Saudi Aramco is a global supplier of crude oil and refined products whose mission continues to be the most reliable supplier of Hydrocarbons. Such a supplier needs a comprehensive supply chain management system to service its global customers with objectives to meet the reliability, safety, flexibility and cost-effectiveness. The key to success for developing and maintaining such an all-inclusive and 24/7/365 reliable supply chain management system must include a wide array of well defined and well tested processes that describe the business logistics, scheduling, inventory management alongside the finance and treasury critical processes with adequate details and checks and balances. There must be a robust verification and confirmation of all transactions that must obtain the necessary approvals with pre-determined workflow across different functional organizations and departments to safeguard the corporation and its business.
The business of crude oil export sales includes a wide array of business activities that goes on both in sequential and in parallel processes. The Information Management is the key to all critical decision making. The complex role of Information Technology Management includes the logistics of supply, transportation and distribution - terminals in and out-side Kingdom, ports, and pipelines.
This paper describes Saudi Aramco's Hydrocarbon Supply Chain Management (HSCM) system that is comprehensive, fully integrated and efficient solution, covering the entire gamut of crude oil and refined products export business process chain from sales contract creation and management to the final settlement. It has covered many organizations of the oil business such as oil supply planning, domestic and international sales & marketing, finance, accounting & billing, cash management & treasury, logistics, inventory management, corporate planning, overseas offices, inspection companies and overseas storage. Furthermore, it covers certain specific operations such as target production avails management and OPEC production limit compliance, loss control and potential demurrage control.
The HSCM system provides various crude oil lifting reports by customers, by country, by region, by crude grade - which is used as an efficient tool for market analysis - and pricing recommendation.