A study of risk management practices in logistics operations

Abstract

Due to the intricacies of the current market and business environment, disruptions in logistics can lead to significant ramifications for businesses, posing a risk to their operational resilience. Hence, adopting resilient risk management strategies has become imperative in mitigating prospective financial losses in business. This chapter delves into logistics risk management from a process-oriented viewpoint, encompassing logistics operations, risk management strategies, risk management procedures, and assessing enterprises' performance. Diverse risk management theories and frameworks have been scrutinized in the literature to provide practical insights into essential logistics risk management concepts. An essential subject matter in professional and public discourse concerns the correlation between service quality and risk management. This study centers on the identification of innovative approaches to improve service quality in compliance with global standards, alongside addressing the increasing needs of customers in the transportation industry. The key findings are derived from dynamic models, such as those put forth by experts Lynn Shostack and Leonard Berry, that differentiate between routine and exceptional operation.