Purpose: Supply chain management is a key aspect in improving the productivity of military hospitals. Hospitals currently distribute commodities (medicines) and services digitally. The purpose of this study is to investigate the direct and indirect effects of digital communication on hospital productivity through supply chain management. Research design, data and methodology: This study uses the Structural Equation Modeling (SEM) analysis approach in conjunction with the SmartPLS tool. The primary data used in this study came from the delivery of digital questionnaires to 209 medical personnel at a military hospital. Results: According to the findings of this study, digital communication can help hospitals enhance the distribution of goods (medicines) and services via Supply Chain Management. The study also examines the impact of digital communication and supply chain management on productivity in military hospitals. Conclusions: The establishment of effective and efficient supply chain management in hospitals will boost productivity. According to this study, supply chain management has the most direct impact on productivity in military hospitals. This study also demonstrates that digital communication has a direct and indirect impact on productivity though supply chain management. As a result, this study demonstrates that supply chain management-based product and service distribution in hospitals has the potential to increase corporate productivity.