SAP partners with Saudi Aramco to create digital business marketplace
SAP Cloud Hub will launch soon as part of the IT major's four-year $76mn investment plan in the Kingdom
Information Technology major SAP is partnering with Saudi oil giant Aramco in creating a new solutions platform to enable Saudi Aramco to launch a digital business marketplace with thousands of Saudi Aramco buyers and suppliers in partnership with its flagship product SAP Ariba.
Saudi Aramco says the move forms part of its digital transformation strategy and will help it and its global subsidiaries to manage and simplify real-time collaboration between their buyers and suppliers.
The deal will make it the Kingdom’s first company that will run solutions on the SAP Cloud Hub, which will launch soon as part of SAP’s four-year SAR 285mn or approximately $76mn investment plan in the Kingdom. As a result, the firm will be able to run cloud-based business applications to optimise business processes and costs, and enhance customer and supplier relationships.
“Saudi Aramco is showing global leadership in digital business innovation in the oil and gas sector. 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,” Ahmed Al-Faifi, managing director of SAP Saudi Arabia, Bahrain, and Yemen, was quoted in a press release received by Arabianoilandgas.com.
Using SAP Ariba, Saudi Aramco can capitalise on several solution functionalities, including e-Bidding, e-Sourcing, Contracts Life-Cycle Management and Supplier Onboarding, to create a collaborative supply chain environment that will enhance supply chain efficiency and open wider business opportunities for the local and regional supplier-base.
SAP Ariba combines cloud-based applications with the world’s largest Internet-based trading community to help companies discover and collaborate with a global network of partners. Companies around the world have been using the software to simplify inter-enterprise commerce and enhance the results that they deliver.
“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” said Mohammad AlZaubi, global director for Saudi Aramco, SAP, reportedly remarked.
Through the SAP Ariba source-to-pay applications, buyers and suppliers worldwide have benefitted from 60% lower costs, at least 50% greater efficiency, at least 5% more sales, and about 15% improved customer retention.