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ASMO Launches Procurement Services and Second Saudi Warehouse

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ASMO procurement services have officially begun, marking a major step in strengthening Saudi Arabia’s national supply chain. The joint venture between Saudi Aramco Development Company and DHL issued its first purchase orders for general supply materials in July 2025. In addition, ASMO has started warehousing operations at its second Saudi facility in Jazan.

These developments are part of ASMO’s phased rollout under its 15-year agreement with Aramco. The program supports Vision 2030 goals by localizing supply chains and improving logistics infrastructure.

Driving National Supply Chain Transformation Through ASMO Procurement Services

“With the start of procurement services and the transition of Jazan operations to ASMO, we are laying the foundation for a new era in supply chain transformation,” said Sulaiman M. Al Rubaian, SVP of Procurement & Supply Chain Management at Aramco. He added that ASMO aims to bring more control, visibility, and responsiveness to operations. This will help Aramco plan, source, and operate more efficiently.

The phased rollout will run through 2027. It will start with General Supply and expand to MRO, Drilling & Chemicals, and Project materials. This approach ensures scalability while aligning with changing operational needs.

ASMO Procurement Services Expanding Logistics Capabilities in Jazan

The newly transitioned Jazan warehouse is located within the Jazan Refinery Complex. It now supports downstream, fire protection, distribution, and terminal operations. This move boosts supply chain resilience and speeds responses to critical MRO inventory needs.

A Unified Digital Supply Chain Model

ASMO’s model combines procurement, warehousing, inventory management, and logistics in a single digital platform. Once fully in place, it will improve visibility, simplify decisions, and unlock economies of scale. Furthermore, the system will serve not only Aramco but also sectors such as energy, chemicals, healthcare, and aviation.

Since its founding in 2024, ASMO has signed 26 MoUs and launched operations in Riyadh and Jazan. Development of new sites is underway in SPARK, Jubail, and Yanbu. By 2030, ASMO aims to manage over 500,000 inventory items and oversee procurement valued at more than USD 8 billion.

Check our previous coverage: Cloudera Network Observability Expands with Taikun Acquisition

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