The Impact of Transportation and Distribution Costs on Supply Chain Efficiency in Saudi Arabia within the Vision 2030 Framework

Abstract

This research examines the role of reducing transportation and distribution costs in improving supply chain efficiency within the context of Saudi Arabia’s Vision 2030. Transportation and distribution activities represent a significant proportion of total logistics costs and directly influence operational performance, service levels, and overall competitiveness. The study adopts a secondary data approach, reviewing academic literature, industry reports, and government publications to analyse cost structures, logistics strategies, and performance indicators. The findings indicate that cost optimisation strategies such as digital transformation, multimodal transport integration, route optimisation, and infrastructure development significantly enhance supply chain efficiency. The research concludes that reducing transportation and distribution costs contributes to improved responsiveness, reduced lead times, and strengthened national logistics performance, supporting Saudi Arabia’s ambition to become a global logistics hub under Vision 2030.