ASMO, JP Morgan to explore digital financing tools for supply chain

ASMO, the joint venture between Saudi Aramco Development Company and DHL, is exploring new financing solutions with J.P. Morgan to strengthen supply chain and logistics operations in Saudi Arabia. The collaboration is aimed at improving access to capital and enhancing the efficiency of end-to-end supply chains.

The agreement focuses on developing tools that help ASMO’s customers manage inventory and working capital more effectively. Off-balance sheet financing solutions are being considered to free up cash tied in procurement and logistics operations, allowing companies to scale their operations without cash flow constraints.

Beyond inventory financing, the two companies are looking at broader trade finance options, including payables and receivables solutions, to streamline the movement of goods and improve supplier-buyer relationships. Faster supplier payments and extended buyer terms can increase supply chain resilience while supporting operational growth.

By integrating digital trade and financing tools into logistics processes, ASMO aims to make supply chains more agile, responsive, and connected. This approach can reduce delays, improve planning, and enable more predictable movement of goods across industrial and commercial networks in Saudi Arabia. The partnership aligns with the country’s focus on modernizing industrial supply chains, enhancing efficiency, and supporting sustainable growth in the logistics and manufacturing sectors.