Communication linkage
In this win-win environment, communication is an essential ingredient for
developing successful purchaser-supplier relations. New or enchanted
communication patterns being practiced include:
• more freely exchanged cost, schedule, and quality control information;
• the elimination of purchase orders for each shipment;
• involving suppliers in the development of design specifications;
• the formation of joint task forces to resolve concerns;
• the use of supplier and manufacturer plant visits;
• the use of electronic data interchange (EDI).
The above list is from the International Journal of Purchasing & Materials
Management (Richeson et al., 1995). By opening the channels of communication,
companies foster the development of trust between the purchaser and its
supplier, thereby facilitating openness in the exchange of information.
An effective relationship between a purchaser and a supplier depends not
only on the type of communication but more importantly on the effectiveness of
each partner’s communication. In a JIT environment this dimension is critical; it
reflects the trust and commitment of the two partners to achieve mutual goals.
Schedule and delivery performance are seen as the most important reasons for
communication. The combined communication efforts of JIT relationships have a
greater impact on improving delivery performance. The emphasis, therefore,
should be in improving communication on operational and informational
linkages concerning the managing of schedule and delivery performance.