Why is it necessary to keep everyone informed in the supply chain?

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Keeping everyone in the supply chain informed is very important to avoid any sort of uncertainty and to minimise risk.

Keeping everyone informed can not only keep the business transparent, but it also helps in keeping things running smoothly without any misconception or miscommunication among people involved in the supply chain.


Firstly, what is a supply chain?


The supply chain is a diverse field of processes. It is the network of all the people, businesses, resources, tasks, and technological innovations involved in the production and distribution of a good or service. The entire supply chain starts from the distribution of raw materials from the supplier to the manufacturer and then the final delivery to the customer.


Here’s a list of the steps involved in the supply chain:

  1. Getting the raw materials
  2. Shaping the raw materials into basic parts
  3. Using the basic parts of the raw material to form a product
  4. Ordering the sales
  5. Delivering the product
  6. Offering customer support and return services

Keeping your supply chain informed is important because this can actually save your time, increase profits and also lead to a better workflow. Here are a few more reasons:


Better collaboration


When everybody involved knows what is going on, it leads to better collaboration. Integrated software solutions enable the easy exchange of information and the elimination of bottlenecks, giving a comprehensive perspective of the whole supply chain. Due to this supply chain, leaders make better judgments because of increased access to data and context-sensitive information.


Better quality control


Companies benefit from better quality control when they have more control not just over their direct suppliers but also over their suppliers’ suppliers. This way they can give guidelines directly to them and have the chance to monitor them directly, thus leading to improved quality control.


Increased efficiency rates


When you know about raw materials and manufacturing delays, you can implement backup plans. When companies are not aware of these factors and are not ready with a plan B, they face late delivery issues and also run out of inventory.


Avoid disruptions


Companies can avoid adverse effects by being proactive and aware of the supply chain rather than just responding to disruptions, quality control problems, or other issues whenever they occur.

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