SAP is partnering with Saudi Aramco in creating a new solutions platform to enable Saudi Aramco to launch a digital business marketplace with thousands of Saudi Aramco buyers and suppliers in partnership with SAP Ariba.

Saudi Aramco says the move forms part of its digital transformation strategy and will help it and its global subsidiaries to manage and simplify real-time collaboration between their buyers and suppliers.

The deal will make it Saudi Arabia’s first company that will run solutions on the SAP Cloud Hub, which will launch shortly as part of SAP’s four-year SAR 285 million investment plan in the Kingdom. As a result, the firm will be able to run cloud-based business applications to optimize business processes and costs, and enhance customer and supplier relationships.

Using SAP Ariba, Saudi Aramco can capitalize on several solution functionalities, including e-Bidding, e-Sourcing, Contracts Life-Cycle Management and Supplier Onboarding, to create a collaborative supply chain environment that will enhance supply chain efficiency and open wider business opportunities for the local and regional supplier-base.

SAP Ariba combines industry-leading cloud-based applications with the world’s largest Internet-based trading community to help companies discover and collaborate with a global network of partners. Companies around the world use the software to simplify inter-enterprise commerce and enhance the results that they deliver.

“Saudi Aramco is showing global leadership in digital business innovation in the oil and gas sector. Through the SAP Cloud Hub, SAP continues to co-innovate with the Kingdom’s leading players to drive Saudi Vision 2030 digital transformation and support Saudi job creation through our academies,” said Ahmed Al-Faifi, Managing Director of SAP Saudi Arabia, Bahrain, and Yemen.

“Using the Ariba business platform, Saudi Aramco buyers and suppliers can gain new levels of business competitiveness, and simpler, smarter sourcing. SAP fully supports Saudi Aramco’s digital transformation agenda for long-term and sustainable business and economic growth” said Mohammad AlZaubi, Global Director for Saudi Aramco, SAP.

Through the SAP Ariba source-to-pay applications, buyers and suppliers worldwide have benefitted from 60 percent lower costs, at least 50 percent greater efficiency, at least 5 percent more sales, and about 15 percent improved customer retention.