In this study, we investigate the effects of supply chain operations and supply chain risks on supply chain performance. Operationally, warehouse processes contain various risks which lead to a poor supply chain performance. In order to avoid supply chain breakdown, risk analysis in warehouse operations is a challenging task to enhance both the supply chain efficiency and the customer satisfaction. In this context, failure mode and effects analysis (FMEA) is a useful risk assessment tool and therefore, this study is a novel approach towards risk evaluation of warehouse operations.