Case Study: Solving the Supply Chain with SAP Systems

⇨ Approximately 47% of supply chain professionals emphasize the need for resilient supply chains that can withstand disruptions, while 35% focus on agility for quicker responses to volatility.

⇨ Fragmented data sources and quality issues are identified by over half of surveyed professionals as the major barrier to leveraging data, analytics, and automation in supply chains.

⇨ Amey successfully integrated a custom subcontractor management solution with SAP systems, resulting in improved standardization, visibility, and efficiency in contract management, with plans for expansion to other sectors.

In a recent SAPinsider report on supply chain challenges, approximately 47% of SAP Insiders emphasized the need for resilient supply chains capable of withstanding disruptions, recognizing that stability and recovery are essential components of a robust and proactive supply chain. Conversely, 35% emphasized agility, aiming for faster responses to volatility. The major barrier to supply chain success? Over half of surveyed supply chain professionals identified fragmented data sources and data quality issues as the primary hindrance to optimal use of data, analytics, and automation tools. 

Amey, a major provider of engineering, operations, and decarbonisation solutions in the UK, faced such challenges in managing its subcontractor contracts. With the value of subcontractor contracts reaching millions annually, the process involved numerous manual steps, including SAP ECC and Excel spreadsheets, which were inefficient and prone to errors. The lack of standardization across different business areas led to poor data quality, inconsistent tracking of contract details (such as insurance certificates and expiry dates), and a lack of visibility on spending, causing delays and potential uncontrolled costs.

Amey’s goal was to replace legacy supply chain systems and manual processes with a robust, end-to-end solution that would integrate subcontractor management from contract creation to payment. 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. Additionally, Amey wanted a solution that would work seamlessly with its supply chain partners and subcontractors, which number in the thousands, to ensure smooth operations and cost control.

To achieve this, Amey partnered with leading provider of SAP usability software Arch Consulting to develop a custom subcontractor management solution. This was done using three key products from Arch: Stelo, Floe, and Looply. Stelo, Arch’s in-house framework for Fiori processes, integrated with SAP ECC, enabling the creation of vendor purchase orders and managing the approvals workflow. It also generated task orders, linking subcontract work to contracts in SAP.

Floe, Arch’s email and document generation app, automated communication with contractors by generating supplier emails and HTML documents. These included detailed task order breakdowns, payment information, and all supporting documents, which were stored in an accessible SAP repository. This automated approach eliminated the need for time-consuming manual communication and ensured that all relevant information was stored in a central, easily accessible location.

The third key component, Looply, was configured using SAP BTP to handle Task Order Request approvals within Microsoft Teams. A cloud platform developed by Arch, Looply streamlines communications within complex SAP systems. With the Teams integration, managers could receive, approve, or reject task orders directly from adaptive cards in Microsoft Teams, improving efficiency and making the process more user-friendly for managers who were often out in the field. Looply also managed the approval flow, including situations where multiple or secondary approvers were required, and provided status updates at each step.

The new system brought significant benefits to Amey’s subcontractor management process. By integrating the entire subcontractor workflow into SAP ECC, Amey achieved greater standardization and visibility. The automated approval process reduced administrative time, allowing teams to focus on cost control, spend management, and building stronger relationships with subcontractors. Arch’s solutions also improved data accuracy, with a data cleanse program introduced to ensure that the back-end data in SAP was accurate and up to date.

Another benefit was the reduced number of helpdesk queries related to invoice status, as all supporting documents were now easily accessible in SAP. Also improved was the ability to track and manage compliance with client contracts, including monitoring subcontractor insurance certificates to reduce liability.

Following the successful implementation in the Transport and Infrastructure sector, Amey plans to expand its improvements to other sectors, including Rail in 2025. The new system is expected to provide better metrics for operations, supplier negotiations, risk management, and procurement performance. It will also support more accurate cost tracking for future bids, improving cost forecasting and procurement planning, bolstering supply chain success.

Overall, the solution has improved data visibility, process efficiency, and subcontractor management for Amey, allowing the company to better control costs, reduce manual workloads, and improve operational efficiency within its supply chain.