Transforming mobility: SAPTCO's journey to digital transformation and commercial sustainability

The Saudi Public Transport Company (SAPTCO) partnered with PwC Middle East to implement an Oracle ERP solution aimed at modernising operations and accelerating its transformation into SAPTCO 4.0 in line with Vision 2030 goals for sustainable urban mobility. The publicly owned transport organisation has been a lifeline for mobility across the Kingdom for more than 45 years. Over 60 million passengers travel on its urban, intercity and international bus lines every year. SAPTCO also delivers a range of maintenance, logistics, and digital mobility services, aimed at advancing safe, efficient transportation. It is integral to Saudi Arabia's public mobility infrastructure, aiming to support Vision 2030 by improving public transport accessibility and reducing reliance on private vehicles. The organisation also collaborates with international partners to expand service quality and reach.

Transforming mobility: SAPTCO's journey to digital transformation and commercial sustainability

Client

Saudi Public Transport Company

Industry

Mobility and transport

Our role

Developing an Oracle solution

Includes

Oracle Fusion Cloud ERP

Background to the project

Initially established as a government-subsidised entity, SAPTCO has now turned its focus toward achieving commercial sustainability. SAPTCO’s transformation objectives centre around modernising Saudi Arabia's public transportation by enhancing operational efficiency, adopting digital solutions and expanding service offerings. The goal is to support sustainable urban mobility, reduce environmental impact and provide more accessible, reliable and customer-centric transport options across the Kingdom. This includes a shift toward smart transport systems, leveraging data analytics and enhancing user experience through advanced technology integration. SAPTCO’s ERP transformation journey, aptly named "Tamkeen" (تمكين), embodies the essence of empowerment, modernisation, and digital enablement. This initiative is not just about upgrading technology; it’s about equipping SAPTCO with the agility, intelligence, and efficiency needed to drive Saudi Arabia’s future mobility landscape.

Prior to partnering with PwC Middle East, SAPTCO relied on an on-premises Enterprise Resource Planning (ERP) system, powered by Oracle E-Business Suite (EBS) R12 to manage backoffice processes. Additionally, the organisation’s centralised approach to performance management impacted control and visibility over crucial functions such as finance, human capital management and procurement. This system required extensive manual intervention, limiting operational visibility and efficiency. While EBS was fully integrated into SAPTCO's operational systems, performance monitoring was a challenge, impeding SAPTCO's progress towards its strategic transformation goals and its shift to a more autonomous, data-driven operational model.

As part of the Tamkeen ERP transformation programme, SAPTCO's reenvisaged its operating model with strategic imperatives including growth of business and operational accountability of business lines, with a view to enabling scalability as per business needs.

Our role

As a result of an earlier consulting engagement, where we helped SAPTCO institutionalise a business unit-oriented performance management framework, PwC Middle East had already gained the client’s trust. This experience provided valuable insights into the organisation’s operations, operating model transition and transformation agenda. Additionally, our alliance with Oracle and proven expertise in delivering ERP and cloud transformations – both globally and in the Middle East – positioned us as an ideal partner for this project

For this project, we partnered with SAPTCO to modernise its operations by implementing Oracle Fusion Cloud ERP. Our solution was designed to streamline processes, improve data visibility and empower individual business units to manage performance independently. To ensure effective adoption, we conducted a series of training workshops, equipping SAPTCO staff with the skills and knowledge needed to operate the new system effectively. This strategic approach facilitated SAPTCO's transition towards a more autonomous and efficient operational model.

At PwC Middle East, we are committed to driving meaningful transformation through technology and innovation. Our collaboration with SAPTCO on the Tamkeen ERP transformation programme has created enhanced operational efficiency, empowering data-driven decision-making for an organisation that plays a pivotal role in the Kingdom’s mobility sector. Through the implementation of Oracle Fusion Cloud ERP, we are dedicated to ensuring a seamless and value-driven transition for SAPTCO from ground (on premise Oracle EBS R12) to cloud (Oracle Fusion Cloud ERP). We look forward to supporting the team as it advances its digital transformation journey.

Mansoor Siddiqui, Engagement Director, PwC Middle East 

The solution – how we helped

After overcoming several challenges – including managing large volumes of data ahead of the migration, varying levels of SAPTCO employee readiness for the change and maintaining alignment across joint teams throughout the project – we tailored Oracle Fusion Cloud ERP to meet SAPTCO’s specific needs, enhancing data visibility and streamlining processes.

By transitioning from on-premises systems to cloud applications, SAPTCO can now take advantage of regular updates from Oracle that include new features, enhancements and patches. This ensures that the organisation remains at the forefront of technological advancements. In the near future, SAPTCO plans to further enhance its analytics and reporting capabilities with system-enabled enterprise performance management, simplifying performance analysis and planning for both individual business units and the organisation as a whole.

The new system seamlessly integrates various business functions, including finance, human capital, payroll, supply chain, maintenance, depot and subscription management, providing real-time data access and comprehensive reporting. This empowers business units to manage performance independently, ensuring efficiency and accuracy. We also embedded advanced analytics and AI capabilities within the system to provide actionable insights and support data-driven decision-making. Clear performance metrics were established to monitor progress and ensure optimal operation, with individual business units better able to gauge and improve their performance through access to independent financials. Our team also conducted technical sessions and change management initiatives, guiding employees through the new workflows and addressing their concerns.

To ensure the system’s long-term success, we designed training workshops to equip SAPTCO staff with the skills needed to operate and sustain the new system effectively, fostering continuous improvement and organisational resilience.

This approach ensured a smooth transition to the new platform, with SAPTCO seeing improved operational efficiency, better data management and enhanced decision-making capabilities, positioning the company for sustainable growth.

Impact and potential

The implementation of Oracle Fusion Cloud ERP has significantly improved SAPTCO's operational efficiency, data management and decision-making capabilities. The company now benefits from faster, more accurate processes, reduced reliance on manual workarounds and enhanced financial and operational data visibility. Notably, SAPTCO recently completed its first-ever multi-ledger quarterly closing and is confident that the new Oracle system will support faster, more accurate financial, regulatory and management reporting.

The Oracle Fusion Maintenance Cloud has also transformed SAPTCO’s maintenance processes, including asset monitoring, automated service estimates, enhanced customer billing for both internal and external clients and preventive maintenance capabilities. This implementation enables transformation across major transportation sector scenarios, including billing based on standard hours and actual resource usage costs. Additionally, it ensures seamless management of spare parts and service warranties, Customer SLAs with features like free parts replacements, free preventive maintenance, kilometer-based billing, and effective handling of insurance scenarios. These advancements underline Oracle Fusion Maintenance Cloud's pivotal role in optimising SAPTCO's operational excellence. This has resulted in improved equipment reliability, which has strengthened the organisation's overall financial and operational management.

Looking ahead, SAPTCO plans to leverage advanced analytics, automation and AI capabilities within Oracle Cloud solutions to further enhance operational insight and efficiency, supporting its journey towards greater autonomy and commercial sustainability.

These advancements are crucial for SAPTCO’s need to transform, enabling the organisation to stay competitive and meet the evolving demands of its stakeholders. The use of predictive analytics and automated reporting will help SAPTCO’s decision-makers anticipate and address the needs of employees and customers, reinforcing its commitment to excellence and innovation.

For any ERP implementation to succeed, having the right partner is crucial - one that understands the organisation and remains flexible and agile throughout the journey. The 'Tamkeen' ERP transformation programme will be a key enabler in SAPTCO’s shift towards greater operational efficiency, enhanced customer experience, data-driven decision-making and sustainability. We are pleased to collaborate with PwC Middle East and leverage their expertise and implementation methodology for this project. We look forward to successfully continuing this partnership in the future.

Khalid AlZahrani, Group Chief Financial Officer SAPTCO

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