Saudi Aramco, DHL launch ASMO

Saudi Arabian Oil Co. (Saudi Aramco) and DHL Supply Chain (DHL) announced the formation of a joint venture, Advanced Supply Management Operations (ASMO), a new procurement and logistics services hub in Saudi Arabia.

Digital technologies are fundamental to ASMO, which plans to integrate advancements of automation and collaborative robotics, artificial intelligence (AI), data analytics, and blockchain.

ASMO is the region's first hub providing a comprehensive and integrated end-to-end supply chain service offering for businesses in the energy, chemical and industrial sectors.

The JV plans to redefine the way these companies will procure, store and transport goods and services within, to and from Saudi Arabia and the wider MENA region, seeking to drive efficiencies, cost savings and economies of scale.

Combining Aramco's procurement expertise and DHL's supply chain potentially allows ASMO to offer the lowest cost of procurement, enabling growth for the energy, chemical and industrial sectors. It will connect suppliers and customers through its brokerage model, reducing the need for inventory holding and reducing costs.

Delivering cost savings through optimized procurement, logistics, and inventory, ASMO aims to enhance service levels in procurement and supply chain management, allowing customers to focus on core business activities by alleviating operational burdens.