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SABIC Green Logistics Systems & Profitability: To explore chemical industries green logistics and contribution to profitability with a particular case of SABIC
Jönköping University, Jönköping International Business School, JIBS, Centre of Logistics and Supply Chain Management (CeLS).
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Background: Logistics is paramount in the business operations as it ensures transit of goods from one point to the other. Green logistics are measures in the logistics systems that are put in place to minimize the environmental implication of logistics operations while at the same time saving on cost. Thus, green logistics is adopted as it conveys a competitive merit which enhances performance of a company. Saudi Basic Industries (SABIC) is one of the biggest petrochemicals in Saudi Arabia and holds the fifth position in the world among the leading producers of petrochemicals. The company already has green logistics in place.

Purpose: To explore chemical industries green logistics practices and profitability with a particular case study of SABIC. The goal of this paper was achieved by investigating how has SABIC incorporated green practices into supply chain operations to remain profitable. The study answers “how has chemical industries incorporated green practices into supply chain operations to stay profitable?’ And “how do logistic managers recognize green logistics and to what level do chemical industries apply green logistics? Investigating a chemical industry green logistics is important as it contributes to literature since no single study has been carried out in this area. Suggestions from this study are crucial to SABIC, other chemical industry besides any other industry since in one way or the other companies do logistics.

Method: The study utilized interpretivism. This study was a case study type of thesis focusing merely on SABIC, and it employed induction approach as well as the qualitative method of collecting data.  Interviews were used to explore the experiences, beliefs, motivations and views of individual participants. Using non-probability sampling method, five members in SABIC supply chain department were selected.

Conclusion: The results show that SABIC or chemical industries utilize most of the green logistics activities (fuel efficiency, route optimization package optimization and calculating carbon emission). However, it was found out that fuel efficiency, route optimizations, and packaging optimization were most common activities. It was also discovered that one major objective of chemical industries going green was to cut cost which contributes positively to its profitability. However, reverse logistics was not familiar because of its nature; it cannot be sufficient on its own.

Place, publisher, year, edition, pages
2017. , 95 p.
Series
JIBS Dissertation Series, ISSN 1403-0470
Keyword [en]
green port, green logistics, zero emissions, environmental friendliness
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-36513ISRN: JU-IHH-FÖA-2-20170525OAI: oai:DiVA.org:hj-36513DiVA: diva2:1118575
Subject / course
IHH, Business Administration
Presentation
2017-06-01, B3053, Gjuterigatan 5, 553 18, Jonkoping, 13:00 (English)
Supervisors
Available from: 2017-08-17 Created: 2017-06-30 Last updated: 2017-08-17Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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