How to Write an ERP RFP
Write an RFP to clearly define your needs, compare vendors, and secure a solution that aligns with your business goals
Skip the RFP if your organization is small or your needs are simple, as a direct vendor discussion might be quicker
Achieve a better fit and pricing by using an RFP to gather detailed proposals and negotiate effectively
Need expert help selecting the right tool?
An RFP, or Request for Proposal, is a document you use to solicit bids for a specific project or service. It's especially useful when you're looking to implement a new enterprise resource planning (ERP) system.
It’s beneficial for CFOs and other financial leaders looking at different vendors and weighing their cost options.
Crafting a well-thought-out RFP can help you streamline vendor evaluation and reduce risk. It ensures you ask the right questions and get the details you need to make informed decisions.
By focusing on what your business truly needs, you can find a solution that aligns with your goals without unnecessary complications.
Here’s how to get started.
Do You Actually Need an RFP?
An RFP is essential when your ERP software needs are complex or industry-specific. If your organization operates in a regulated industry or requires high customization, an RFP can help ensure you cover all bases.
It’s also important for when you need to compare multiple vendors to find the best fit for your budget and business processes. Here are the most common circumstances where an RFP is necessary:
- High customization needs
- Operating in regulated industries
- Large-scale ERP implementations
- Comparing multiple vendors or ERP types
- Long-term strategic investment
When an RFP Might Be Overkill
If your organization is small, your needs are straightforward, or you have a preferred vendor, an RFP might not be necessary. In these situations, direct discussions could be more efficient.
Need expert help selecting the right tool?
Top ERP To Consider
For those seeking to craft an ERP RFP, you first need to know which vendors you’d like to reach out to. Here’s my list of the top 10 ERP options available, to help you get started in your search:
- 8. NetSuite ERP
- 10. Total ETO
RFI vs RFP vs RFQ: What’s the Difference?
Understanding the differences between RFI, RFP, and RFQ can help you choose the right document for your needs.
An RFI gathers information, an RFP seeks detailed proposals, and an RFQ requests pricing. Not every purchase requires an RFP; sometimes, selecting a RFQ or RFI might be a better fit. Here’s a look at when you might use each option:
| Document Type | Purpose | When to Use | What to Include | Level of Detail Required |
| Request for Information (RFI) | Gather general information about ERP automation and solutions | When you’re exploring options and need a broad understanding | Company background, product offerings, general capabilities | Low |
| Request for Proposal (RFP) | Obtain detailed proposals for ERP solutions | When you need specific solutions and vendor comparisons | Project scope, technical requirements, evaluation criteria | High |
| Request for Quotation (RFQ) | Request pricing for a defined ERP solution | When you know exactly what you need and require pricing | Itemized pricing, terms, delivery timelines | Medium |
Common RFP Mistakes to Avoid
Rushing or skipping key details in the RFP process can lead to confusion, wasted time, or vendors that don't fit your needs. By avoiding these common mistakes, your team can create a smoother ERP selection journey:
Insufficient Background or Context
Without enough background or context, vendors can't tailor their proposals to your needs. This leads to generic responses (and a potential new ERP system) that don't address your specific challenges.
Make sure to provide a clear picture of your business, scalability and growth goals, and current systems to ensure vendors understand what you're looking for.
Missing or Unclear Budget
Failing to include a budget or being vague about it can lead to proposals that don't align with your financial capabilities.
Always be upfront about your budget restrictions and expectations. Even if your budget is less than what the average ERP system costs, sharing it ahead of time allows vendors to help you find a solution that hits all your requirements within your price range.
Vague Requirements or Legal Jargon
When your ERP requirements are vague or filled with legal jargon, vendors might misunderstand what you need. This results in proposals that miss the mark.
Use simple, clear language to outline your requirements and any additional features you may need (like human resources, procurement processes, or project management), so things don’t get lost in translation.
No Evaluation Criteria Shared
Not sharing evaluation criteria leaves vendors guessing about what you value most, which can result in misaligned proposals.
Make sure to clearly state how you'll assess proposals, including any specific priorities. This helps vendors focus their responses on what matters to you.
No Standard Format for Vendor Responses
Without a standard response format, comparing proposals and RFP responses becomes difficult and time-consuming.
Always specify the format you want vendors to follow, such as sections or templates. This makes it easier to evaluate and compare different proposals side-by-side.
Assemble Your ERP RFP Team
Creating a strong RFP isn’t a solo job. Oftentimes, the best ERP RFPs reflect the input and needs of a cross-functional group. By involving the right people early, you reduce risk and avoid rework later. These are some of the top people to involve and why:
Project Sponsor
The project sponsor champions the ERP initiative and ensures alignment with business goals. They provide oversight and ensure the project gets the necessary resources and support. Typically, this role is filled by a senior executive like a CFO or COO who can make strategic decisions when it comes to total cost and other initiatives.
Functional Experts
Functional experts bring deep knowledge of specific areas like finance, HR, or operations. They help define detailed requirements and ensure the ERP system meets departmental needs. These experts are often heads of departments or senior managers who understand the intricacies of their functions.
Procurement or RFP Writers
Procurement professionals or RFP writers ensure the document is clear, comprehensive, and compliant with procurement policies. They bring expertise in crafting documents that solicit the best responses from vendors. This group often includes procurement managers or experienced RFP consultants.
End Users and Stakeholders
End users and stakeholders provide insights into daily operations and practical needs. Their input helps tailor the ERP to real-world use and ensures it supports tasks effectively.
Involving team leads, supervisors, or key staff members who will use the ERP ensures their needs are considered.
Define Must-Haves & Goals
Before sending an ERP RFP, your team needs to clearly define what the new solution must do—and why. Aligning around pain points, goals, and non-negotiables helps vendors respond more accurately and makes it easier to evaluate proposals. Consider these factors:
- Pain points with the current system: What's frustrating your team now? Identify specific issues like slow processing times or lack of integration, so vendors know what problems they need to solve.
- Required improvements and success outcomes: What does success look like for your team? Define clear outcomes, such as reducing manual data entry by 50%, so vendors can propose relevant solutions.
- Functional, technical, and compliance needs: What specific features and compliance requirements must the ERP meet? Consider industry regulations or technical specifications that are non-negotiable.
- User roles, usage levels, workflows: Who will use the ERP, and how? Map out user roles and workflows to ensure the system supports your team's daily tasks.
- Deployment preferences: Do you prefer cloud-based or on-premise solutions? Decide on deployment options that align with your IT strategy and infrastructure.
Write the ERP RFP
Now it’s time to put everything together in a clear, structured RFP document. A well-organized, complete ERP RFP template makes it easier for vendors to respond accurately. It also helps your team evaluate those responses efficiently. When drafting your RFP, include these sections:
1. Executive Summary
Give a brief overview of your organization and the purpose of the RFP. Explain why you’re seeking an ERP solution and what you aim to achieve. This sets the context for ERP vendors, helping them understand your goals right from the start.
2. Scope of Work
Detail the specific tasks, deliverables, due dates, and the timeframe involved in the project. Clearly define what you expect from the vendor to avoid misunderstandings. This helps vendors gauge if they can meet your needs and submit relevant proposals.
3. Technical Requirements
List the technical specifications and functional requirements the ERP must meet, such as integration capabilities and system performance.
Be precise about the technologies you currently use and what the new system should support. That way, vendors can propose solutions that fit your tech environment.
4. Vendor Qualifications
Specify the experience and credentials you expect from potential vendors. Make sure to include any industry-specific expertise or past project examples that are relevant. This helps you assess if vendors have the necessary background to deliver on your requirements.
5. Security and Compliance Needs
Outline the security standards and compliance regulations your ERP must adhere to. Whether it’s GDPR or industry-specific rules, make these clear to vendors. This ensures your data remains protected and compliant with necessary legal standards.
6. Implementation and Training Expectations
Describe how you envision the implementation process and what training you expect for your team. Highlight any support or resources you’ll need from the vendor during this phase to help them better plan their approach and propose realistic timelines for before and after go-live.
7. Pricing and Licensing
Ask for detailed pricing models, including any licensing fees or additional costs (i.e. custom modules, extra users, etc.). Always be clear about your budget constraints or preferred pricing structures. This allows you to compare costs effectively and ensures there are no hidden fees.
8. Contract Terms
Outline any specific terms or conditions you want in the contract, like service level agreements or warranties. Make sure you’re clear about what’s negotiable in your ERP project and what’s not, so vendors understand your expectations and can prepare their terms accordingly.
9. Submission Instructions
Provide clear instructions on how and when vendors should submit their proposals. Include contact details and any specific formats you require. This ensures providers know exactly how to present their proposals, making your evaluation process smoother.
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Define Your Evaluation Criteria
Clearly defined evaluation criteria help keep the decision process objective, transparent, and aligned with your project requirements. Establish these criteria before reviewing proposals to avoid bias and ensure everyone is on the same page:
What Matters Most?
Focus on 3–5 weighted categories that align with your goals and priorities. This helps your team concentrate on what truly matters. Common RFP scoring categories for ERP include:
- Cost
- Functionality
- Vendor experience
- Implementation timeline
- Support and training
Choose the categories that best match your business needs and assign weights based on their importance.
Use a Scoring Matrix
A scoring matrix allows you to assign different weights to each category, reflecting your internal priorities. For example, if functionality is most important, give it a higher weight than cost.
Score each criterion on a 1–5 or 1–10 scale to quantify how well each proposal meets your needs.
Clarify Your Scoring Process
Define who will score proposals and how they’ll do it. Use a standardized rubric to ensure consistency and fairness.
Schedule a meeting to align reviewers before scoring begins, so everyone understands the criteria and process. This proactive step helps avoid discrepancies and ensures a smooth evaluation process.
Issue the ERP RFP
Issuing the ERP RFP isn’t just about sending it out—it’s about giving vendors the right access, timelines, and instructions so they can respond effectively. A smooth distribution process sets the tone for the quality of proposals you’ll get back. It also follows these steps:
Choose the Right Distribution Method
Consider using email, RFP software platforms, or procurement portals to distribute your RFP. A centralized system helps track responses and maintain organization.
You might also want to include a vendor contact list or using a role-based inbox can add clarity. That way, vendors know where to send questions and submissions, keeping the process efficient.
Set Clear Timeline Expectations
Share a detailed timeline in the RFP to keep vendors on track. A standard RFP timeline might include:
- RFP release date
- Vendor Q&A window
- Final submission deadline
- Evaluation and selection period
Having these dates upfront helps vendors plan their responses and ensures you receive timely submissions.
Define Submission Requirements
Ensure vendors know exactly how to submit their proposals. Specify accepted file formats like PDF, Word, or Excel templates, provide contact information, and state your preferred delivery method, such as an upload portal or a reply-to inbox.
Also, it’s important to clearly mention if specific templates or forms are required and whether late submissions will be accepted. This helps avoid confusion and ensures you receive proposals in the desired format.
Evaluate & Shortlist Vendor Responses
This is the point in the process where structure pays off—when your team turns vendor responses into a shortlist with confidence.
Consistency, objectivity, and collaboration across everyone involved in the evaluation are crucial. Keep these factors in mind as you evaluate and shortlist vendors:
- Organizing and formatting proposals for review: Keep everyone on the same page by organizing proposals in a consistent format. Use folders or spreadsheets to track key details. This makes it easier for your team to compare responses side by side.
- Using a scoring matrix: Apply the scoring matrix you developed to evaluate each proposal. This helps maintain objectivity and ensures that your team’s priorities are reflected in the scores.
- Scheduling demos and interviews: How do vendors perform in real-world scenarios? Schedule demos and interviews to see their solutions in action. This gives your team a chance to ask questions and get a feel for the vendor’s capabilities.
- Checking references: Don’t skip this step—reach out to other companies who’ve worked with the vendors. What do they say about their experiences? This can provide valuable insights and help you avoid potential pitfalls.
- Clarifying anything unclear in proposals: If you’re unsure about any part of a proposal, don’t hesitate to ask for clarification. Clear up ambiguities before moving forward to ensure you understand what each vendor is offering.
Select & Notify Vendors
Once your team has chosen a vendor, the final steps are just as important as the evaluation process.
Clear, professional communication with all vendors—both selected and unselected—is important, as is ensuring your team is aligned before moving into contract execution. Use these steps:
Notify Selected and Unselected Vendors
Timely, respectful communication with vendors shows professionalism and helps maintain good relationships.
Send a short thank-you or high-level feedback to unselected vendors where appropriate, as this leaves the door open for future opportunities. For the selected vendor, clear communication sets the stage for a positive working relationship.
Prepare for Final Negotiations
Get ready to discuss common negotiation points like pricing, SLAs, and contract terms. Know your team’s walk-away points ahead of time. Additionally, consider using a checklist or agenda to keep discussions focused and on track, ensuring you cover all necessary topics and reach a fair agreement.
Ensure Internal Alignment Before Signing
Before you finalize the contract, make sure all internal approvals are in place. This usually involves leadership or finance signoff, and a legal or procurement review.
From there, summarize the key decision drivers to help internal reviewers understand the rationale, allowing them to move quickly through the approval process.
What’s Next:
If you're in the process of researching ERP, connect with a SoftwareSelect advisor for free recommendations.
You fill out a form and have a quick chat where they get into the specifics of your needs. Then you'll get a shortlist of software to review. They'll even support you through the entire buying process, including price negotiations.