Impact of Erp Systems on Operational Efficiency at Amazon
Paras Goyal
MBA (Masters of Business Administration)
Abstract
This study investigates the impact of Enterprise Resource Planning (ERP) systems on operational efficiency at Amazon, a global leader in e-commerce and cloud computing. ERP systems are integral to modern business, integrating core processes and facilitating data-driven decision- making. Amazon employs a sophisticated mix of commercial (e.g., SAP, Oracle) and proprietary ERP solutions to manage its vast and complex operations, including procurement, inventory, warehouse management, and order fulfilment. The primary purpose of this research is to understand ERP's role in Amazon's supply chain and logistics, analyse its impact on key performance indicators such as cost reduction, order accuracy, and process automation, and identify potential best practices. The study utilized a hybrid research methodology, commencing with an exploratory phase involving literature review and analysis of secondary data, followed by a descriptive phase centred on a quantitative survey. The survey gathered data from 92 professionals with experience in ERP systems and operations, many familiar with Amazon or similar large-scale environments. Key findings indicate a strong positive perception of ERP's impact on reducing order processing time, enhancing inventory accuracy, and improving interdepartmental coordination. However, challenges related to system usability, technical glitches, and the need for comprehensive user training were also identified. The study concludes that while ERP systems significantly contribute to Amazon's operational prowess, continuous improvement in user experience and ongoing support are crucial. Recommendations focus on enhancing user training, simplifying interfaces, improving system performance, establishing robust feedback mechanisms, and leveraging key performance indicators to track ERP impact. This research contributes to the understanding of ERP effectiveness in high-volume, technology- driven organizations.
List of Abbreviations: ERP: Enterprise Resource Planning; KPI: Key Performance Indicator; AWS: Amazon Web Services; UX: User Experience.
