Glimpses of Aramco’s Supply-Chain Management Divison BUSI 3322: Supply-Chain Management Name: Mohammed Khalifa Al-Dossary ID: 200800586 Major: Management Information Systems Supervised By: Dr. Shaikh Arifualsalam

Outline 1. Introduction 2. Conceptual Framework 3. Units Functions and Operations 3.1. Contract Services 3.2. Procurement 3.3. Logistics 3.4. Material Control 3.5. Path and Cable 4. Conclusion

1. Introduction In each and every organization should have a supply-chain management. In Saudi Aramco Company, they have supply-chain management as a division under the umbrella of support service application department. The department is accountable for monitoring, updating, and enhancing the processes through: Remedy handling. Data Process Service Request (a request for enhancement in the system). In the Aramoc’s supply-chain division, there are five units namely Contract services. Procurement. Logistics. Material control. Path and cable units.

2. Conceptual Framework Six theoretical concepts that are vital to be understood before emerging in the supply-chain processes for Aramco and they are considered a pre-requisite: Enterprise Resource Planning. SAP System: stands for System Application Products. SQL: stands for Structured Query Language. Project Management. SCM: stands for Supply Chain Management. Quality Management.

3. Units Functions and Operations 3.1. Contract Service Unit In the contract service unit, contracts that are done automatically with suppliers, contracts that are about to expire, and any contract services with suppliers and customers are managed in this unit. Suppliers do the whole process by themselves with the SAP interface (Service Contract Network). They do a lot of operations via SAP system that includes: Managing and updating Long form contract solutions. Mid form contract solutions. Short form contract solutions. Changing the orders’ supplement Handle entry sheet verification solution Tracking procurements Evaluating vendors performance Administrating contractors data Integrating their system with their suppliers.

3. Units Functions and Operations 3.2. Procurement Procurement unit VS Contract service unit Employees of this unit pass over different operations to fulfill unit’s expected outcome. The full procurement process goes in the order as follow: Purchase requisition > Request quotation >>> Purchase order > Develop bid & commodity >>> Issue contract >>> Collaborate supplier network After each full procurement process, procurement unit is expected to maintain B2B relations through SRM system (Supplier Relationship Management).

3. Units Functions and Operations 3.3. Logistics The logistics unit can be considered the most important unit out of the supply-chain division. Employees are delegated to do a lot of functions using different systems within the SAP system such as PETS (Personnel Effect Tracking System) CCP (Cross Company Procurement) RSS (Reclamation Sales System) IAS (IT Assets System) SSP (Service Parts Planning) AWLM (Advance Warehouse Logistics Management) ISS (Industrial Security Systems). As can observed from the systems, this unit has a heavy load of operations. Most vital are: Managing and optimizing electronic and physical inventory. In and out kingdom plants shipping. Managing warehouse. Sales and distribution. Supplying non-material customers. Bar coding. Processing claims. Processing consignments and return. Planning global material transfer.

3. Units Functions and Operations 3.4. Material Control Material control unit complements logistics unit responsibilities. Material control unit is accountable for controlling and maintaining materials within a distribution channel. The unit works with the procurement unit to analyze the firm’s new material requirements and translate it into order means. The unit handles any material within the firm’s warehouse and inventory. In Aramco’s SAP system, they have a huge a respiratory of material e-catalog that is queried using Material Data Management (MDM). The unit functions are MRP and forecasting processes Use SABRE (Saudi Aramco Business Rule Expressions) to handle issue restricted and uniquely stored materials Modify WRAP (Warehouse Purchase Agreement Requirements). Analyze functional and technical specifications Provide technical design and solutions for business applications.

3. Units Functions and Operations 3.5. Path and Cable Unit The path and cable unit is a very small unit that is in charge of three things. First, to monitor and process the automated telephone billing systems. Second, to handle the record management system. Last, to investigate, analyze and design new paths and routes for vendors to interact with the firm’s needs more efficiently and effectively. Most of this unit’s work depend hugely on the logistics and material handling units.

4. Conclusion Today’s supply-chain management department, division, or group is tailored and formulated to the level that meets the company needs. Supply-chain overall main functions (procurement, manufacturing, distribution, retailing, etc.) can be done differently and categorized as fits each firm. A good formulation of supply-chain entity results in supply-chain success, that leads to organizational success. As elaborated in this presentation, Aramco had their own supply-chain hierarchy and process initiation represented by five units. We can deliberately understand why Aramco reached and sustains its leading success through having a powerful supply-chain division.

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