The Risks and Benefits of Using an RFP to Select an ERP
Choosing a new Enterprise Resource Planning (ERP) system is one of the most important technology decisions a business can make. For mid-sized organisations across Australia and New Zealand, the investment can run into millions of dollars and affect operations for years. Many businesses use a Request for Proposal (RFP) to evaluate ERP vendors—but while this approach has clear benefits, it also carries risks if not managed properly.
The Benefits of Using an RFP
Structured process. An RFP provides a framework for gathering vendor responses in a consistent format, making it easier to compare like-for-like.
Clear requirements. By documenting needs upfront, businesses ensure vendors understand what the ERP must deliver—whether it’s compliance with ATO and IRD reporting or integration with Xero and MYOB.
Transparency. An open RFP process demonstrates fairness, which can be especially important for organisations with multiple stakeholders or board oversight.
Market insight. Responses often highlight capabilities or approaches the business hadn’t considered, broadening understanding of available solutions.
Stronger negotiation position. With multiple competitive bids, organisations are better placed to negotiate pricing and contract terms.
The Risks of Relying on an RFP
Overemphasis on paperwork. Vendors that excel at writing polished proposals don’t always deliver the best implementation outcomes.
Rigid requirements. Locking in specifications too early can stifle innovation or exclude solutions that may be a better long-term fit.
Time-consuming. Running an RFP can take months, delaying the start of system implementation.
Evaluation fatigue. Lengthy responses with technical jargon can overwhelm internal teams, leading to poor decision-making.
False sense of security. A detailed RFP doesn’t guarantee success—implementation quality, cultural fit, and change management matter just as much.
Best Practice in the ANZ Context
For ANZ businesses, the key is balance. An RFP can be highly effective if combined with other evaluation methods, such as vendor demonstrations, reference checks with local customers, and pilot projects. It’s also vital to involve cross-functional stakeholders—finance, operations, and IT—so the final decision reflects the whole business.
At Climb Business Consulting, we help organisations structure ERP RFPs that focus on outcomes, not just features. Our approach reduces risk by combining the rigour of an RFP with practical evaluation steps, ensuring the chosen ERP is aligned with both current needs and future growth.
Final Word
An RFP can be a powerful tool in ERP selection, offering structure, transparency, and leverage. But it’s not a silver bullet. Without careful management, the process can become slow, rigid, and disconnected from real business needs.
The most successful ANZ businesses use RFPs as one part of a broader ERP selection strategy—one that balances formal evaluation with practical insight, ensuring the system chosen truly supports efficiency, compliance, and growth.
