Aramco-dhl joint venture ASMO set to transform future supply chain
Dammam, Saudi Arabia – German logistics company DHL and Saudi energy giant Aramco have formed a joint venture seeking to shape the future of logistics supply chain.
At a ceremony last week in the eastern Saudi city of Dammam, the new joint venture called ASMO (Advanced Supply Management Operations) was revealed as a new procurement and logistics services hub.
The joint company aims to further streamline supply chain processes in a sustainable and efficient way, said executives from the companies involved.
'ASMO is envisioned to meet the growing demand for more sustainable and efficient supply chain services in Saudi Arabia, while at the same time reflecting the expanding market potential of the region as a global trade gateway for the energy, chemical, and industrial sectors,' said a post-ceremony press release.
'In a world challenged by supply shortages, logistics disruptions, and rising costs, ASMO is poised to emerge as a regional supply chain hub, covering supply chain services from procurement to logistics, warehousing, and even a B2B e-marketplace for customers,' it added.
Hendrik Venter, the CEO of DHL Supply Chain in Europe, the
Middle East, and Africa, gave an exclusive interview to Anadolu Agency on the new venture’s aims and ambitions.
“Three-and-a-half years ago, senior management from Aramco and DHL got together and discussed using Aramco's ecosystem, specifically their technology and technological expertise in the fuel technologies combined with DHL as the global logistics leader,” he said.
Venter said Saudi Arabia’s goal of becoming a logistics hub also contributed to the founding of the joint venture. He stressed that they want to provide small, medium and local companies, in addition to global customers, “the opportunity to have access to vetted and qualified suppliers with ethically sourced products.”
“With that, these companies will have access to procurement efficiencies, in addition to an
end-to-end supply chain management service. By having more efficient and effective procurement practices, they can do away with unnecessary excess stocks, freeing up capital so that they can focus on their own businesses,” Venter added, pledging that a more streamlined supply chain will “also drive down carbon emissions.”
“ASMO will be focusing on energy, but also on the chemical and the industrial sectors. We will also focus on spare parts, including valves, pipes, bolts, and anything else whose supply chain can be more streamlined, thus resulting in an improvement in carbon emissions,” he added.
“This will be a significant overlap in the products which these companies use. So, if you can combine all of that volume and scale, you provide better procurement practices for everybody,” he stressed.
The executive also stressed the significance of “backhaul kilometers,” adding that trucks should return to their point of origin fully loaded so that energy efficiency and workload is optimized in the best way possible.
Use of AI crucial
Venter also said that advanced technologies, especially artificial intelligence (AI), will play a pivotal role in the operations of ASMO.
“ASMO will certainly use a tremendous amount of data, capabilities of AI, robotics and other technologies,” he said.
“If we can use the data more effectively, we can improve forecasting, we can improve anticipation and planning and it could therefore have benefits in terms of sustainability and effectiveness of end-to-end supply chain management,” Venter said.
“We will also use automation and robotics,” he added, saying that “robotics will work alongside humans, which will have added value.”
“We will use technology and robotics to do repetitive tasks, heavy lifting, and potentially dangerous activities. Those will be done by technology and robotics while the human aspect will continue to add value,” he said.