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Streamlining Purchaser sub-contracts and payments: Amey’s digital transformation

Key Takeaways

⇨ Amey is implementing a transformative digital innovation strategy to centralize data management and streamline the subcontractor process, enhancing communication and operational efficiency.

⇨ The new integrated purchasing solution utilizes technology from Arch, including the Stelo, Floe, and Looply products, to automate task order approvals and improve data visibility and control.

⇨ Post-implementation, Amey has seen reduced administrative burdens, improved cost control, and efficient tracking of procurement processes, supporting seamless operations across its extensive subcontractor network.

Amey has introduced an end-to-end solution for the management of subcontract purchase orders, with approvals in Microsoft Teams

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Amey is a major provider of full life-cycle engineering, operations and decarbonisation solutions for transport infrastructure and complex facilities across the UK.

Opportunity

Creating an integrated purchasing solution

Amey works closely with their supply chain partners and with thousands of subcontractors to deliver projects. Their processes and systems used to capture and communicate contracts had seen some challenges. The introduction of transformational digital innovation presented an exciting opportunity.

“During the initial requirements gathering, it became clear that various contracts employed different subcontractor management methods, which led to numerous manual administrative tasks, consuming significant time from daily operations. Important information was often spread across personal emails and individual drives, complicating the process further. The new system now centralises all data storage, ensuring that information can be easily retrieved in the future. As a result, we have improved cost visibility and a standardised process across the ensure business.“ Holly Winn-Butler, Commercial Manager

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The aim was to streamline communication with contractors, improve task order approvals as issued to the supply chain, and enhance visibility and control over procurement processes. Amey wanted a solution that would work seamlessly with its supply chain partners and subcontractors, to ensure smooth robust operations and cost control.

Solution

Harnessing technology to deliver an automated process

Objectives

• Bring the entire sub-contractor process into SAP ECC to introduce standardisation and visibility
• Create an easy to navigate user experience for the Operations and Commercial teams
• Automate communication with contractors
• Timely review and approval of works to be issued to the supply chain

Working with Amey, Arch delivered an end-to-end sub-contractor custom solution using three of its products, Stelo, Floe and Looply

The Stelo framework handles the integration with SAP and has been used to develop the Fiori Vendor Purchase order creation app, which captures data required by both SAP to create a purchase order and by the wider procurement process. Stelo also delivers the workflow behind the app, managing approvals and triggering the creation of the task order (sub-contract purchase order) in SAP with reference to a contract.

Floe, the Arch email and document design and generation app, creates all supplier email communications and HTML outputs. Data from both the purchase order and the app are sent to contractors via email with attachments automatically added. The HTML documents are generated showing the detailed breakdown of the sub-contract instruction or Task Order and details of payments made against a contract. All supporting order documents are now held in an easily accessible repository in SAP.

“The Arch software developed for the TO process has given us as an organisation the ability to create a standardised approach to Task Orders & managing subcontractors payments. ​It has a provided a firm approval process on task orders via MS Teams. This new process speeds up the approvals process and has provided visibility on tasks and costs to the wider operational, commercial and financial teams, allowing us to follow an automated process instead of the previous manual intervention when the AFP is received. ” ​

– Alana Murray, Commercial Manager TI Hub

Amey were keen to embrace new technology and implement Looply, configured using SAP BTP to deliver Task Order Request approvals in MS Teams using Adaptive Cards.

Both the Commercial and Operations teams use these cards to receive, and approve or reject notifications. This approach is a good fit for their managers who are infrequent users of SAP ECC and who spend much of their time in MS Teams and out and about, managing approvals using their mobile phones.

Notification cards with status updates are sent at each step. Looply handles the requirement for complex approvals, including where second or multiple approvers are involved in the process.

The particular challenge was to understand how best to display the data to be shown on the Task Order Notification Request in an easily accessible format. Harnessing technology in Microsoft Teams, Looply delivered ‘show and expand’ functionality to make the display of the large volume of data user-friendly.

“”Amey has had a long standing valued relationship with Arch. They have been able to deliver simple to use solutions regardless of the complexity of the business requirements. We love that this is all delivered within one product stack. By delivering these apps in Fiori and MS Teams, our migration to S/4 HANA will be seamless, ensuring the solution continues to function smoothly.” 

– Andy Croston, Amey Principal SAP Architect

Impact

Data visibility, efficiency and control

A Transport and Infrastructure contract was chosen for the pilot implementation. The integration and transparency of the new process brought to light the importance of data  quality in ensuring the successful roll-out of the process. Amey introduced a master data cleansing program, simplifying the process for users entering details for new orders in the app.

With the new systems delivering higher data quality, compliance and standardisation, the time spent on administrationhas started to fall, freeing up time to manage and control spend. There has also been a significant reduction in the previously high number of calls to the helpdesk.

 

“All supporting documentation is now stored in an easy access SAP repository, allowing the Commercial teams to quickly retrieve contracts and address potential queries while ensuring compliancy with client contracts.The process is a lot quicker than it was in the old system and allows for increased cost control on the contract.” 

– Nichola Harris, Principal Commercial Manager Area 10

The Stelo-enabled Fiori app has allowed Amey to effectively integrate data from production and procurement. In the future, they will look build on this data by including sales and distribution data. They are now also able to review and track costs accurately for future bids.

Following the successful implementation of the initial contracts, the roll-out within Transport and Infrastructure continues, with Rail planned for 2025.

Once fully implemented across all contracts, the implementation will have far-reaching benefits. It will provide better metrics across operations, including risk analytics, supplier negotiation, working capital, monitoring of material cost and procurement performance.

Amey’s network of subcontractors work across multiple contracts. With a new consistent process and a  single point of access for procurement, supplier relationships are far more robust.

“The Area 10 commercial team are all very happy with the new task order raising/approval system. The entire process is more fit for purpose, automated and saves a lot of time that would have normally been spent on a more manual process.”

– James Thorley, Commercial Manager Area 10

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