The measurement model of supply chain uncertainty and risk in the Australian courier industry

Courier is a booming industry in today's world. Courier company is one of the most significant 3PLs modules. With the development of globalisation, e-business, shorter product and technology life cycles and higher customer expectations, courier service providers face more supply chain uncertainty and risk than ever before. The supply chain uncertainty and risk has significant impacts on logistics performance in the courier service providers. Uncertainties and risks are interchangeable and inseparable. Moreover, in a real world environment, managers have to face and manage both supply chain uncertainty and risk simultaneously. The purpose of this paper is to present the results for development of an empirically validated measurement of supply chain uncertainty and risk in the Australian courier industry. The empirical data was collected in the Australian courier industry. A measurement model of structural equation modelling is used to identify the underlying factors of supply chain uncertainty and risk in the Australian courier industry. They are (1) company-side uncertainty and risk, (2) customer-side uncertainty and risk, and (3) environment uncertainty and risk. The results indicate high levels of reliability and validity of the measurement. This measurement model contributes to the supply chain uncertainty and risk literature. In addition, it provides an insight into assess supply chain uncertainty and risk in an industry.

[1]  Rajiv Vaidyanathan,et al.  Dictionary of statistics and methodology : #a #nontechnical guide for the social sciences , 1994 .

[2]  F. Cucchiella,et al.  Risk management in supply chain: a real option approach , 2006 .

[3]  F. Knight The economic nature of the firm: From Risk, Uncertainty, and Profit , 2009 .

[4]  S. Chopra,et al.  Managing Risk To Avoid Supply-Chain Breakdown , 2004 .

[5]  J. March,et al.  Managerial perspectives on risk and risk taking , 1987 .

[6]  A. Beulens,et al.  Identifying sources of uncertainty to generate supply chain redesign strategies , 2002 .

[7]  D. Waters Supply Chain Risk Management: Vulnerability and Resilience in Logistics , 2007 .

[8]  Lisa Hauer RISK-ADJUSTED SUPPLY CHAIN MANAGEMENT , 2003 .

[9]  H.L. Lee,et al.  Aligning Supply Chain Strategies with Product Uncertainties , 2002, IEEE Engineering Management Review.

[10]  Marko Sarstedt,et al.  The Use of Partial Least Squares Structural Equation Modeling in Strategic Management Research: A Review of Past Practices and Recommendations for Future Applications , 2012 .

[11]  J. Mentzer,et al.  GLOBAL SUPPLY CHAIN RISK MANAGEMENT , 2008 .

[12]  James Lam Enterprise Risk Management: From Incentives to Controls , 2003 .

[13]  Christopher S. Tang,et al.  Managing Supply Chain Risk , 2012 .

[14]  T. Davis Effective supply chain management , 2020, Strategic Direction.

[15]  Edmund Prater,et al.  A framework for understanding the interaction of uncertainty and information systems on supply chains , 2005 .

[16]  Mohamed Mohamed Naim,et al.  Establishing a transport operation focused uncertainty model for the supply chain , 2008 .

[17]  M. Christopher Logistics and supply chain management , 2011 .

[18]  Andrew B. Whinston,et al.  Supply chain information sharing in a macro prediction market , 2006, Decis. Support Syst..

[19]  H. Peck Reconciling supply chain vulnerability, risk and supply chain management , 2006 .

[20]  M. Christopher,et al.  Supply chain risk management: outlining an agenda for future research , 2003 .

[21]  ManMohan S. Sodhi,et al.  An analysis of sources of risk in the consumer electronics industry , 2006, J. Oper. Res. Soc..

[22]  Gudela Grote,et al.  Management of Uncertainty: Theory and Application in the Design of Systems and Organizations , 2009 .

[23]  B. Ritchie,et al.  Supply chain risk management and performance: A guiding framework for future development , 2007 .

[24]  M. Punniyamoorthy,et al.  Assessment of supply chain risk: scale development and validation , 2013 .

[25]  Alan C. McKinnon,et al.  Use of a synchronised vehicle audit to determine opportunities for improving transport efficiency in a supply chain , 2004 .

[26]  Hugh McManus,et al.  A framework for understanding uncertainty and its mitigation and exploitation in complex systems , 2006, IEEE Engineering Management Review.

[27]  Chris Ellegaard Supply risk management in a small company perspective , 2008 .

[28]  David J. Ketchen,et al.  Risk Uncertainty and Supply Chain Decisions: A Real Options Perspective , 2010, Decis. Sci..

[29]  Linda Hendry,et al.  Supply-chain uncertainty: a review and theoretical foundation for future research , 2012 .

[30]  Prof. D. P. Patil,et al.  Management of Uncertainty In Supply Chain , 2012 .

[31]  Kent D. Miller A Framework for Integrated Risk Management in International Business , 1992 .

[32]  Terje Aven,et al.  Quantitative Risk Assessment: The Scientific Platform , 2011 .

[33]  Hau L. Lee,et al.  Mitigating supply chain risk through improved confidence , 2004 .

[34]  Mohamed Mohamed Naim,et al.  The impact of logistics uncertainty on sustainable transport operations , 2010 .

[35]  Kevin P. Scheibe,et al.  Supplier Risk Assessment and Monitoring for the Automotive Industry , 2008 .

[36]  Markus Biehl,et al.  International supply chain agility ‐ Tradeoffs between flexibility and uncertainty , 2001 .

[37]  Carl Marcus Wallenburg,et al.  Dealing with supply chain risks Linking risk management practices and strategies to performance , 2017 .

[38]  M. Christopher,et al.  Building the Resilient Supply Chain , 2004 .

[39]  M. Naim,et al.  Evaluating the causes of uncertainty in logistics operations , 2010 .

[40]  Carl Marcus Wallenburg,et al.  Dealing with supply chain risks , 2012 .

[41]  Stephan M. Wagner,et al.  AN EMPIRICAL EXAMINATION OF SUPPLY CHAIN PERFORMANCE ALONG SEVERAL DIMENSIONS OF RISK , 2008 .

[42]  Rolph E. Anderson,et al.  Multivariate Data Analysis (7th ed. , 2009 .