Supply chain uncertainty is an issue with which every practicing manager wrestles, deriving
from the increasing complexity of global supply networks. Taking a broad view of supply
chain uncertainty (incorporating supply chain risk), this paper seeks to review the literature in
this area and develop a theoretical foundation for future research. The literature review
identifies a comprehensive list of fourteen sources of uncertainty, including those that have
received much research attention, such as the bullwhip effect, and those more recently
described, such as parallel interaction. Approaches to managing these sources of uncertainty
are classified into: ten approaches that seek to reduce uncertainty at its source; and, eleven
approaches that seek to cope with it thereby minimising its impact on performance.
Manufacturing strategy theory, including the concepts of alignment and contingency, is then
used to develop a model of supply chain uncertainty, which is populated using the literature
review to show alignment between uncertainty sources and management strategies. Future
research proposed includes more empirical research in order to further investigate: which
uncertainties occur in particular industrial contexts; the impact of appropriate
sources/management strategy alignment on performance; and the complex interplay between
management strategies and multiple sources of uncertainty (positive or negative).