Ineffective Communication: External and Internal

--- Manufacturing Industry ---

(Adapted from a real business experience;identities protected)

Background

Canadian Adaptive Plastics Corporation (CAPC)sells plastic pellets (resins) to manufacturing companies in Canada, the US, South America, China, and India. Plastic (resins) are used to manufacture a variety of household and industrial products.The products range from bottles and containers, automotive accessories, carpet, headboards, plastic lumber, picnic tables, and more.CAPC buys raw materials from such companies as Dow, Bayer, Phillips, Polyone, and DuPont.

Orders placed with CAPC for raw materials vary in size. Although CAPC has experienced substantial growth since its inception in 1995, the company’s purchase orders, supply requisitions, customers’ orders and similar information are recorded and processed manually.

Inaccurately Transcribing theOutgoing Order

CAPC received an order for reprocessed resins from Fremont, California. The order came in by fax and the order processorwrote out the name of the customer, the size of the order on a form named “Order-Execution Record” and passed it on to Shipping. As is usual for large orders, this order was shipped in containers and by freight train.Contrary to an expectation for a call from the customer acknowledging satisfaction with the shipped order, CAPC received a call from the container shipping company. “Who is the clown that filled the order? The shipment is being refused; it’s not what the order was for.”

CAPC examined the original order; compared it with the shipping record and identified two problems. First, the purchaser asked for 150 crated units. But instead, the figure 1,500 was written out as the size of the order on the “Order-Execution”form.Second, the information written by hand was not checked and verified by anyone in the company.Red-faced, CAPC paused before responding to the customer. A young and small company, but growing very quickly, CAPC did not need this easily avoidable mistake, loss of face and reputation.

CAPC Took Action: Automation, Training, and Supervision

The company consulted professionals knowledgeable in automated order processing methods. Its research led to a comprehensive computerized system that would manage the company’s supply management details, customers’ orders as well as product shipments. CAPC also invested in another program and trained its employees in accurate order-processing and shipping methods.

Possible Discussion Points

1. What should the company immediately do to prevent recurrence of similar mistakes in the short-term?

2. What should the company do to prevent recurrence of errors caused by manual processing in the future?

3.Imagine you are the Sales Manager of the company. Write a letter to the customer acknowledging CAPC’s mistake, and informing the customer what you are going to do tosolve the problem.

Communication Principles and Benchmarks:

  • “Even ‘entry-level’ jobs require high-level skills in ... and communicating. As a result, communication ability ranks first among the qualities that employers look for in job and promotion candidates.” Communication Ability = Promotability” (Chapter 1, Business Communication, Management, and Success, page 3)
  • “Some students think that a secretary will do their writing, …”

(Ibid., “I’ll Never Have to Write Because …”, page 4)

  • “Communication – oral, non-verbal, and written – goes to both internal and external audiences. Internal audiences (Figure 1.2) are other people in the same organization: subordinates, superiors, peers. External audiences (Figure 1.3) are people outside the organization: customers, suppliers, …”

(Ibid.,“The Managerial Functions of Communication”, pages 9-11).

  • “Granting Adjustments and Responding to Complaints” “…when people did complain –and their problems were resolved quickly – 82% would buy again.” (Discussion – Chapter 5, pages 116-117)

Author: Ratna B. Ray, PhD

Professional Communication Department

RyersonUniversity, Toronto, Canada

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