The effect of supply chain orientation on risk and uncertainty: An exercise on members of dairy products supply chain in Erzurum

It is important to identify risk, uncertainty, methods and tools that are utilized to mitigate risk and uncertainty for a supply chain to be healthy and efficient. Risk is a probability of negative outcomes to take place for causal events. Concept of uncertainty is closely associated with risk. Although Risk and uncertainty are used interchangeably in daily life and literacy, there are several differences between risk and uncertainty. First, risk is an output of uncertainty. Uncertainty is not measurable while risk is. And uncertainty is not quantitative but risk is quantitative and prone to be measured. Finally, if a decision maker is aware of an extraordinary situation but is not sure about what will happen then this concept is termed as risk, but decision maker is not even aware of the extraordinary situation then this is termed as uncertainty. Supply chain risk is a probability of occurrence of outcomes that are not desired like danger, damage, loss, injury. Supply chain orientation is a system of common faith and values that help bring clarity to how strategically manage behavioral principles and supply chain that are necessary for an organization. Purpose of the study is to examine the effect of supply chain orientation on dairy supply chain risk and uncertainty. And the other purpose of the study is to determine perception differences among supply chain members (dairy farmers, dairies, retailers) of supply chain orientation and dairy supply chain risk and uncertainty. Scope of the study is dairy farmers, dairies, retailers that are doing business in Erzurum dairy supply chain. According to the study, retailers and dairies express that they didn't come across with risk and uncertainty while dairy farmers were indecisive about this situation. Dairy farmers, dairies, retailers had a positive opinion about existence of supply chain orientation. And, it was determined in the study that there was a difference among dairy supply chain members about perception of dairy supply chin risk, uncertainty, orientation. Finally, it was determined that supply chain orientation affected dairy supply chain risk and uncertainty negatively.