ASMO launches procurement services and begins operations at second warehouse in Saudi Arabia
· Strengthening national supply chain capability through integrated procurement and logistics operations
· Advancing a scalable supply chain model aligned with Aramco’s priorities and Vision 2030
ASMO, a joint venture between Saudi Aramco Development Company and DHL, has commenced its procurement services for general supply materials, issuing its first purchase orders for Aramco in July, 2025, and launching warehousing operations at its second site in Saudi Arabia: the Jazan warehouse. These milestones are part of ASMO’s phased national rollout under its 15-year strategic agreement with its anchor customer, Aramco, and support Saudi Arabia’s Vision 2030 agenda by localising supply chains and strengthening the Kingdom’s logistics infrastructure.
“With the start of procurement services for general supply materials and the transition of Jazan warehousing operations to ASMO, we’re laying the foundation for a new era to transform and revolutionise supply chains, not only for Aramco but also for the Kingdom and broader region,” said Sulaiman M. Al Rubaian, SVP of Procurement & Supply Chain Management at Aramco. “It’s early days, but the momentum reflects the dedication of our joint teams and the strength of our shared vision with ASMO. ASMO aims to bring greater control, visibility, and responsiveness to our supply chain, and strengthen our ability to plan, source, and operate more efficiently. As ASMO continues to scale, it intends to play a key role in supporting our operational priorities and national supply chain goals.”
Phased approach
ASMO is adopting a phased approach to its procurement rollout, extending through 2027 and aligned with customer operations. It begins with General Supply, followed by MRO, Drilling & Chemicals, and Projects materials. This structured approach ensures scalability and supports evolving operational priorities across the supply chain.
In parallel, ASMO has begun operating the Jazan warehouse, an Aramco owned facility, located within the Jazan Refinery Complex. Now under ASMO management, the facility supports Aramco downstream, fire protection, distribution, and terminal operations. The transition is aimed to strengthen supply chain resilience, enhance operational efficiency, and improve responsiveness to customer demand of critical MRO inventory items.
“Delivering on procurement and logistics for Aramco is a responsibility we approach with focus and intent,” said Craig Roberts, CEO of ASMO. “These are foundational steps, building trust, generating measurable value, and setting the stage to scale an integrated supply chain model across the Kingdom. This progress reflects the dedication of our growing team and the strong coordination with Aramco through the ASMO Transition & Oversight team, whose structured approach has been key to a successful rollout.”
ASMO’s model is designed to integrate procurement, warehousing, inventory management, and logistics into a unified digital platform. While currently being rolled out in phases, this system will ultimately improve visibility, simplify decision-making, and unlock economies of scale. Built to serve Aramco and a broader base of industrial customers, including in energy, chemicals, healthcare, and aviation, it also supports localization, supplier development and broader national goals.
Since the announcement of its establishment in 2024, ASMO has signed 26 MoUs with strategic partners, launched operations in Riyadh and Jazan, and commenced procurement services for general supply materials. Early development efforts are also underway for future facilities in SPARK, Jubail, and Yanbu, alongside plans to scale its digital procurement platform into a full B2B e-marketplace.
Looking ahead, ASMO aims to operate more than 8 million square meters of warehousing, manage over 500,000 inventory items, and oversee procurement activity valued at over USD 8 billion by 2030, positioning both ASMO and Saudi Arabia at the centre of a modern, resilient, and globally competitive supply chain network.
