SACO

The vision

The majority of non-Saudi Aramco employees were looking for quality products such as those manufactured in their western countries.

The vision of Sheikh Abdulaziz was provide the community with new products is desirable and does not exist The beginning was in a special exhibition With simple products not available in the domestic market

This company has branches in Saudi Arabia and Kuwait.

the story behind the success

out of Sheikh Abdulaziz vision in 1985 he began to import the unique tools and started an exhibition selling tools that no one on the market has.

He began to expand and opened three Branches in different places that helped him spread the reputation of the company.

Nowadays, there are about Thirty - two SACO retail outlets in such eighteen cities, which are spread throughout the kingdom

Purpose

The main purpose of SACO company is to offer unique and new thing in the Saudi market. And SACO aims at providing products in the competition levels, with a competitive prices in such a suitable places, which are the nearest for their customers.

Organizational Structure

starting with the CEO of SACO Sameer Alhamidi who is n charge of orientation the strategies for the company.

SACO’s board of directors consists of nine members, who are voted once every 3 years, the last board, which is active now had been voted in 2017.

the most important members are the CEO , CFO and CIO.

Mohammed Abdulkhalid is the CFO who is responsible for running the financial business of the company.

Ra’ed Ayyoub is the CIO who is responsible for laying the baselines for designing technology infrastructure and developing a unified information systems strategy.

but the most important members are the CEO , CFO and CIO.

Handheld Laser Barcode Scanner

CCTVs

Barcode system used to encode information in an optical pattern readable by Handheld Laser Barcode Scanner, to track and prosses the data efficiently, and monitoring prices, goods, and stock levels for centralised registration in a computerised system.

Closed-Circuit Television (CCTV) is a system that consists of hardware devices; camera, lens, monitor and recorder. It is legal security system provides evidence if crimes or misuse occurs.

Hardware

Inventory management machine

Automated inventory control systems operate by scanning bar-codes on either element. The bar-code scanner is used to read the bar-code and read the encrypts encrypted information, and transfer them to the central computer system (RPA) then tracks this information.

Item Feedback

Firms are pursuit customer feedback tools to success, which they place customers at the core of their business, and that can increase their profit by 60%.

IRA

Contributions to the Individual Retirement Account or Annual Installment (IRA) have prepared for each plan participant (SEP-IRA).

Software

SAP

make firms production cycle more profitable, which provides items investigation, send and receive the transaction between store to store and to prepare reports in addition to other services.

personal information

when needed

Timesheet

Daily attendance is recorded by Timesheet, which recognises the fingerprint twice a day upon entry and checkout.

If the employee records the cellphone number of the customer, he will be able to access the personal information when required, like billing and maintenance purposes.

Technology

Services

STO

From store to a store, they request the items from another store, and it will be delivered instantaneously.

Network

SACO company are using Fiber Optic Automatic System as internet infrastructure, and that includes six various internet providers. For instance, STC, ZAIN, Mobily and ITC - Integrated Telecom Company, to ensure that the Internet is not entirely interrupted when an Internet server malfunction occurs.

Data Management Technology

SACO used to use the Oracle system to organise, manages and processes business data concerned with inventory, consumer and providers. Still, after their issuing shares (IPO) in 2013, It became a joint-stock company, so they improved their Infrastructure and services, now they are using the SAP system.

Stand-alone photovoltaic system

* This system helps Saco as it works as an emergency solution to turn on the lights and appliances when it is shopped off.

*The business will not stop in this way and they can continue there works and serve their costumers.

* This system contain with solar charging module, storing batteries, and regulators (controllers).

• Solar charging module, to charge the batteries with energy during a day.
• Batteries to store energy and charge regulators to control the whole system.

GPRS and GSM systems

GPRS or Global Packet Radio Service

* Unlike GSM system, it use Packet-switching techniques.

* besides, it allows to the mobile handset to get higher data speed than GSM.

* It works on one or more frequencies out of frequency bands that support the radio.

GSM or Global System for Mobile communications

* This system converts and compress the data together and than send it to down channel with two streams of user data.

* It holds 2G technologies.

* And it uses circuit-switching traffic.

* It works on only two frequencies.

(MHz. 1800, MHz. 900)

* Saco uses these systems, because it does not need cables unlike mobile lines, so it helps in keeping users online without interruptions.

Eligibility

SACO concerned with the clarity, which is always over the customers expectations, they also consider getting feedback from all levels, starting with their employees, and finalizing by their customers.

Improved decision making:

SACO improved their decision making by using the real-time data to keep their mangers updated about every thing happening in the company so they could improve the decision making .

SACO has such a perfect decision making system, which ensures that customers get the most perfect service, with high quality.

SACO has a competitive advantage of providing various unique products that are only available in SACO in large quantities with suitable prices that competitors can't provide.

Competitive advantage:

SACO uses SAP system instead of Oracle system , SAP system is the best statistical system in the world.

Survival:

One of the disadvantages of the SAP system is the high cost of the system.

advantages of SAP system:

making transactions between store to store and rechecking of an item easier and with the high speed of its process make the cost worth it.

Transaction processing system

SACO uses (SAP) to perform (TPS) functions such as:

- Recording sales and essential informations and details about their products and about the availability of their products

- keeping track of their products and shipments to gain customer's satisfaction

decision support system

SACO uses (SAP) to perform (DSS) functions such as:

-Using automatic fixed active. If the sales exceeded the fixed active number, the system will automatically increase the fixed active number for the next month to match the sold quantity .

-Helping with “zero inventory “ in which the system will automatically alert the employees if the item has not been sold for a long time to identify and fix the issue.

Management information system

SACO uses (SAP) to perform (MIS) functions such as:

SACO use the (SAP) system to calculates hardware, tools and things written in the table and reports about them day by day, reports on how many days before they sold, how many customers entered, each section of SACO how much money they earned at the end of the day.

SACO use the (SAP) system also to see how much they collected at the end of every month. After the ratio according to the division every month they have a certain amount of money to achieve then the system will do a report for every section if they achieved the target or not.

Purpose, goals, and objectives

Saco company

* Started as a vision of Sheikh Abdul-Aziz

* It is purpose to provide high quality products that are not available in the usual markets.

* It has many types of hardware and software.

- For hardware, it has:

• Handheld Laser Bara code scanner.
• Inventory management machine.
• Closed circuit-Television (CCTV).

-For software, it has:

• Lease line within B2B system.
• SAP system.
• Item Feedback.
• IRA.

*As an internet infrastructure, it use Fiber Optic system.

* For organizing, managing and processing business data, Saco use Oracle system.

* Saco benefited from technology three things:

• Timesheet to recognize fingerprint.
• Personal data to record information about customers.
• STO to request the items from other stores.

* To solve and prevent issues, Saco use:

• Stand-Alone system as an auxiliary solution to turn on the lights and appliances.
• GSM and GPRS systems to keep users online without interruptions.

* As an operational excellence for them:

• They add gift and loyalty cards for its customers to get benefits.
• With the help of SAP system, they increased their efficiency.

* Saco added: online exclusive free delivery for purchases over 499 SAR and it provides installation service for products purchased from Saco only.

* Saco give to its costumer five year warranty, so they can continue paying during this period.

* To survive, Saco switch from oracle system to SAP.

* Saco use four systems to manage their decisions:

• TPS to record sales and to fill information about products.
• DSS to inform employees about the items that have not sold for long period.
• MIS to calculate many things like daily reports, numbers of customers, how much they gained at the end of months.
• ESS to conduct all operations such as adding tax on the products.