Communication Between Supply Chain Actors: A Risk Reduction Factor in Supply Chains

The growing complexity of supply chains and the increase in risks make communication between supply chain actors in these chains crucial to reduce the risks inherent there. Indeed, each supply chain forms a communication node between a large number of highly interconnected actors (producers, suppliers, transporters, distributors, retailers, and customers). Information sharing, information systems, and technology as some of the most important components of this communication and contribute to the reduction of risks surrounding the activities carried out by actors within supply chains. This paper presents a review of the literature on the importance of communication between supply chain actors. It explores the impact of information sharing on the quality and effectiveness of communication within a supply chain and highlights the importance of information systems and technology to ensure effective communication between its actors. The influence of this effective communication on supply chain risk reduction is also discussed. In addition, the main supply chain risks reduced by an effective communication system are as well examined.