The supply chain uncertainty and risk measurement development

Due to the globalization, increased supply chain network complexity, higher customer expectations, shorter product and technology life cycles, and unstable environment, today's supply chain now face more uncertainties and risks than ever. Supply chain uncertainties and risks already became major obstacles in achieving on time delivery, increasing customer satisfaction, improving the efficiency and reducing costs. Therefore, managing supply chain uncertainty and risk has become a priority issue in supply chain. Uncertainties and risks are interchangeable and inseparable. The study theoretically proposes four major categories of supply chain uncertainty and risk: (1) logistics uncertainty and risk, (2) information uncertainty and risk, (3) customer-related uncertainty and risk, and (4) environmental uncertainty and risk, in logistics and transport service industries. The purpose of this paper is to provide a reliable and appropriate measurement tool to assess the supply chain uncertainties and risks in logistics and transport industries. In developing the research instrument different sources were used including an intensive literature review on supply chain uncertainty and risk and interviews with both supply chain and logistics academics and managers from world leading logistics companies. Using the instrument enables the firms to identify and assess the various supply chain uncertainties and risks holistically in logistics and transport industries. This would also result in the development of a practical guidance for supply chain uncertainty and risk management in the industries.