DHL Supply Chain and Aramco launch ASMO
Par Ibrahima DIALLO
6 February 2024 / 10:23

Aramco and DHL Supply Chain have formed a joint venture, ASMO (Advanced Supply Management Operations); a new supply and logistics service center in Saudi Arabia.

Salem Al Huraish, Chairman of ASMO, commented: "We created ASMO with the vision of establishing sustainable solutions to the modern supply chain challenges we all face.

"By forming this strategically powerful alliance, which leverages Aramco's energy ecosystem and DHL's logistics expertise, we intend to create value by improving the efficiency and reliability of supplies, making them less vulnerable to disruption, while focusing on sustainability and reducing carbon emissions."

Wail Al Jaafari, Aramco's Executive Vice President Technical Services, said: "This is a great day for Aramco, for DHL and for everyone working to build a better future for our region.

"We are launching ASMO with the ambitious vision of becoming a market leader in Saudi Arabia and across the MENA region, offering world-class end-to-end, comprehensive supply chain services that would create value for its customers and improve the resilience of their supply chain.

"The ASMO will not only work to advance the economic interests of Aramco and DHL, but also plans to help accelerate growth in the industrial sector of Saudi Arabia and the MENA region, while supporting the Kingdom's 2030 vision of becoming a global logistics hub."

Oscar de Bok, CEO of DHL Supply Chain, emphasized the transformative power of the joint venture: "By uniting the expertise of DHL Supply Chain and Aramco in this new joint venture, we aim to free ourselves from traditional procurement and logistics constraints, responding to the changing dynamics of global supply chains.

"ASMO is the first hub in the region to offer a comprehensive and integrated range of end-to-end supply chain services to companies in the energy, chemical and industrial sectors.

"The ASMO plans to redefine how these companies will buy, store and transport goods and services within, to and from Saudi Arabia and the wider MENA region, with the aim of achieving efficiencies, cost savings and economies of scale."

The ASMO is envisaged to meet the growing demand for more sustainable and efficient supply chain services in Saudi Arabia, while reflecting the region's growing market potential as a gateway to global trade for the energy, chemical and industrial sectors.

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

In a world facing supply shortages, logistics disruptions and rising costs, ASMO is poised to become a regional supply chain hub, covering supply chain services from procurement to logistics, warehousing and even a B2B e-marketplace for customers.

Sustainability will be a fundamental principle. The measures implemented by the ASMO across all supply chain operations aim to advance circular practices in the economy.

ASMO aims to improve efficiency throughout the supply chain while achieving cost savings, its approach generating value for customers as well as for Saudi Arabia.

The combination of Aramco's procurement expertise and DHL's supply chain potentially enables ASMO to offer the lowest cost of supply, enabling growth in the energy, chemical and industrial sectors. It will connect suppliers and customers through its brokerage model, reducing the need to hold inventory and cutting costs.

By delivering cost savings through the optimization of purchasing, logistics and inventory, ASMO aims to improve service levels in purchasing and supply chain management, enabling customers to focus on core business activities while reducing operating costs.

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