Logistics in Yemen: Addressing the Weakness of Purchasing Power to Satisfy Needs: In Context of Supply Chain Design Optimization (case of Yemen)

Abstract

Purchasing power in Yemen is gradually decreasing due to rising product costs, creating an urgent need for solutions to meet consumer demand. The increase in energy prices and the continuous inflation of the national currency present significant challenges for manufacturers seeking to compete in the local market. To remain competitive, manufacturers must implement changes that improve their products, with a particular focus on low-cost packaging, production, and transportation as key priorities in product development.

In this study, the author employs both quantitative and qualitative research methods, planning and executing fieldwork to collect data from the local products market, local factories (including Arwa Plastic Industry), and the Ministry of Industry and Trade in Yemen. During the data collection process, visits are conducted to the Ministry to obtain information on local industries and imports of raw materials for product packaging. Fieldwork also includes visits to major industrial zones in Sana’a, Taiz, and Hodeida to gather data from factory representatives regarding packaging materials, as well as observations from the local market. Additionally, a visit is made to Arwa Plastic Industry Ltd. to support the analysis of transitioning from rigid, heavy packaging to more adaptable packaging solutions. A research questionnaire is also prepared for manufacturers and customers to support the findings with empirical evidence. Furthermore, data on road freight are collected from the Yemen General Union of Heavy Transport.

Following data collection, the study analyzes the extent to which manufacturers can shift from traditional heavy packaging to more efficient alternatives in terms of weight, ease of manufacturing, and reduced energy requirements. The findings indicate that adopting flexible and lightweight packaging can significantly reduce freight and storage costs, as well as retail prices.