A value chain analysis for Saudi Aramco involves examining the primary and support activities that

contribute to creating value for the company. Each component plays a vital role in ensuring operational
efficiency, product quality, and overall competitiveness. Here’s a detailed analysis of Saudi Aramco’s
value chain:

### Primary Activities

1. **Inbound Logistics**

- **Recruitment for Exploration and Drilling**: Saudi Aramco focuses on attracting skilled personnel to
manage and operate its exploration, drilling, and pipeline maintenance activities. This ensures that the
company has the necessary human resources to efficiently handle its substantial crude oil reserves.

- **Material and Equipment Handling**: Efficiently managing the supply of materials and equipment
needed for oil extraction and production operations. This includes maintaining strong relationships with
suppliers to ensure timely and cost-effective procurement.

2. **Operations**

- **Oil Exploration and Production**: Utilizing advanced technologies for oil exploration and drilling to
maximize efficiency and output. Continuous innovation in extraction methods enhances productivity.

- **Refining and Processing**: Operating some of the world’s most advanced refineries to convert
crude oil into valuable products like gasoline, diesel, and petrochemicals. Quality control processes
ensure that products meet international standards.

- **Training Programs**: Implementing comprehensive training programs to ensure a skilled

workforce capable of maintaining high standards of production and refining efficiency.

3. **Outbound Logistics**

- **Distribution Network**: Saudi Aramco maintains a vast distribution network, including pipelines,
shipping terminals, and a fleet of tankers to deliver products globally. This ensures efficient and reliable
delivery to customers.

- **Collaboration and Coordination**: HR facilitates effective collaboration among logistics and

transportation teams to ensure smooth and timely product delivery.

4. **Marketing and Sales**

- **Brand Identity**: Leveraging Saudi Aramco’s strong brand and reputation in the global market to
attract and retain customers.
 - **Skilled Marketing Personnel**: Supporting marketing efforts with skilled personnel who can
effectively promote Aramco’s products and services. This includes business development initiatives in
the downstream sector.

5. **Service**

- **Customer Support**: Providing exceptional customer service, including technical assistance and
after-sales support, to maintain customer satisfaction and loyalty.

- **R&D Talent**: HR plays a crucial role in attracting and retaining talent for research and
development to drive innovations that maintain a competitive edge.

### Support Activities

1. **Firm Infrastructure**

- **Facilities Management**: Efficiently maintaining oil fields, refineries, and distribution networks to
ensure smooth operations and minimize downtime.

- **Technology Infrastructure**: Implementing robust IT systems to support exploration, production,

and overall business operations. This includes leveraging data analytics, AI, and automation for
enhanced operational efficiency.

2. **Human Resource Management**

- **Workforce Planning**: Recruiting, training, and retaining skilled personnel to support various
operations. Ensuring that the company has a competent workforce to drive its business activities.

- **Employee Relations**: Fostering a safe and productive work environment that encourages
employee satisfaction and retention.

3. **Technology Development**

- **Research and Development**: Investing in R&D to innovate oil extraction and refining
technologies. This includes sustainability initiatives to reduce environmental impact and enhance
operational efficiency.

- **Digital Transformation**: Utilizing data analytics, AI, and automation to streamline operations,
improve decision-making, and boost productivity.

4. **Procurement**
 - **Supplier Relationships**: Building strong partnerships with global suppliers to secure the best
equipment and services. This helps ensure quality and timely delivery of necessary inputs.

- **Contract Management**: Effectively negotiating and managing contracts with suppliers to

optimize costs and ensure reliable supply chains.

### Summary

Saudi Aramco’s value chain is characterized by its integration of advanced technologies, efficient
logistics, strong supplier relationships, and a skilled workforce. By focusing on these areas, Aramco
ensures operational excellence, product quality, and sustained competitive advantage in the global oil
and gas industry. Each activity within the value chain contributes to creating value, enhancing
productivity, and maintaining the company’s leadership position.