Saudi supply chain venture to boost global trade

A newly created company aims to meet the growing demand for more sustainable and efficient supply chain services in Saudi Arabia.

DHL Supply Chain and Saudi Arabian integrated energy and chemicals company, Aramco, have formed a joint venture company to serve as a procurement and logistics services hub. ASMO (Advanced Supply Management Operations) is expected to drive supply chain efficiencies and expand the Middle East’s global trade potential within the energy, chemical and industrial sectors.

The Chairman of ASMO, Salem Al Huraish, said the vision is to establish sustainable solutions for the modern supply chain challenges.

“In forming this strategically powerful alliance, which harnesses Aramco’s energy ecosystem and DHL’s logistics expertise, we are intent on creating value by driving efficiencies and enhancing the reliability of supplies, making them less vulnerable to disruptions, while focusing on sustainability and lowering carbon emissions,” he said.

The hope is that ASMO will become a market leader in Saudi Arabia and the wider Middle East and North Africa (MENA) region.

“ASMO will not only work on advancing the economic interests of Aramco and DHL, but it plans to also help accelerate growth across the industrial sector of Saudi Arabia and the MENA region while supporting the Kingdom’s 2030 vision of becoming a global logistics hub,” said Aramco Executive Vice President of Technical Services, Wail Al Jaafari.

For its part, DHL sees the joint venture as a way to break free from traditional procurement and logistics constraints, and respond to the evolving dynamics of global supply chains.

“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,” said DHL Supply Chain CEO, Oscar de Bok. “ASMO 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.”

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