The Role of Reverse Supply Chains in Enhancing Circular Economy Applications: An Applied Study on Jeddah Municipality

Abstract

This study aims to diagnose the current state of reverse supply chains at Jeddah Municipality and assess their role in enhancing circular economy applications, proposing an integrated operational model aligned with Saudi Vision 2030 environmental targets and the Saudi Green Initiative.

The study adopted a descriptive quantitative approach, collecting primary data from two complementary sources: a survey of 55 citizens and residents of Jeddah measuring awareness levels, behavioral practices, and community expectations; and a specialized survey of 38 Jeddah Municipality employees diagnosing the internal operational reality of reverse supply chains and digital technology readiness. The first instrument contained 18 items across four axes, while the second contained 16 items across four axes, supplemented by open-ended questions.

Results revealed a significant strategic gap between high community willingness (M=4.26 for participation readiness) and moderate operational reality (M=3.11 for service quality assessment). Citizens expressed strong readiness for digital and incentive-based solutions, while the system suffers from inadequate source-separation infrastructure and weak institutional communication. Municipality employees demonstrated relatively high institutional alignment (M=3.87), yet acknowledged critical weaknesses in economic incentives (M=3.43) and IoT adoption (M=3.32), with near-unanimous support for GIS implementation (M=4.19, 89.2% agreement).

Based on these findings, the study presents a four-phase integrated operational model beginning with deploying smart classified bins and launching an official digital application, progressing toward building an integrated circular industrial complex and activating Extended Producer Responsibility (EPR) legislation. The study concludes that Jeddah's transition to a circular economy is both feasible and economically justified, provided the gap between strategic ambition and field implementation is systematically bridged.