ASMO expands procurement services for Saudi Aramco

30/10/2025 02:59 AST

ASMO, a joint venture between Saudi Aramco Development Company and DHL, a global leader in the logistics industry, has announced the expansion of its procurement services for the global oil giant Aramco with the management of 120 additional procurement agreements covering general supply materials.

The expansion builds on a successful procurement pilot completed in July 2025 and represents a tenfold increase in ASMO's engaged supplier base. It also introduces thousands of additional material line items across core general supply commodities.

Future procurement phases are expected to extend through 2027 and will include additional categories such as MRO, Drilling & Chemicals, and Project Materials, supported by a broader and more integrated supplier network.

These developments are part of ASMO's phased national rollout under its 15-year strategic commercial agreement with Aramco, supporting Saudi Arabia's Vision 2030 agenda, which aims to localise supply chains and strengthen the kingdom's logistics infrastructure.

It follows the launch of ASMO's warehousing operations in the Saudi cities of Riyadh and Jazan earlier this year, marking a transition into scaled operations that aim to enhance supply chain efficiency across the country's energy and industrial sectors.

"Aramco helped establish ASMO with a clear objective: to create a fit-for-purpose supply chain platform that drives resilience, scale, and long-term value in the kingdom and the broader region," remarked Sulaiman M. Al Rubaian, Senior Vice President of Procurement & Supply Chain Management at Aramco.

"As the anchor customer, the results of the investment are becoming tangible as procurement services expand through scalable systems, and ASMO assumes operational management of key sites across the Kingdom. The model is delivering early momentum and reflects the trust, alignment, and execution that have shaped this partnership into a scalable national platform," he added.

Craig Roberts, the Chief Executive of ASMO, said: "In under a year, we have transitioned from vision to execution. The progress to date is the result of a team that's aligned, focused, and committed to getting this right. Procurement is live, two Aramco-owned warehouses are under management, and future customers are already engaged."

"ASMO was established to redefine how businesses procure, store, and move goods across Saudi Arabia and the wider Mena region. With efficiency, scalability, and cost savings at its core, the model is setting a new benchmark for the future of supply chain management," he added.

By 2030, ASMO aims to operate six state-of-the-art logistics and warehousing facilities with over 8 million sq m in space, and oversee procurement activity exceeding $8 billion supporting its vision to become the leading supply chain services provider in Saudi Arabia and the wider region.

Trade Arabia