Logistics risks are those associated with the movement and storage of goods through the supply chain. Extended supply chains, by definition, span greater geographical distances, cross more borders, and involve a higher number of handling points and transportation modes. This inherent complexity and length directly increase the exposure to potential disruptions. Key logistical risks such as transportation delays, damage to goods during transit, customs clearance issues, and loss of inventory are all magnified as the supply chain becomes longer and more fragmented. Therefore, the extension of supply chains is a fundamental and direct cause of increased logistics risk.

A. heightened ethical standards: This is a driver of compliance and reputational risk, influencing sourcing decisions rather than directly causing a physical disruption in the flow of goods.

B. customer expectations: High expectations (e.g., for faster delivery) can increase the pressure on logistics operations and amplify the impact of a failure, but they do not cause the failure itself.

D. economic instability: This is a broad, macro-environmental risk that affects the entire supply chain (e.g., currency, supplier viability), not a specific structural cause of logistics risk like distance.

1. Christopher

M. (2016). Logistics & Supply Chain Management. 5th ed. Pearson. In Chapter 8

"Managing Risk in the Supply Chain

" Christopher explicitly links the trend towards global sourcing with the creation of "long and thin" or extended supply chains

which are inherently more vulnerable to disruption due to longer lead times and reduced visibility (pp. 210-212).

2. Waters

D. (2011). Supply Chain Risk Management: Vulnerability and Resilience in Logistics. 2nd ed. Kogan Page. Chapter 3

"Sources of Risk

" identifies risks within the supply chain

noting that complexity is a major driver. Extended supply chains are a prime example of increased complexity

leading to higher chances of transport delays

infrastructure failures

and other logistical problems (pp. 45-48).

3. Chopra

S.

& Sodhi

M. S. (2004). Managing Risk to Avoid Supply-Chain Breakdown. MIT Sloan Management Review

46(1)

53-61. The article identifies globalization as a major factor increasing supply chain risk. Globalization leads to extended supply chains

which are more susceptible to disruptions from a variety of sources

including natural disasters

geopolitical instability

and transportation failures (p. 54).