ASMO, the joint venture between Saudi Aramco Development Company and DHL, has begun its phased national rollout by issuing its first purchase orders and opening a second warehouse, strengthening supply chain localisation and operational efficiency in line with Saudi Arabia’s Vision 2030 goals.
ASMO, the joint venture formed between Saudi Aramco Development Company and DHL, has taken significant strides in advancing Saudi Arabia’s Vision 2030 goals through the launch of its procurement services for general supply materials. In July 2025, ASMO issued its first purchase orders for Aramco, marking a pivotal moment in the company’s phased national rollout under a 15-year strategic agreement with its primary customer, Aramco. Alongside this, ASMO has commenced warehousing operations at its second facility in Saudi Arabia, located within the Jazan Refinery Complex, amplifying its logistical footprint in the Kingdom.
These developments are instrumental in ASMO’s broader ambition to localise supply chains and enhance the Kingdom’s logistics infrastructure, directly supporting the Saudi Vision 2030 agenda. The Jazan warehouse, now under ASMO’s management, is poised to bolster supply chain resilience and operational efficiency, particularly aiding Aramco’s downstream activities, fire protection, distribution, and terminal operations. By taking control of critical maintenance, repair, and operations (MRO) inventory items, ASMO aims to improve responsiveness to customer demand and streamline supply chain operations.
Sulaiman M. Al Rubaian, Senior Vice President of Procurement & Supply Chain Management at Aramco, highlighted the early success and strategic importance of these initiatives. Speaking about the launch, he noted that these foundational steps set the stage for a transformative era in supply chain management—not just for Aramco but for the Kingdom and the wider region. He emphasised that the integrated approach ASMO brings will enhance visibility, control, and responsiveness, enabling more efficient planning, sourcing, and operations aligned with both Aramco’s priorities and national supply chain objectives.
ASMO’s procurement rollout is designed to be phased and scalable, covering general supply materials initially, with plans to extend to MRO, drilling and chemicals, and project materials by 2027. This methodical approach seeks to synchronise with Aramco’s operational needs, ensuring that the supply chain model can flexibly evolve over time.
Craig Roberts, CEO of ASMO, reiterated the commitment to delivering value and trust through these early milestones. He described the integration of procurement, warehousing, inventory management, and logistics operations into a unified digital platform as a key enabler to simplify decision-making and generate economies of scale. Ultimately, this platform will serve not only Aramco but a broader industrial customer base spanning energy, chemicals, healthcare, and aviation sectors, thereby expanding the impact of ASMO’s localization and supplier development efforts.
Since its establishment in 2024, ASMO has made considerable progress, signing 26 memoranda of understanding with strategic partners and initiating operations in Riyadh as well as Jazan. Future expansion plans are underway for additional facilities in SPARK, Jubail, and Yanbu, alongside ambitions to evolve its digital procurement platform into a comprehensive business-to-business e-marketplace.
By 2030, ASMO aims to manage over 8 million square meters of warehousing space, oversee more than 500,000 inventory items, and handle procurement activities exceeding USD 8 billion. These targets underpin Saudi Arabia’s vision to position itself at the heart of a modern, resilient, and globally competitive supply chain network.
ASMO’s integrated and phased development approach illustrates a concerted effort to blend cutting-edge logistics with national economic transformation, reinforcing supply chain sovereignty while aligning with Aramco’s operational ambitions and the Kingdom’s broader industrial diversification goals. As ASMO scales its capabilities, it represents a cornerstone in the ongoing evolution of Saudi Arabia’s logistics and procurement landscape under Vision 2030.
Source: Noah Wire Services
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