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Analysis of Factors Influencing Supply Chain Management in Saudi Arabia
Introduction
In an increasingly globalised economy, supply chain management (SCM) plays a critical role in driving business efficiency, competitiveness, and resilience. Saudi Arabia, as part of its Vision 2030 agenda, has placed significant emphasis on developing advanced logistics infrastructure and supply chain networks to diversify its economy beyond oil (Saudi Vision 2030, 2016). Despite these reforms, many Saudi businesses continue to face operational inefficiencies, logistical delays, and dependency on imported materials. This proposal aims to explore the factors influencing SCM performance in Saudi Arabia, with a focus on organisational, technological, and regulatory dimensions.
Research Aim and Objectives
The main aim of this research is to analyse the key factors that influence the effectiveness of supply chain management practices in Saudi Arabia.
Objectives:
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To examine the role of supply chain management in improving operational performance among Saudi firms.
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To identify the internal and external factors that influence SCM effectiveness.
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To evaluate the contribution of businesses and government initiatives in supporting efficient supply chain systems.
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To provide recommendations for strengthening SCM strategies in line with Vision 2030.
Research Questions
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Does supply chain management have a significant effect on organisational performance in Saudi Arabia?
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To what extent do Saudi businesses contribute to effective SCM practices?
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What factors most strongly influence SCM implementation and performance in Saudi Arabia?
Literature Review Summary
Existing research highlights that effective SCM depends on collaboration, digital transformation, and policy support (Christopher, 2016). In Saudi Arabia, studies show that logistics infrastructure, skilled human resources, and digital readiness remain key challenges (Al-Saadi & Abdallah, 2021). Technological innovation, particularly through blockchain and AI, is reshaping global supply chains (Ivanov, 2020), but local adoption in Saudi firms is still developing. Moreover, government initiatives such as the National Industrial Development and Logistics Program (NIDLP) aim to enhance supply chain competitiveness by modernising infrastructure and regulatory frameworks.
Methodology
This study will adopt a quantitative research approach using structured questionnaires distributed to supply chain managers and operations executives from manufacturing, logistics, and retail sectors in Saudi Arabia. Data will be analysed using SPSS to identify relationships between independent factors (e.g., technology, training, government policy) and dependent variables (SCM efficiency and performance). A positivist research philosophy and deductive approach will guide the analysis to ensure objectivity and reliability.
