Product Characteristic Uncertainty in Supply Chains: Cases from the Food Industry

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Abstract: The food industry is a complex supply chain, where the path of a specific food product may vary and the supply chains within the food industry may have different structures from each other.  Another important characteristic of the food industry is the high frequency of new product introductions; this increases choice for consumers and initiates uncertainty related to product issues such as high product failure rates,  short  product  life  cycles  and  high  inventory  holding  costs.  Consequently,  it  is  important  to understand product characteristic as a source of supply chain uncertainty, how they can be managed and the resulting impact on performance. This research presents a review of the available literature on supply chain uncertainty and related fields, highlights that although product characteristic has been identified as a source of uncertainty, insufficient empirical evidence has been presented. Multi-case study research, using semi-structured interviews, has been conducted across a group of inter-related companies in the food industry in Indonesia to investigate the role of product characteristic in creating uncertainty. The result of analysis helps to refine the concept and provides a basis for detecting and managing product characteristic uncertainty, critical  in the current competitive context.
Keywords: supply chain, uncertainty, uncertainty management, food Industry, Indonesia
Author: Eliot Simangunsong
Journal Code: jpmanajemengg120012

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