Picture millions of packages moving through Amazon’s warehouses every day. Most people assume there’s one giant software system running the show. That’s what SAP was supposed to be—sort of the backbone for tracking inventory, managing orders, and making sure nothing gets lost in the shuffle. But is SAP still running the show at Amazon in 2025? Things have changed a lot.
Back in the early days, using a big, brand-name system like SAP made sense. Companies wanted one solution that did everything, from accounting to deliveries. But Amazon is known for building its own shortcuts and custom tools, especially if it means shaving off even a few seconds in their rush to deliver. So, what’s actually running Amazon’s warehouses right now? You might be surprised—it’s not what most people expect.
- How SAP Used to Fit Into Amazon’s Operations
- What Warehouse System Does Amazon Use Today?
- The Reasons Behind Amazon’s Shift Away from SAP
- Lessons for Businesses Choosing Warehouse Software
How SAP Used to Fit Into Amazon’s Operations
Back in the early 2000s, Amazon was growing like wildfire. To keep up, they went with what most big businesses used back then—SAP. SAP is a giant in the ERP world (that’s short for enterprise resource planning), and it’s built to handle everything from inventory numbers to payroll. For warehouse management, SAP’s modules offered detailed tracking of every pallet, box, and item. It sounded pretty great on paper, especially when orders were starting to surge.
Amazon used SAP for things like processing purchase orders, tracking supplier deliveries, and figuring out where every piece of inventory should sit in a massive warehouse. That allowed them to avoid mix-ups, lost products, and delays. It provided some structure when Amazon was shifting from selling just books to, well, pretty much selling everything.
Here’s a snapshot of how SAP fit into Amazon’s early logistics flow:
- Order Management: SAP tracked every customer order and linked it to inventory locations.
- Supplier Coordination: Shipments coming in from manufacturers were logged through SAP, so warehouse teams knew what to expect each day.
- Billing and Finance: Since SAP links warehouses and sales with accounting, Amazon streamlined its invoicing and payments with the same platform.
Those features sound basic now, but they were game-changers when Amazon was scaling up. The trouble started as Amazon’s warehouse network exploded. At one point, according to old tech reports from the late 2000s, SAP just couldn’t keep up with Amazon’s speed and need for flexibility.
If you look at what competitors were doing back then, most stuck with SAP or a similar system for as long as possible. Amazon went another way—more on that next.
What Warehouse System Does Amazon Use Today?
This might come as a shock, but Amazon rarely relies on off-the-shelf software now—not even the big names like SAP. Instead, they've built most of their own warehouse management tools completely in-house. Their custom software goes by a few names internally, but it's usually called Amazon Robotics Fulfillment System (ARFS) or just "AFT" for the Amazon Fulfillment Technologies team.
These systems aren’t just fancy spreadsheets. ARFS and related tools track inventory down to the tiniest barcode and direct floor robots, humans, and packing stations—all in real-time. When you order something, the system figures out which bin your stuff is sitting in, which robot to send, and which human worker might have the fastest route. It’s like a digital air-traffic controller and coach all at once.
One thing that sets Amazon’s system apart from legacy ERP giants like SAP? It handles automation on a mind-blowing scale. We’re talking over 750 fulfillment centers worldwide. Some reports said, as of 2024, Amazon’s software supports more than 200,000 robots and over 1 million workers. This level of control and automation would be tough, if not impossible, using traditional warehouse management software off the shelf.
| Amazon Fulfillment Fact | 2024 Stats |
|---|---|
| Active Fulfillment Centers | 750+ |
| Robots Deployed | 200,000+ |
| Warehouse Employees | 1,000,000+ |
What about other companies who aren’t Amazon—should you try building your own system? Unless you’ve got billions to spend and engineers to spare, probably not. Amazon’s system is a special case. For most businesses, commercial warehouse management software (even SAP) still makes sense. But Amazon isn’t waiting for anyone else—they want tools that flex and adapt as fast as they grow. That’s why they ditched SAP ages ago and never looked back.
The Reasons Behind Amazon’s Shift Away from SAP
You might wonder why a big player like Amazon would ever break up with a powerhouse like SAP. Here’s the straight-up answer: SAP’s one-size-fits-all system just couldn’t keep up with Amazon’s massive, always-changing business.
Amazon’s scale is off the charts. Think about it—those warehouses aren’t just stockrooms. They’ve got robots, conveyor belts, AI-based inventory picking, and millions of different products moving at lightning speed. While SAP handles logistics well for many companies, it wasn’t built for the kind of real-time decisions that Amazon needs to make in seconds, not hours.
Speed tops the list of reasons. Amazon needed a warehouse management tool that could process updates instantly and work with lots of custom devices. SAP’s system, while powerful, could slow things down when you’re trying to ship something across the country within the same day.
- Flexibility: Amazon regularly experiments with new warehouse tech, from advanced sorting machines to drones and automated carts. They wanted software they could tweak in-house, fast.
- Customization: Off-the-shelf solutions like SAP just aren’t customizable enough for the wild ideas Amazon’s engineers come up with. They want to try out a gnarly new way of storing packages? They need the freedom to code it in, without waiting for a vendor update.
- Cost: Running SAP at Amazon’s scale racks up huge licensing and maintenance bills. By building their own tech, they control costs and avoid expensive upgrade cycles.
- Integration: Amazon’s own ERP tools loop everything in—from customer data to shipping trucks—so nothing gets lost between systems. That level of integration is tough with outside vendors.
Here’s a peek at how different the numbers look for big companies using SAP compared to those building their own tech:
| Company Size | Warehouse Updates (per second) | Typical SAP Setup Cost |
|---|---|---|
| Standard Retailer | ~1,000 | $2 million+ |
| Amazon (Custom Stack) | 50,000+ | In-house, ongoing |
So, when you’re dealing with millions of orders and a constant push for faster shipping, even a trusted system like SAP can’t always keep up. Amazon needed something that moved at their speed—and they built it themselves.
Lessons for Businesses Choosing Warehouse Software
If you’re on the hunt for warehouse management software, watching what giants like Amazon do is smart. But here’s the thing: what works for Amazon won’t always work for everyone. Amazon outgrew SAP because they wanted total control and could build their own tools. Most businesses don’t have a tech army or a billion-dollar budget. It pays to be realistic about your needs—and your limits.
- Know your requirements first. Don’t just chase big names like SAP. Map out your workflows. Are you shipping a hundred orders a day or a hundred thousand?
- Look at integration. It’s a pain when your sales, warehouse, and shipping systems don’t talk to each other. Make sure your warehouse management platform fits with your current tech.
- Scalability matters. You might be running a small operation now, but what about next year? Pick a tool that won’t box you in as you grow.
- Support and updates are huge. It’s tempting to go for cheap options, but saving a few bucks on software that no one can fix will end up costing more later.
Some warehouse software options (other than SAP) that real businesses use in 2025 include Manhattan Associates, Oracle WMS Cloud, and even open-source tools like Odoo for smaller operations. For most companies, a hybrid approach works—maybe a cloud solution for everyday inventory, with something custom-built to handle one unique problem.
| Software | Best For | Monthly Cost (Est.) |
|---|---|---|
| Manhattan Associates | Large, complex warehouses | $4,000+ |
| Oracle WMS Cloud | Medium to large businesses | $1,500+ |
| Odoo | Small businesses | $30-$100 |
| SAP EWM | Multi-national & enterprise ops | $3,000+ |
Here’s a quick tip: demo as many platforms as you can. Push their support teams with real-life problems during the trial. It’s the only way to see if a system helps or just gets in the way. Don’t forget to ask about analytics and mobile features. Tracking mistakes and fixing them on the fly is what keeps modern logistics running smooth. The big takeaway? What powers Amazon isn’t just a brand—it’s stubborn focus on fitting tools to their needs, not the other way around.
