Reverse logistics in emerging economies: evidence from the Kingdom of Saudi Arabia

Purpose: This paper explores the application of reverse logistics in the Kingdom of Saudi Arabia (KSA). The drivers of reverse logistics in more developed countries are compared with those in the KSA context. In particular, the current legislative framework and practices are evaluated against best practices in order to identify opportunities for KSA industries to improve their reverse logistics operations.Research Approach: The research is exploratory in nature and five organizations were identified as appropriate case studies. These organizations were drawn from the plastics, oil and metal processing industries all of which provide potential for close loop supply chain applications which are widely practiced outside of KSA. Secondary data collection, direct observation, and elite interviewing methods were used in the case studies in order to facilitate comparison with the existing literature on the topic.Finding and originality: The implementation of reverse logistics in KSA is in its early stage with the exception of the oil processing industry. Applications of reverse logistics appear to be driven predominantly by economic factors and are highly dependent on the capability provided by third party logistics service providers. Supply chains tend to operate as open loops with recycled /reusable products being supplied to secondary markets and/or locations outside KSA. The adoption of best practices is hindered by the country’s logistics infrastructure and local legislation that does not appear to encourage waste reduction, reduce landfill disposal or enhance the awareness or control of reverse logistics process. No study of this type has been previously carried out in KSA and the findings are useful in identify future research agenda for reverse logistics in KSA and, possibly, other emerging countries with a similar context.Research Impact: A reverse logistics framework is developed from the literature and evaluated in the context of KSA. The findings can be used to extend this framework to enable it to be more applicable to context other than those experienced in developed countries. Practical Impact: The findings indicate that both government and industry need to collaborate further to implement best practices in reverse logistics in KSA. Economic and environment benefits can be achieved, particularly, through improved infrastructure provision, legislation and reverse logistics design.