WSEAS Transactions on Environment and Development
Print ISSN: 1790-5079, E-ISSN: 2224-3496
Volume 20, 2024
Spatial Dynamics of Logistics Risk Management in Saudi Arabia: Using Spatial Panel Model Analysis
Authors: ,
Abstract: This study sheds light on the critical issue of logistics risk management (LRM) in Saudi Arabia. We investigate the complex and evolving spatial dynamics of LRM between 2010 and 2021. Our research employs a spatial panel model to analyze the spatial relationships between logistics risk factors and their impact on logistics operations. The key finding reveals a stronger spatial association between risk factors and logistics performance in areas with historically higher risk levels. This suggests a clustering effect, where existing logistics problems can amplify the impact of new risks in those areas. In simpler terms, logistics challenges tend to "spill over" from one location to another, highlighting the interconnected nature of risk within the Saudi Arabian logistics network. Furthermore, the study identifies specific risk factors that negatively impact logistics performance. These include weather disruptions, traffic accidents, and port congestion. Such factors contribute to inefficiencies and reduced productivity within the logistics system. The research offers valuable insights for policymakers. Our findings emphasize the importance of promoting modern logistics solutions to reduce congestion on roads and ports. Additionally, the study recommends the adoption of new regulations that facilitate the integration of advanced technologies to mitigate risks associated with congestion and adverse weather conditions. In response to these findings, the Saudi Arabian government has established a national framework for managing logistics risks. This framework includes various initiatives aimed at reducing risks associated with logistics operations. By understanding the spatial dynamics of LRM, this research empowers policymakers to develop more effective strategies for enhancing the overall efficiency and safety of the Saudi Arabian logistics sector.
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Keywords: logistics risks, Moran’s index, spatial panel model, Clustering Effect, Weather Disruptions, Saudi Arabia
Pages: 443-452
DOI: 10.37394/232015.2024.20.41