Evaluating logistics capability for mitigation of supply chain uncertainty and risk in the Australian courier firms

Purpose – Logistics capability is an important ability for transport and logistics firms to deliver the value and services to the customers. In contrast, supply chain uncertainty and risk is an issue in supply chain and logistics to obstruct the delivery. The purpose of this paper is to evaluate and understand the logistics capability, and to provide empirical evidence for logistics capability mitigating supply chain uncertainty and risk in the Australian courier firms. Design/methodology/approach – This study examines the relationship between logistics capability and supply chain uncertainty and risk. Partial least squares approach for structural equation modelling is applied for data analysis involving the interplay of theoretical thinking and empirical data. Empirical data are collected through a web-based survey. Total 98 Australian courier firms are identified and invited in the study. Findings – Based on the factor analysis, the authors identify the key factors of logistics capability for the Australian courier firms. This would help both academics and practitioners to have a better understanding of logistics capability in the transport ad logistics firms. In addition, results indicate that there is a negative relationship between logistics capability and supply chain uncertainty and risk in the Australian courier firms. Research limitations/implications – The result in support of logistics capability mitigating supply chain uncertainty and risk. It also makes a contribution to logistics risk management literature. The paper focuses on the Australian courier industry. Therefore, any generalisation to other countries or sectors must be made with caution. Originality/value – This paper provides an insight into supply chain uncertainties and risks management. This would result in the development of a practical guidance for practitioners developing and deploying logistics capability to support and enable supply chain risk management strategies.