The Measurement Model of Supply Chain Uncertainty and Risk in the Australian Courier Industry

Abstract

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.