PurposeThe purpose of this paper is to review the growing literature examining supply chain risk management (SCRM) and to develop a typology of risks in the supply chain.Design/methodology/approachThe paper draws its insights and conclusions from a review of the literature on supply chain risk, and a synthesis of the broader domain of risk management.FindingsWhile the literature on SCRM is growing, the literature lacks an organized structure for the sources of supply chain risk. The current paper bridges this gap by synthesizing the diverse literature into a typology of risk sources, consisting of environmental factors, industry factors, organizational factors, problem‐specific factors, and decision‐maker related factors.Practical implicationsThe paper devises a typology that can be used by managers to measure and assess the vulnerabilities of their company and supply chain. The typology also provides avenues for future research that further guides practitioners in the management of their supply chain risk portfolio.Originality/valueSCRM is rapidly developing into a favored research area for academicians as well as practitioners, especially after the attacks of September 11 and the recent array of natural disasters. This paper develops a methodology for structuring academic inquiry in this important research area.

a b s t r a c tPressure continues to build on the operations management function to facilitate system and firm level benefits. In the online marketplace, one area of growing interest is that of product returns. Though commonly viewed as a cost center from an operations perspective, operations' actions have the potential to strongly influence future customer buying behavior in several ways. Using an archival database of actual purchase and returns history provided by a moderately sized online retailer, this study examines the relationship between a customer's experience of product returns, and subsequent shopping behavior. Employing transaction cost, consumer risk, and procedural justice theories, we demonstrate that the returns management process, rather than being regarded as an afterthought to the production and deployment of goods, can significantly and positively influence repurchase behavior. Additionally, we provide evidence that certain customers should be considered for prioritization in the returns process. We suggest ways through which operations managers can take care in discharging their responsibilities in this area -to make returns processing more than simply a "necessary cost of doing business" rather, using it to their advantage in engendering repeat and increased purchase behavior.

The Internet retailing industry continues to grow rapidly. Several Internet retailers are, however, struggling to retain customers due to the high level of competition among incumbents. We propose that customer satisfaction with the order fulfillment process is an important determinant of overall customer satisfaction with the retailer, as well as with the extent of customer retention enjoyed by the retailer. This paper offers a new concept for electronic logistics service quality and investigates the relationship between the quality of online fulfillment and the ensuing retention of customers, using archival data on 260 online retailers. The structural equation model results indicate that satisfaction with the physical distribution quality and cost are positively related with customer’s purchase satisfaction and customer retention. Additionally, the results indicate that while purchase satisfaction is a strong indicator of customer retention, underlying drivers of purchase satisfaction do not have nearly the same impact on customer retention directly as they have on purchase satisfaction.

This study investigates operations failures in online retailing. Specifically, it examines the relationship between an operations glitch (order fulfillment delay) and subsequent shopping behavior for previously loyal customers in an online retailing environment. Using archival data from a moderate‐sized online retailer of printed material, this study employs expectancy disconfirmation and distributive justice theories to empirically show that adverse post‐glitch reactions are seen in several dimensions of customer shopping behavior – order frequency and order size decrease, while customer anxiety level increases. The study thus demonstrates that online retailers need to deliver on order fulfillment promises, since a failure to live up to these promises can be detrimental. This study is unique in that, unlike previous studies on order fulfillment in online retailing investigating the tie between fulfillment success and future behavior, we examine the repercussions of order fulfillment failures upon future purchase behavior.