The Complete Guide To Drafting An ERP RFP

The time comes when an organization needs to issue a request for proposal for enterprise resource planning. When this day arrives, the organization must understand the process used to create this document. While every organization uses its own method, four steps appear in most methods.

Discovery

Before drafting this request, the organization must plan the process to ensure it proceeds effectively and efficiently. This process begins with a meeting among stakeholders. The meeting allows everyone to agree on project boundaries, a timeline, and the estimated budget. The stakeholders need to identify a person to head this project who has organizational and project-specific knowledge related to drafting RFPs and evaluating submitted proposals. At this stage, the team determines how the choice of ERP will affect ongoing projects, internal team relationships, and the budget of the organization. Now is also the time to identify which categories are top priorities and evaluate the list of RFP templates to determine which the organization will use.

Drafting and Issuing the Document

Drafting the document serves as the most important part of the process. The RFP must describe any issues the organization is facing that need addressed. A thorough document allows vendors to understand these problems and offer solutions. Clearly describe the project goals and any criteria the organization will use to evaluate proposals from vendors. Add a wish list and a timeline for the project, including important dates for each stage of the project. This information allows each vendor to determine whether it can be of help.

Develop scoring criteria for use during the evaluation process and create a three-column matrix. List the requirements for the RFP in one column, leave a blank column for the score, and add a third column that determines the weight of that requirement. Other methods may also be used for scoring proposals, so decide if the three-column matrix is appropriate for the project. Include timelines and submission instructions and issue the RFP. Know where to share this RFP to connect with the appropriate vendors.

Scoring Proposals

As vendor responses arrive, score each proposal using the three-column matrix or other scoring method developed in the previous step. Eliminate any vendors that cannot provide the necessities outlined in the RFP. Once this has been done, review the remaining proposals. Identify strong points for each vendor and establish a shortlist for vendors with the highest marks. Respond to questions from vendors during the submission window. After the window closes, there is no need to communicate with the vendors until the organization reaches a decision.

Choose an ERP Provider

Compare the vendors remaining on the response list when the submission period closes. Read reviews and reach out to references to gather more information about each vendor. Ask questions about the ERP and ensure the answers provided by the references lines up with what the vendor says about its program. If the organization needs additional information before deciding, reach out to the vendors and schedule a meeting or conference call. When the decision process comes down to two or three leading bidders, begin negotiations. Narrow the choice to one vendor, lock in a price, and sign the contract.

Reach out to those vendors not selected and provide information about why you chose another product or service. Vendors appreciate having this information to improve their offerings, and common courtesy says they should receive an answer even if it is a negative response. Using these steps, an organization finds selecting an ERP doesn’t need to be challenging. The process ensures an organization selects the right vendor every time.