SCM -- Utilizing Emerging Communication Technologies

Effective Supply Chain Managers know that supplier communication is an essential element of their job and they seek to master the various tools that are increasingly available to them.

We begin by dividing supplier communication into two realms:

Technical Communication and Managerial Communication

Technical Communication

Technical Communication includes the sharing of concrete factual information such as drawings, specifications, RFQ's, quotes, PO's, shippers, invoices, and remittances.

Methods associated with Technical Communication tend to be "half-duplex", i.e. information is transmitted by only one party at a time while the other party (or parties) receive it.

These tools are frequently substitutive. As new technologies emerge, they largely replace their predecessors.

Consider how Purchase Orders have been issued and acknowledged over the years. In the 50's, 60's, and 70's, they were hand delivered or mailed. In the 80's they were faxed. In the late 90's and into the 2000's, they were emailed. And most recently, Supplier Portals have emerged as the favored communication method for these tasks.

Mail supplanted Hand Delivery. Faxing supplanted Mail. Email supplanted Faxes. And so on...

In each of these cases, although there have been overlaps and remainders, eventually the emerging technology dominated the communication space — at least until the next contender came along.

Navigating through emerging communication technologies in the Technical Communication arena is analogous to crossing a stream by stepping on floating logs. As a new log comes within reach, you carefully step onto it while keeping one foot on the old log. Then, as you gain confidence in the new log, you commit to it with both feet and remain there until the next log floats near.

Managerial Communication

Managerial Communication includes the sharing of plans, priorities, problems, action items, and resolutions.

The most effective modes of Managerial Communication are " full-duplex" , i.e. multiple parties can transmit and receive information simultaneously (or nearly simultaneously).

Back-and-forth information flow allows for real time feedback and reorientation within the scope of the correspondence thus allowing for the most effective planning, negotiation, problem communication, and issue resolution.

Emerging technologies in this space are frequently additive. They augment rather than replace predecessor technologies.

The simplest and oldest mode of Managerial Communication is in-person conversation. Such interactions have been happening since the very first business transaction — in fact since the very first interpersonal transaction of any kind.

Around the turn of the 20th Century businesses aggressively adopted the telephone as a means of communication. This recently invented device changed human communication forever, but of course it never fully replaced in-person conversations.

In the 90's came email. Although not fully interactive, the rapid delivery and response features of this technology made it seem almost like "full-duplex", and again, businesses aggressively adopted it. However, like the telephone before it, email augmented but did not replace its predecessors..

Texting came into prominence for businesspeople in the last decade… and once again… served as an addition, not a replacement, within the Managerial Communication realm.

The latest communication technology to gain widespread use is, of course, Teleconferencing.

Although the AT&T Picturephone was introduced at the New York World's fair in 1964, it is only the recent emergence of inexpensive computers and ever-expanding bandwidth that has enabled this technology to come into its own as an effective tool for business.

Each day more and more Supply Chain Managers are finding teleconferencing to be indispensable for managing their business. However, it is unlikely that even this amazing technology will fully displace any or all of its predecessors.

In short, the progression of technology associated with Managerial Communication has shown itself to be collective rather than sequential. The appropriate analogy for this is that of an ever growing tool box.

What does this mean for today's Supply Chain Manager?

Today's Supply Chain Manager needs to recognize communication tools as they emerge and understand the types and modes of communication for which they are best suited.

It is especially important to realize that Technical Communication tools are generally substitutive and Managerial Communication tools are generally additive.

In the case of Technical Communication, Supply Chain Managers need to lean into "moving on" when the latest technology is available.

No manager or organization wants to be like the ones that were still faxing PO's 5 years after the world progressed to email. Keep up, adopt the new when it's ready for prime time, and move on from the old.

In the case of Managerial Communication, Supply Chain Managers should be looking towards adding new technology while keeping the best of the existing technology. In this way they compile a fulsome toolbox from which to select the most appropriate tool for each task.

They should not get drawn so much into emails that they neglect picking up the phone to call their supplier.

They should not get so overtaken by teleconferences that the overlook the critical importance of live supplier visits to see what is truly happening at the supplier level.

When considering Managerial Communication technologies remember the old expression: "Make new friends but keep the old. One is silver and one is gold."

Supply Chain Management is one of the most rapidly changing fields in industry. It is easy to get overwhelmed with new technology. The key to success is identifying new technologies, understanding where they fit into the overall communication requirements of your company, and adopting and implementing them accordingly.