SAP and Saudi Aramco take aim at the digital business marketplace
The agreement is expected to aid Saudi Aramco in overseeing bids and communicating directly with global suppliers
In a newly minted partnership, SAP and Saudi Aramco have joined forces in an effort to launch a digital business marketplace. As the latest step in the company's digital transformation strategy, the partnership with SAP Ariba will help Saudi Aramco and its global subsidiaries in better managing their partnerships with both buyers and suppliers.
As per the new deal, the national petroleum and natural gas company will reportedly become the first company in Saudi Arabia to operate on SAP Cloud Hub, a platform that forms part of SAP's four-year, $75.96m investment plan in the country.
Ahmed Al-Faifi, managing director of SAP Saudi Arabia, Bahrain, and Yemen, said: "Through the SAP Cloud Hub, SAP continues to co-innovate with the Kingdom's leading players to drive Saudi Vision 2030 digital transformation and support Saudi job creation through our academies."
Powered by SAP Ariba moving forward, Saudi Aramco will gain access to a number of enterprise solutions geared towards enhancing their supply chain environment. These include the integration of modules surrounding e-Bidding, Contracts Life-Cycle Management, Supplier On boarding, as well as e-Sourcing.
According to SAP, buyers and suppliers from across the world who benefit from SAP Ariba source-to-pay applications, have experienced up to 60% reduction in costs, as well as increases by 50% and 5% in both efficiency and sales, respectively. Buyers and suppliers have also reported a 15% improvement when it comes to retaining customers.
Commenting on the new partnership, Mohammad AlZaubi, global director for Saudi Aramco, SAP, commented: "Using the Ariba business platform, Saudi Aramco buyers and suppliers can gain new levels of business competitiveness, and simpler, smarter sourcing. SAP fully supports Saudi Aramco's digital transformation agenda for long-term and sustainable business and economic growth."