Strategic sourcing
The AOC Strategic Sourcing Unit’s primary function is to identify and qualify new sources of supply for high spend and/or strategically important commodities, for which we have inadequate source coverage.
Our team is skilled in locating and identifying new sources of supply that can comply with Saudi Aramco’s stringent technical and quality requirements; and providing market intelligence to add value to the supply chain.
AOC Strategic Sourcing acts as a bridge between Saudi Aramco and its suppliers in Europe and the Asia Pacific region.
Saudi Aramco’s annual capital investment program requires a world-class supply chain management organization to support it. Strategic Sourcing is a cornerstone of this support. This level of investment means that significant business opportunities exist for currently approved manufacturers as well as for new manufacturers able to supply the specific commodities we are interested in.
Identifying and qualifying new sources of supply for high spend/strategically important commodities reduces supply risk and increases competition, which can result in more competitive pricing.
We also promote local content by encouraging manufacturers to increase their presence in Saudi Arabia, either by manufacturing locally or providing local technical support and after-sales services, e.g., repair or maintaining stock of their products, in Saudi Arabia.
Increasing local content is important, not only because it reduces the length of the supply chain through technology transfer and creation of job opportunities for the workforce in Saudi Arabia, but also benefits the Saudi economy as a whole.
An inside story
We are actively engaged in a program to encourage companies to build manufacturing facilities in Saudi Arabia and have already been successful in engaging a number of manufacturers to commence manufacturing in the Kingdom. Many more have been introduced by AOC’s Sourcing Unit to Saudi Aramco, and with our help are preparing their feasibility studies.
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If you are interested in becoming an AOC approved supplier, please visit our doing business section.
