Saudi Basic Industries Corporation (Sabic) has set up a separate entity known as Sabic Services Limited (SSL) to consolidate all procurement activities of its affiliates.
SSL, based in Jubail, is currently engaged in building the foundation for an entire network of services for Sabic, its affiliates and Research and Technology (R&T) division.
The vision behind SSL was the application of best procurement practices utilising the experience and expertise of Sabic affiliates to build a central organisation managing the internal supply chain by leveraging the purchasing power of all Sabic entities.
SSL, through its consolidated procurement organisation (CPO), has fully integrated four manufacturing affiliates to its central systems - Samad, Ibn Sina, Ar Razi and Safco/Ibn Al Baytar.
As Jassim A Al Sayegh, general manager procurement support services of SSL explains: ''Our mission was to create an enterprise-wide computer system that would support world-class procurement organisation to manage Sabic businesses in the most efficient and cost effective way using best practices."
With full integration, the CPO is managing the entire procurements supply chain of these affiliates. This covers planning and purchasing, warehouse management, inventory control through to distribution of materials and spare parts.
SAP was selected as the system solution after careful study of the magnitude of the Sabic business involved.
The first complete integration of all required functions of Samad was effected in July last year. Ibn Sina followed in September, Ar Razi in November and Safco/Ibn Al Baytar in December.
According to Khalid Abdulelah Al Obeid, assistant maintenance manager of Samad, the functioning of the new system is certainly more efficient and cost effective.
Al Sayegh anticipates that all affiliates will be on-line and fully integrated into CPO by the end of this year. SSL has, after successfully deploying SAP R/3 release 3.1H, already commissioned SAP 4.6 which went live in April. Thus, SSL is ensuring that maximum functionality such as e-procurement and Web enablement is available on its company system. In fact, the 4.6 release has an Internet transaction server.
