IMPACT OF SAP ERP IMPLEMENTATION ON PURCHASING PERFORMANCE A CASE STUDY OF PAKISTAN PETROLEUM LIMITED

Abstract

In the evolution of a competitive global environment, most organizations have pressure for building their operational and strategic processes more effective and efficient. An ERP system is a collection of modules that may enhance the effectiveness of companies as well as employees. Accordingly, several organizations have selected an ERP system for implementation to improve the efficiency & effectiveness of the organizations. Purpose - The main purpose of the study is to evaluate the impact of SAP ERP implementation on purchasing processes of Pakistan Petroleum Limited (PPL). A controlled research has been undertaken, studying the causes that impact on procurement performance. Particularly, the researcher studies the impact of cost, quality and delivery on procurement performance. Methodology/sample - The research paper has been conducted by reviewing the general literature of ERP & SAP ERP systems and impact of purchasing processing. A case study of PPL (Oil and Gas Industry) was used to successfully complete this study. Personal interviews and structured questionnaires were used to collect the data, targeting procurement staffs of PPL who were involved in purchasing processes through SAP ERP system along with internal documents. The questions in the questionnaire were designed using Likert scale strategy, which measures respondents’ attitude by asking their level of agreement with most of the SAP ERP procurement processing. To select the sample and sample elements, the study employed purposive sampling. Conclusively, a sample size of 20 staff from purchasing department has been selected. Findings - The study of the research framework and realistic findings has contributed for identification of important effects & consequences when implementing SAP ERP System. The data analyzed using descriptive statistical tools like Mean, median, mode and standard deviations. Software called Statistical Package for Social Sciences (SPSS) was used for the data analysis. The study found out that, the SAP ERP System has a significant impact on procurement performance. From the study conclusions are made.