Process Optimization, Innovation and Operation Flexibility Focused Capability Impact on Supply Chain Risks in Courier Companies in Sri Lanka

Risks in supply chain covers up the inconveniences that could happen in a supply chain of a certain organization. Process Optimization Focused Capability (POFC), Innovation Focused Capability (IFC) and Operation Flexibility Focused Capability (OFFC) are considered as the developments in the logistics sector which is connected to the logistic innovations. The Supply Chain Risk (SCR) is considered as a major issue in the courier industry based on the impact on these three logistic developments. This research paper aims to provide an empirical study about the impact of these three variables on SCR regarding Sri Lankan courier industry. A questionnaire survey was conducted with the managerial level, executives and other staff connected to Sri Lankan courier industry in a quantitative approach to collect the data required by considering a population of 58 courier industries. Simple random sampling was used to identify the sample size of 52 while 48 courier companies responded to the questionnaire. Multiple Linear Regression (MLR) was aided to analyze the results with the use of Statistical Package for Social Sciences (SPSS) as the statistical software. The results revealed that POFC, IFC and OFFC have a negative impact on SCR while the study concluded that effective management of logistic innovation in a cost optimization method will result to have no impact on SCR. Further recommendations recommended, that efficient use of logistic innovations will support the courier companies in mitigating the SCR