SAP VARs and AMS: Minimising Risks Whilst Maximising Efficiency
Many businesses using SAP, default to receiving Application Management Services (AMS) from their Value Added Reseller (VAR), who will provide their enterprise support. While there are certainly benefits to a single provider approach, there are also advantages to bringing in a separate partner for AMS. This blog will explore some reasons why you may want to consider this.
Reducing complexity is understandably a big priority for many companies, so the idea of having “one throat to choke” is an attractive one, i.e., having a single point of accountability for any issues that arise. However, this has to be weighed up against the potential cost of not having a partner in place that specialises in AMS, and in particular specialises in the areas that underpin your business.
A big draw to VARs is the potential reduced cost of enterprise support and the future SAP licence discounts they can generally offer. These commercial benefits are usually the main basis on which a VAR is selected, as opposed to their AMS offering. However, many businesses will nonetheless end up moving their AMS to this same VAR. When you consider that only about 5% of support tickets on average require enterprise support via SAP, this can mean that these businesses are not receiving specialised support for the other 95% of their tickets.
If your business relies heavily on a specific SAP solution like, for example, Extended Warehouse Management (EWM) partnering with a VAR that lacks deep knowledge of EWM could be risky. The cost of downtime can be substantial, potentially amounting to thousands of pounds per hour if an issue isn’t rectified quickly and effectively. In this instance, having a separate AMS partner with expertise in EWM ensures that your critical operations are supported by the best possible knowledge and skills.
This is a great opportunity to consider what the key areas of your operation are, that would have the most detrimental impact if something went wrong. This will give you a better idea of what your priorities are while searching for a provider for your AMS that can help resolve your crucial tickets, continually evolve and improve the way you do things and, ultimately, get a return on your substantial solution investment.
Making the most of the respective strengths of different types of partnerships, you can benefit from cost savings without compromising on the quality and efficiency of your SAP AMS support. A VAR can provide you with competitive pricing and future licensing discounts while a specialised AMS partner can support the most critical areas of your business. By doing so, you can ensure that your business receives the best possible support, minimising risks whilst maximising efficiency.
The Config Team combines deep SAP expertise with a collaborative approach to help businesses unlock the full potential of their supply chains. Get in touch at [email protected] to learn more.
