How we work with suppliers
AOC works with approved suppliers to provide Saudi Aramco with the materials, technologies and services it needs. Our supply chain management processes ensure optimum quality, cost and delivery.
We strive to deliver world-class supply chain services. We pursue business relationships based on cooperation, trust, reliability and communication.
Key supply chain strategies
We pursue a number of key supply chain strategies:
- Competitive bidding, which provides the transparency AOC requires.
- Where appropriate, total cost of ownership will be the basis for selection, rather than initial acquisition price.
- Outsourcing procurement of selected commodities and logistics activities.
- Corporate level agreements to consolidate materials, spare parts and services spending.
- Expanding purchase agreement coverage.
- Utilizing and supporting best-in-class suppliers.
- Maximizing e-procurement.
Purchasing guidelines and Contracting
AOC’s purchasing activities are governed by the following:
- All transactions are conducted fairly, honestly, with professional integrity and in accordance with the highest ethical standards and all applicable laws.
- Quality, delivery, price, supplier reliability, operational costs, after-sales support, end-use cost, work simplification and standardization in making placement decisions.
- Purchases are made from reliable, financially and technically qualified sources.
Purchasing process and Contracting
- AOC has standard conditions of purchase that comply with the laws of the countries in which we operate.
- All procurement activities are fully monitored by an online information system.
- AOC’s materials procurement cycle is based on structured procedures.
Manufacturing in Saudi Arabia
AOC supports the growth of Saudi Arabia’s economy by encouraging suppliers of selected products to consider and evaluate the viability of manufacturing these products in Saudi Arabia. To assist in this evaluation, AOC is able to facilitate a meeting with Saudi Aramco’s New Business Development, Local Enterprise Development Division (LEDD). Among other things, LEDD assists potential local manufacturers by providing product usage data and help in preparing business plans. More information on this subject can be obtained by contacting AOC’s Strategic Sourcing Unit.
Capital program sourcing
A large percentage of materials, technologies and services supporting Saudi Aramco’s capital program and various joint-venture partnerships is sourced by LSTK contractors worldwide. For information on supply chain opportunities in these areas please communicate with the respective contractor directly.