How to Write an ERP RFP: Free Template & Evaluation Criteria

An ERP Request for Proposal (RFP) is the document that determines whether you evaluate the right vendors, ask the right questions, and ultimately select a system that fits your business — or waste six months comparing platforms on the wrong criteria and end up with a system that requires expensive customization to do what you actually need.

Most ERP RFPs fail for one of three reasons: they are too generic (copied from a template without customization to the actual business), too detailed (200-page documents that vendors submit boilerplate responses to), or they focus on features instead of outcomes (asking "do you support multi-currency?" instead of "how does your system handle our specific multi-currency workflow where we purchase in CNY, sell in USD and EUR, and report in GBP?").

This guide provides a practical, tested RFP framework that elicits meaningful responses from vendors, enables objective comparison, and gives you the information needed to make a confident decision. Every section includes the specific language and criteria you need, along with the scoring methodology to evaluate responses.

Key Takeaways

• An effective ERP RFP is 15-25 pages (not 200) and focuses on business outcomes, not feature checklists
• The RFP should describe your processes and challenges, then ask vendors how they would address them — not prescribe solutions
• Include 5-7 critical business scenarios that vendors must demonstrate in their demo (not a generic product walkthrough)
• Weighted scoring with predetermined criteria prevents emotional decision-making and vendor favoritism
• Reference checks should ask specific questions about implementation experience, not "are you satisfied?"
• The entire evaluation process (RFP → shortlist → demo → reference checks → decision) should take 8-12 weeks

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The ERP RFP Process Timeline

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RFP Structure: Section by Section

Section 1: Company Overview

Provide vendors with enough context to tailor their response to your business. Do not just state facts — explain what matters and why.

Include:

Section 2: Business Requirements

This is the core of the RFP. Organize requirements by business process, not by software module. Vendors respond better to "how does your system handle our order-to-cash process?" than "list your accounts receivable features."

Requirement categories:

Requirement Priority Levels

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Section 3: Technical Requirements

Section 4: Vendor Questions

Ask questions that reveal vendor capability and fit, not just product features.

Critical vendor questions:

1. Describe your implementation methodology. What are the phases, milestones, and typical timeline for a company our size?
2. How many implementations have you completed in our industry? Provide 3 reference customers of similar size and complexity.
3. What is your approach to data migration? How do you handle data cleansing and validation?
4. How are customizations handled during upgrades? What percentage of your customers require custom development?
5. Describe your training approach. What materials, formats, and ongoing resources are available?
6. What is your support model? Response time SLAs? Escalation process? Dedicated account manager?
7. Provide a detailed pricing breakdown: licenses, implementation, customization, training, annual maintenance, hosting.
8. What is your product roadmap for the next 2 years? How do customers influence the roadmap?
9. What is the typical total cost of ownership for a company our size over 5 years?
10. Describe a failed implementation and what you learned from it. (This question reveals honesty and self-awareness.)

Section 5: Demo Requirements

Do not let vendors run their standard demo. Prescribe 5-7 critical business scenarios that they must demonstrate using your actual (or representative) data.

Scripted demo scenario template:

Scenario 3: Multi-Warehouse Inventory Transfer

Background:
  We operate 3 warehouses (East, Central, West) and frequently transfer
  inventory between them to balance stock levels.

Demo Requirements:
  1. Show how a warehouse manager identifies that East warehouse has
     excess stock of SKU-4521 while West warehouse is below safety level
  2. Create an inter-warehouse transfer request with approval workflow
  3. Process the transfer: pick from East, ship, receive at West
  4. Show real-time inventory update across all warehouses
  5. Demonstrate the accounting entries generated (if any)
  6. Show the transfer history and audit trail

Evaluation Criteria:
  - Ease of identifying stock imbalances across locations
  - Number of steps/clicks to complete the transfer
  - Real-time inventory visibility during the transfer process
  - Audit trail completeness

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Vendor Scoring Methodology

Weighted Scoring Matrix

Assign weights to each evaluation category based on what matters most to your business. The weights should total 100%.

Functional Fit Scoring

For each requirement, score the vendor's response:

Weighted requirement score = Score × Priority Weight (M=3, I=2, D=1)

Evaluation Scorecard Template

In this example, Vendor B scores highest (3.50), followed by Vendor C (3.41) and Vendor A (3.32).

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Reference Check Guide

Reference checks are the most underutilized part of ERP selection. Do not just ask "are you happy with the system?" — ask specific questions that reveal implementation reality.

Reference Check Questions

Implementation experience:

1. How long did the implementation take compared to the original estimate?
2. What was the final cost compared to the original budget? What caused any overruns?
3. What was the biggest challenge during implementation? How did the vendor handle it?
4. How many of your requirements required custom development? How complex was it?
5. How was the data migration experience? Did you lose any data or discover data quality issues?

Post-implementation: 6. How long did it take for users to become proficient? What training was most effective? 7. What do users complain about most? What do they praise most? 8. How responsive is vendor support when you have issues? What is the typical resolution time? 9. How are upgrades handled? Have any customizations broken during upgrades? 10. If you were starting over, would you choose the same vendor? What would you do differently?

Critical question for similar-sized companies: 11. What was your total cost of ownership for the first 3 years, including everything — licenses, implementation, customization, training, and internal resources?

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Common RFP Mistakes to Avoid

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ERP RFP Template Outline

Use this outline to structure your RFP document:

1. INTRODUCTION
   1.1 Purpose of this RFP
   1.2 Company overview
   1.3 Project objectives and scope
   1.4 Timeline and key dates
   1.5 Contact information and submission instructions

2. CURRENT STATE
   2.1 Existing systems and technology landscape
   2.2 Current business processes (high-level)
   2.3 Key challenges and pain points
   2.4 Data volumes and transaction volumes

3. BUSINESS REQUIREMENTS
   3.1 Financial management (M/I/D per requirement)
   3.2 Sales and CRM
   3.3 Procurement
   3.4 Inventory and warehouse
   3.5 Manufacturing (if applicable)
   3.6 HR and payroll (if applicable)
   3.7 Reporting and analytics
   3.8 Integration requirements
   3.9 Compliance requirements

4. TECHNICAL REQUIREMENTS
   4.1 Deployment and architecture
   4.2 Security and compliance
   4.3 Integration and API
   4.4 Mobile and accessibility
   4.5 Disaster recovery and SLA

5. VENDOR QUESTIONS
   5.1 Company background and financial health
   5.2 Implementation methodology and team
   5.3 Training and change management
   5.4 Support and maintenance model
   5.5 Product roadmap
   5.6 Pricing (detailed breakdown required)

6. DEMO REQUIREMENTS
   6.1 Scenario 1: [Order-to-Cash]
   6.2 Scenario 2: [Procure-to-Pay]
   6.3 Scenario 3: [Inventory Management]
   6.4 Scenario 4: [Financial Close]
   6.5 Scenario 5: [Reporting and Analytics]
   6.6 Scenario 6: [Industry-Specific Process]
   6.7 Scenario 7: [Integration Demo]

7. EVALUATION CRITERIA
   7.1 Scoring methodology
   7.2 Category weights
   7.3 Selection timeline

8. TERMS AND CONDITIONS
   8.1 Confidentiality requirements
   8.2 Proposal validity period
   8.3 Right to reject all proposals

APPENDIX
   A. Detailed requirement matrix
   B. Data volume specifications
   C. Integration architecture diagram
   D. Sample data for demo

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Working With an Implementation Partner

ECOSIRE provides ERP consulting services that include vendor-neutral requirements analysis, RFP development, vendor evaluation support, and implementation management. For businesses that have already selected Odoo, our implementation services cover the full deployment lifecycle from requirements through go-live and beyond.

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Frequently Asked Questions

How many vendors should I send my ERP RFP to?

Send your RFP to 5-8 vendors maximum. Fewer than 5 limits your options and reduces competitive pressure. More than 8 creates an evaluation burden that leads to shallow analysis and decision fatigue. Before sending the RFP, do initial research to create a long list of 10-15 candidates, then pre-qualify them based on industry fit, company size fit, budget fit, and deployment model to narrow to 5-8.

How long should vendors have to respond to the RFP?

Give vendors 2-3 weeks to respond. Less than 2 weeks results in rushed, generic responses. More than 3 weeks allows vendors to deprioritize your RFP. Provide a Q&A period during the first week where vendors can submit written questions — distribute all questions and answers to all vendors for fairness. Set a firm submission deadline with no extensions.

Should I include pricing requirements in the RFP?

Yes. Request a detailed pricing breakdown that separates: software licensing (per user, per module, or flat), implementation services (by phase and resource level), customization/development (estimated hours and hourly rate), training (included vs. additional cost), annual maintenance and support, and hosting/infrastructure. Providing your budget range helps vendors propose appropriately scoped solutions. Without a budget indicator, you will receive proposals ranging from $50K to $500K for the same requirements, making comparison impossible.

What is the difference between an RFP and an RFI?

An RFI (Request for Information) is a preliminary document used to gather general information about vendor capabilities before you know exactly what you need. It is shorter, less formal, and does not request pricing. An RFP (Request for Proposal) is a detailed document that specifies your requirements and asks vendors to propose a specific solution with pricing. Use an RFI first if you are early in your ERP journey and need to understand what is available. Use an RFP when you know your requirements and are ready to evaluate specific solutions.

How do I prevent vendors from just checking "yes" on every requirement?

Three techniques: (1) For critical requirements, add "Describe how your system handles this" below the yes/no checkbox — vendors must explain, not just check. (2) Require scenario-based demos where vendors must show, not tell. It is easy to check "yes" on a feature list; it is impossible to demo functionality that does not exist. (3) Include requirements that are intentionally difficult or unusual for your industry — vendors who check "yes" on everything, including requirements they cannot realistically meet, reveal themselves as untrustworthy.

How important are reference checks in ERP selection?

Reference checks are critically important and consistently undervalued. Vendor demos show the product at its best — references show the reality of implementation. Insist on speaking with references of similar size and industry. Ask about budget overruns, timeline delays, customization challenges, and support responsiveness. Ask the question no one asks: "What do your users complain about most?" The answer tells you more about day-to-day reality than any demo can.

Can I use the same RFP template for cloud and on-premise ERP?

The business requirements sections are the same regardless of deployment model. However, the technical requirements section should be adapted. For cloud ERP, emphasize: data residency, uptime SLAs, security certifications, backup and recovery, and exit strategy (data portability). For on-premise, emphasize: hardware requirements, database support, OS compatibility, backup strategy, and IT skill requirements. If you are open to both, ask vendors to propose their recommended deployment model with justification.

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Start Your ERP Selection

A well-structured RFP is the foundation of a successful ERP selection. Take the time to document your requirements thoroughly, design meaningful evaluation criteria, and script your demos around your actual business scenarios. The investment in a rigorous selection process saves months of implementation pain and hundreds of thousands of dollars in rework.

ECOSIRE's ERP consulting team helps businesses through every stage of the selection process — from requirements gathering and RFP development to vendor evaluation and implementation. Contact us for a complimentary consultation on your ERP selection project.