Proceedings of The International Conference on Advanced Research in Supply Chain Management
Managing Drilling Sludge and Other Wastes Occurred in Oil Industry in Developing Countries with the Reverse Logistics Implementation
In recent decades, reverse logistics has been a topic of interest for organizations and researchers. However, there is still disbelief in reverse logistics in most companies rising from uncertainty about it. Implementing reverse logistics requires big investment which scares top managers as they are sceptic about potential benefits it can bring to a company. Although, due to international and local regulations about green economy companies are more interested in green supply chain management which also increases competitiveness of businesses and builds positive image. Building reverse logistics network can increase the profit, cut the costs of the companies and save the nature. There is a gap in research conducted in managing waste in oil sector with reverse logistics, especially in developing countries. However, oil and gas sector is among leader industries with considerable recycle and reuse opportunities with the help of implementing reverse logistics properly as this sector generates a large amount of waste. The article aims to describe the potential benefits of reverse logistics for business in oil industry with explanation of the treatment of drilling sludge and ways to manage it efficiently. This study’s findings suggest proper waste management for oil sector with implementing reverse logistics system in oil industry which is beneficial both for researchers and practitioners by providing more clarity and better understanding, and it opens more room for future investigation and discussions.
keywords: reverse logistics, green supply chain, oily waste, drilling sludge