Scania transforms procurement and collaboration with LTM on AWS

As part of the Traton Group—which includes MAN, International (formerly Navistar), and Volkswagen Truck & Bus—Scania plays a central role in a broader strategy to implement a common modular system across all brands. Procurement activities are essential to sourcing common parts across the group, and Scania’s systems needed to support this cross-brand collaboration digitally. However, the existing procurement environment was not built for this scale. It lacked robust role-based access controls, creating compliance and security risks as more group companies needed to interact with the system. Meanwhile, the process for creating prototype parts orders relied on complex manual workflows that introduced delays and slowed time to market for new vehicle programs.

On the supplier side, engagement was equally fragmented. Scania’s supplier communication ran through a costly legacy portal that offered limited customization and did not support streamlined onboarding or real-time updates. Suppliers struggled with inefficiencies around document submission, clarifications, and alerts, which impeded the transparent collaboration that modern supply chains demand. “We reached a point where our legacy systems could no longer keep pace with the strategic direction of the group,” says Aishwarya Gundaiah, senior manager IT procurement at Scania. Scania recognized that without a modernized cloud foundation, it could not fully support the Traton Group’s strategic direction or unlock the potential of emerging technologies such as AI.

LTM worked with Scania to deliver a comprehensive procurement transformation program built on secure, cloud-based technologies using AWS. The initiative focused on two core solutions designed to address both internal procurement workflows and external supplier collaboration.

The first was a unified procurement portal—a single, web-based application that streamlined purchasing of common parts across all Traton Group companies. LTM designed the solution with strong authentication and secure role-based access so that each brand could interact with the system safely and in compliance with regulatory requirements. The portal introduced several key capabilities: a streamlined prototype order-creation process that replaced complex manual workflows; a part price history tool giving purchasers instant access to historical pricing data and strengthening their negotiating position; a material group classification system for more efficient procurement planning; and integrated collaboration tools for seamless communication across teams. The second was a modernized supplier communication portal that replaced the legacy IBM-based system with a modern AWS environment. LTM developed a public portal that supports role-based access for applications, alerts, and documentation, giving suppliers a single, reliable point of engagement with Scania. The new solution supported streamlined onboarding, near real-time updates, and standardized e-invoicing formats, fundamentally transforming how Scania and its suppliers work together. “The procurement transformation journey undertaken goes beyond traditional application modernization. It is about streamlining processes, simplifying the technology landscape, and building a future-ready foundation for continued innovation. The work reflects LTM’s domain expertise and AWS capabilities that together created a scalable and agile procurement environment,” says Venkat Agarwal, associate vice president and country head for Sweden at LTM.

Both solutions were built entirely on AWS, featuring services including Amazon Simple Storage Service (Amazon S3)—an object storage service—for hosting and document storage and AWS Lambda for serverless compute and integrations. For database management, the solutions use Amazon Aurora MySQL-Compatible Edition, which provides high performance and availability at global scale. The supplier portal runs on AWS Elastic Beanstalk—a service to migrate, deploy, and scale applications—and uses Amazon Elastic File System (Amazon EFS) for serverless, fully elastic file storage. Scania also uses Amazon Simple Email Service (Amazon SES) for email communications. With this cloud-based architecture, Scania gained the scalability and flexibility to extend procurement capabilities across the group without the constraints of legacy infrastructure.

The unified procurement portal supports cross-brand usage with a modern user experience, achieving robust security across all Traton Group brands through role-based authentication. Prototype order cycle times were reduced by up to 5 percent, supporting quicker procurement and faster product iterations. Teams gained instant access to part price history and market trends, empowering them to negotiate better contracts and drive cost optimization. With the modernized, scalable architecture, Scania can now deploy new features rapidly and extend procurement capabilities to group companies, boosting both capital expenditure savings and operational agility.

On the supplier side, the modernized communication portal supports stronger collaboration by providing seamless communication and clearer alignment with Scania’s expectations, fostering long-term partnerships. Standardized e-invoicing formats support more than 80 percent digitalization in invoicing without service interruptions during demand peaks. Issue resolution improved by up to 5 percent through direct access to support teams and self-service capabilities—reducing back-and-forth communication and accelerating resolution times. “The collaboration with LTM was instrumental in addressing some of the pain points from legacy systems by modernizing our key applications on AWS,” says Gundaiah. “This transformation journey was one of the key examples of how digitalization can not only accelerate strategy implementation on a corporate level but also opens up possibilities for using advanced technologies like AI that require solid technical foundations in source systems.”

LTM is an AWS Premier Tier Consulting Partner qualified with several AWS Consulting Competencies, specializing in cloud-based application development and digital transformation, and helping enterprises modernize critical business systems using AWS services.