Start by identifying exactly what you need from an ERP system. This includes looking at your functional needs, like accounting, inventory management, or HR, as well as the technical requirements, such as whether you need a cloud-based system or specific integrations. You’ll also need to consider your budget, timelines, and how the system can scale as your business grows.

From there, you’d put together a detailed RFP document. This should cover:

• An overview of your business and operations.

• Clear objectives for what you want the ERP to achieve.

• A breakdown of the key features and functions you’re after.

• Technical requirements like software architecture and system compatibility.

• What qualifications or experience you’d like the vendor to have.

• How you’re going to evaluate their proposals (e.g., cost, support, implementation).

• Instructions for the vendors on how to respond, including deadlines and what documents to provide.

Once your RFP is ready, you’ll send it out to a shortlist of ERP vendors. These might be companies you’ve found through research or industry contacts. You’ll give them a set deadline to submit their proposals.

When the proposals come in, you’ll review each one carefully. Vendors will detail how their ERP system can meet your needs, along with information on costs, the implementation process, ongoing support, and more. You’ll compare these against the criteria you set in the RFP.

• A team from your business would typically be involved in evaluating the proposals. You’ll want to look at:

• How well each ERP meets your business’s functional and technical needs.

• The overall cost, including setup, licensing, and ongoing maintenance.

• The vendor’s experience and reputation.

• Their implementation plan, timelines, and any potential risks.

• What kind of support, training, and future updates they offer.

Once you’ve done your evaluations, you’ll narrow down the list to a few top vendors. You might invite these vendors to give a demo of their ERP system, meet with them for interviews, or ask for case studies from similar businesses.

At this stage, you’ll ask the shortlisted vendors to provide more detailed demonstrations of their ERP systems. This will give you a clearer idea of how the system would work for your business. You can also start negotiating pricing, implementation terms, and any customisations you might need.

Once you’ve weighed everything up – functionality, cost, vendor support, and reputation – you’ll choose the ERP system that’s the best fit for your business. You’ll then finalise negotiations around contracts, service agreements, and the implementation plan.

inally, you’ll award the contract to your chosen vendor, and from there, the implementation process kicks off.