/search?q=definition+of+communication
https://gmelius.com/blog/importance-of-communication-in-supply-chain-management-gs
https://www.regroup.com/blog/communication-systems-for-logistics-and-supply-chain-
management/
