Saudi Oger, one of the region's leading construction companies, has decided to implement a pioneering e-procurement solution provided by Aregon, a global B2B digital marketplace and e-business solution provider and PwC Consulting, a business of PricewaterhouseCoopers.
The move is aimed at significantly increasing productivity, improving efficiency and reducing costs. Aregon will undertake deployment and configuration, supplier adoption, e-cataloguing and hosting services, while PwC Consulting will provide strategic direction, in addition to introducing business process transformation.
"The Saudi Oger assignment is another opportunity to deliver the innovations of e-procurement to the region's construction sector," said Hazem Malhas, chief executive officer, Aregon. "The Aregon/PwC alliance will help Saudi Oger pioneer the adoption of e-procurement and strategic sourcing in their business practices in the Kingdom. We are very excited to work with Saudi Oger and are very keen to demonstrate the tangible benefits of the two companies' combined solutions to our valued client."
"The new e-procurement initiative will help turn Saudi Oger into a truly worldclass, state-of-the-art operation," said Saudi Oger's procurement division manager Farid Chaker. "We are confident that this proposition from two leading companies in their fields of expertise represents the most comprehensive solution for our needs."
According to the benchmark set by Aberdeen Research, a leading IT market analysis and positioning services firm, e-procurement solutions are capable of realising an increase of up to 50 per cent in operational profits for every five per cent reduction in the cost of procured goods and services.
Among e-procurement's many benefits are improved operational cost-efficiencies, reduced procurement lead times, elimination of unnecessary paperwork and increased efficiency in procurement and supply chain processes.
"Major corporations in the region are embracing e-procurement solutions because they believe in the business benefits that come from improving procurement and supply chain management processes," said Nasser Massoud, director of PwC Consulting.
Saudi Oger was founded in 1978 and has since grown into a leading force in construction projects throughout the Middle East, Africa, Europe and the US.
Aregon, founded by Aramex and Citibank, is a global, business-to-business digital marketplace and e-business solutions provider serving the Middle East, North Africa and Indian Subcontinent. The portal is powered by Commerce One's Net Market Maker and Microsoft's Commerce Server 2000 and Biztalk.
PwC Consulting is the management consulting services of PricewaterhouseCoopers.