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Company Industry Company Size
Aramco Europe (Aramco Overseas Company B.V.) Oil and gas 900 (employees and contractors)

Executive Overview

Aramco Europe (Aramco Overseas Company B.V.) provides supply chain, technical, and financial support to Aramco companies in Europe, Asia, and Africa. It recently worked to replace legacy on premise systems with a suite of intelligent cloud solutions from SAP with the aim of transforming into an intelligent enterprise. Its new IT backbone running SAP S/4HANA Cloud and additional solutions from SAP is helping improve operations, tighten portfolio oversight and governance, and inform agile decision-making.

Before: Challenges and Opportunities

  • Raise process efficiency and employee satisfaction by relying on standard software instead of customizations
  • Move to the cloud to reduce application management time and costs
  • Enhance visibility across lines of business to support growth and diversification
  • Integrate new solutions to manage finances, suppliers, and HR

Why SAP

  • Longtime relationship with SAP as an ERP customer
  • Trust in SAP’s articulation of the vision of the Intelligent Enterprise with SAP S/4HANA Cloud and SAP Integration Suite
  • Confidence that SAP Ariba, SAP SuccessFactors, and SAP Concur solutions could satisfy procurement and HR needs

After: Value-Driven Results

  • Fewer routine maintenance chores in IT
  • New system simplicity that lightens the load and increases job satisfaction for business users
  • Flexible, scalable platform that will support the machine learning and advanced analytics on the short term road map
  • Speedy return on investment
  • $1 million

    Estimated annual savings

  • 50%

    Reduction in application management efforts

  • 60%

    Reduction in custom code

Aramco Europe

Objectives

Transforming into an Intelligent Enterprise

Aramco Europe is an affiliate of the Saudi Arabian Oil Company (Aramco).

It provides the European, African, and Asian affiliates in the Aramco global enterprise with financial services, supply chain management, technical services, and investment portfolio management. In all its endeavors, it strives to act according to its core values of accountability, citizenship, innovation, integrity, and teamwork.

As an Aramco affiliate, Aramco Europe inherited a copy of the IT infrastructure of Aramco, which had been highly customized to serve one of the world’s largest companies. But as a smaller organization with a more limited mandate , the European offshoot had slightly different business requirements. It needed to negotiate contracts within days compared to the weeks Aramco might legitimately take to do so, for example. The affiliate wanted to adapt to its own specialized needs by streamlining operations end to end and building an intelligent enterprise to keep up with the fast-evolving demand for its services. Pressing challenges in its specific arena included tightening cash management, instituting functionality to oversee procurement, and improving self-service for employees.

Equally important was future-proofing operations with an integrated, flexible, scalable system that would support innovations to harness new technologies such as machine learning and blockchain.

Solution

Reinvigorating Multiple Lines of Business

Aramco Europe deployed SAP S/4HANA Cloud along with SAP Ariba solutions to manage suppliers and SAP SuccessFactors solutions and SAP Concur solutions to manage HR and travel expenses. Prebuilt integration flows in SAP Integration Suite connect them all smoothly with one another, eliminating many customizations.

Experts from both companies produced a full service intelligent enterprise, with a powerful yet flexible framework for all ongoing operations and forthcoming innovations. During the COVID-19 pandemic, its employees continued to work alone after a short delay, so the full project took only 12 months of effort. Among key outcomes is a fully automated quarter-end closing-and-reporting structure to capture the financial performance and risk management strategy of the investment portfolio worth US$27.8 billion.

Human capital management leaders advocated early for change. Employees were asking for user-friendly, self-service functionality not present in the legacy system. SAP SuccessFactors solutions were a natural remedy, primarily because SAP and Aramco Europe shared a similar vision. SAP Concur solutions next made short work of expense report management, building in a link to a leading credit card company to manage charges to its accounts and an interface to integrate with the third-party payroll-service provider.

The procurement function had weathered legacy frustrations as well, and its staff eagerly embraced SAP Ariba solutions and Ariba Network – now SAP Business Network – for use in self-service procurement. Functionality for guided buying is one of the next features the company plans to implement.

SAP S/4HANA Cloud makes us more efficient by helping the finance team monitor actual spend against estimates on the services we provide to Aramco and affiliated companies.
Ton Zoetbrood CFO, Aramco Europe
Two technicians work on an oil drilling rig.

Results

Tallying the Benefits

As a newly minted intelligent enterprise, Aramco Europe has significantly increased process efficiency for delivering support services across Europe, Africa, and Asia.

The company has implemented market-standard processes in the cloud, reducing its application management load. Stakeholders everywhere have deeper insight into operations, and the company is well positioned to pilot new technological and business innovations. The new flexible and scalable model can be used as a template for potential reuse in similar service companies.

With the move into the intelligent suite in the cloud, users can perform activities such as booking a business trip or viewing a list of suppliers from anywhere with an Internet connection. User
interfaces are intuitive, and transactions are streamlined, enhancing the user experience. Self-service has improved engagement and productivity. Transparency over risk and opportunity in the
investment portfolio supports wise decision-making. And managers have visibility into the costs of their services to Aramco affiliates and are well positioned to adopt the SAP Analytics Cloud solution and emerging technologies such as machine learning.

Future Plans

Paving the Way for Future Innovation

Like its long-term partner SAP, Aramco Europe has innovation in its DNA.

Designed to support continuous improvement, the agile intelligent enterprise framework the company has now built is a model for other Aramco companies looking to future proof operations. Meanwhile, the affiliate is investigating other potential new initiatives, and the next stop on the road map is integrating the SAP Analytics Cloud solution.

Featured Solutions and Services

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Sourcing for Indirect and Direct Materials

Source services, indirect materials, and direct materials using SAP Ariba Sourcing, SAP Source-to-Contract Suite, or SAP Strategic Sourcing Suite.

See sourcing software options
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Guided Buying

Guided buying delivers a simple experience for purchasing goods and services. It guides employees to use preferred suppliers, processes, and policies, resulting in happy employees and compliant spend.

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Ariba Network

Ariba Network is now SAP Business Network, the world's largest business network and a dynamic, digital marketplace where companies connect to get business done.

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