Communication is the Alpha and Omega in Logistics

No delivery reaches its destination without clear communication. Supply chain management and logistics require clear instructions and efficient information flow.

Human communication is natural, but nowadays, artificial intelligence also plays a role—for example, handling material orders and payment reminders over the phone.

Example: “Hello, has everything gone well with order number 230303?

We noticed a missing payment in our system. Do you need additional support?” The sound quality and ability to hold a conversation are almost lifelike.

What Does Communication Cover?

The examples below are just a fraction of what communication can encompass. Communication is much more than just speech—it’s a combination of various communication forms.

Here are a few examples:

• Speech: Conversations over the phone, face-to-face, or in Teams-meetings.
• Written communication: Orders and delivery confirmations via email or WhatsApp, arrival notifications by text message, and reports on customer feedback.
• Non-verbal communication: Gestures and facial expressions, such as a thumbs-up from the driver or a smile from the customer, indicating the message has been understood.
• Visual communication: Infographics in the warehouse or charts explaining the procurement process.
• Digital communication: Electronic waybills and EDI (Electronic Data Interchange) data transfer.
• Documents and instructions: Process descriptions, contracts, and standard operating procedures (SOPs).

What Is Successful Communication in Logistics?

The answer is not silence! While silence can mean everything is working as it should, it can also indicate that things are not up to date, potentially leading to errors. For instance, when there is a new employee or assumptions are made.

Good communication starts at the time of order placement: providing the customer with the necessary delivery information and where to find more details.

In the warehouse, clear processes support operations, such as SOP documents outlining procedures and contact details. Maintaining these guidelines may seem laborious, but they enhance operations and improve company efficiency.
A practical approach has often been to create a simple one-page PDF with agreed-upon details and contact information.

Examples of Successful Communication in Logistics

1. Customer Service and Warehouse: Customer service informs the warehouse and the transport company about an urgent spare part order. The warehouse prepares the shipment immediately, enabling the transport company to deliver it quickly. The customer is satisfied.
2. Driver and Customer: The driver calls the customer before arrival to ensure they are present. This reduces waiting time and ensures a smooth delivery. Such communication is already supported by automated text messaging through last-mile applications, but why not also leverage AI calls?
3. Communication in Problem Situations: The transport company notices that a product has been damaged and immediately informs the consignor and customer service so that the issue can be resolved before delivery.

What Is Communication Ultimately?

Communication is in my opinion undervalued, but it is the only way to ensure that information flows clearly and comprehensible. It is the key to smooth logistics and supply chain efficiency.

Do you have some great errors or success stories about communication?
Write them in the comments.