Case Study: Saudi Arabia Vs. The Globe

Good Essays
igure 13. Saudi Arabia vs. The Globe (Nelson Complexity Index)
Saudi Arabian refineries stand at 6.0, i.e. below the global average of 7.9. The reason for low NCI is because historically Saudi Arabian focus was on upstream business and refineries have been an addition to meet local demand. In the past couple of decades, the demand has grown significantly requiring more complex refineries. Furthermore, Saudi Arabia’s strategic vision to be self-sufficient and net exporter of fuels in the future lead to joint ventures with several International Oil Companies (locally and globally) and as a result the complexity has been growing lately. The old NOCs had an average complexity of 4.4, whereas the more recent JVs have a complexity of 7.3. YASREF
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Enterprise Service Bus
As per figure 13, each function has its own view of the supply chain management and maintain preserved tools to the point it is essential to tie these various angles into one thorough view. The comprehensive view will outline all opportunities (e.g. means of conflicts) to be addressed appropriately. A major key challenge in the industry is to identify a holistic view of the business even though the company adopted world-class tools and applications.
In order Saudi Aramco accomplish and maintain excellence in supply chain, it must create an integrated supply chain network (i.e. big data management). The required stages to implement the proposed framework of Saudi Aramco are as follow:
• Data integration across different tools and applications towards big data
• Review and validation of data to understand the variations of different cycles
• Analysis step help to assist tracking and valuation along with What-If Scenarios
Therefore, any opportunities or disturbances that arise in the market can be acted upon to maximum advantage. An integrated supply chain system shall provide a strong view for:
• The anticipated view of the planning and scheduling horizon
• The clarity into
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supply shortage
• A mutual alignment of capturing opportunities
• The practice of what if analysis (i.e. opportunities and threats)
In addition to the benefits expressed above, adoption of such a solution brings Saudi Aramco closer to the realization of Industrial Internet of Things.
2. Demand Satisfaction Behavior (Saudi Aramco v.s. IOCs/PEIs):
Wholesale marketing behavior is different between IOCs/PEIs and Saudi Aramco. Table 7 explains the significant difference in customer satisfaction behavior, delivery, allocation and regulation. In Saudi Aramco, demand satisfaction is mandatory and there are no sales “contracts” per se within the Kingdom. As a result, the Wholesale marketing concept is not applicable within the context of Saudi Arabia. Table 7
Customer Satisfaction Approach – Aramco versus IOCs & PEIs
Demand & Customer Satisfaction Approach
NOCs (Saudi Aramco’s)
IOCs/PEIs
Product must be delivered (No monetary compensation)
Can be compensated if the product is not available (after

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