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The ERP selection checklist, phase by phase
- 1
Write the problem statement
One page that the owner or CFO signs: what is broken today, what must be true after go-live, and what is out of scope. You test every later decision against it.
- 2
Document requirements by process
Describe order to cash, procure to pay, inventory, month end and reporting as they run now, then mark the must-haves separately from the nice-to-haves. Keep it to what you would genuinely refuse to live without.
- 3
Build a shortlist of three
Filter candidates on fit for your size, industry and deployment preference. Three serious options give real comparison without exhausting the team.
- 4
Run scripted demonstrations
Send each vendor or partner the same scenarios using your products, customers and a messy real transaction. Score what you see, not what a salesperson says might be possible.
- 5
Check the partner as hard as the product
Ask who will actually do the work, how they run testing and data migration, and how support works after go-live. Speak to references with a situation similar to yours.
- 6
Compare total cost and sign a written scope
Line up every cost component across the options and choose. Before signing, make sure both sides have written down the scope, deliverables and responsibilities.
Eight requirement areas to cover
Finance and close
Chart of accounts design, dimensions or segments, multi-currency, intercompany and consolidation, and how the month-end close will run.
Order to cash
Quotes, pricing and discounts, credit limits, invoicing, collections and how sales channels such as ecommerce feed orders in.
Procure to pay
Requisitions, approvals, purchase orders, three-way matching, vendor payments and landed costs if you import goods.
Inventory and warehouse
Locations, bins, lot or serial tracking, costing method, cycle counting and how pickers and receivers will use the system.
Production or projects
Bills of materials and routings for manufacturers, or budgets, time capture and billing rules for project-based firms.
Reporting
The management pack, lender and board reports, and who needs self-service analysis versus fixed statements.
Integrations
Every system that must exchange data: CRM, ecommerce, payroll, banking, tax calculation, shipping and EDI with trading partners.
Controls and access
Segregation of duties, approval chains, audit trail and how you will design and review user permissions.
Why the demo is the riskiest part of selection
Vendors rehearse a standard demo to show the product at its best. It is useful for a first impression and nearly useless for a decision. The fix is simple, and it belongs on any ERP selection checklist for growing companies. Write the scenarios yourself and send them to every candidate at the same time.
Good scenarios are specific. Receive a partial shipment against a purchase order with a price variance. Invoice a customer who has a special price and is over their credit limit. Close a month and produce the report your lender asks for. Include at least one ugly case from real life, because that is where systems and partners separate.
Score each scenario immediately after the session while it is fresh, using the same people on every demo. If a candidate says a scenario needs customization, note it as a gap and ask what the extension would involve, rather than giving credit for a promise.
A scoring grid you can copy
Red flags on an ERP selection checklist for growing companies
- ✓A partner who quotes a firm figure before understanding your processes or data.
- ✓Every hard scenario answered with we can build that, without showing a standard option.
- ✓The consultants in the sales process are not the people who will deliver the work.
- ✓Data migration and testing appear as a single vague line in the proposal.
- ✓References are all much smaller or simpler than your business, or the partner offers none.
- ✓Pressure to sign quickly because of a discount deadline rather than your own timetable.
The cost components to line up side by side
Comparing options on licence price alone misses most of the money. Put these components in columns for each candidate: software subscriptions for the user types you actually need, implementation services, data migration, integrations and any extensions, training, ongoing support after go-live, and the internal time your own staff will spend on design, testing and cutover.
Internal time is the one most often left out and the one most likely to decide whether the project succeeds. If your controller must spend a significant share of each week on the project for several months, plan who covers their normal work. We explain the drivers in our implementation cost guide, without figures, because the numbers depend on scope. So put internal time on every ERP selection checklist for growing companies.
ERP selection questions from growing companies
How many ERP vendors should we evaluate?
Three serious candidates is usually right. Fewer gives no real comparison, and more exhausts the team before the scripted demos. Use a quick filter on size, industry and deployment to get from a long list to three. Put your effort into testing those three properly.
Should we hire a consultant to run the selection?
It helps if nobody internally has been through an ERP selection before. An independent adviser can write scenarios, run the scoring and stop the loudest opinion winning. If you use one, make sure no vendor on the shortlist pays them. A disciplined internal team with this checklist can also do it well.
Is cloud ERP always the right choice now?
For most growing companies it is the default, but not always. Cloud removes server upkeep and keeps you on current versions. On-premises can still make sense with specific regulatory, connectivity or legacy integration constraints. Our cloud versus on-premises comparison walks through the trade-offs for Business Central.
What should the contract with the implementation partner include?
It should include a written scope, deliverables, the duties of both sides and how you will handle changes. Look for clear statements on data migration, testing, training and support after go-live. Assumptions matter as much as deliverables, since disputes start there. If a partner promised something in a demo, get it into the scope document.
How do we keep the selection from dragging on for a year?
Set a decision date at the start and work backwards. Assign one owner with authority to keep the timetable, limit the shortlist to three, and schedule the scripted demos close together. Most delay comes from reopening requirements after demos, so freeze the must-haves before the first session.
Talk to us about your project.
Tell us what you run today and what has to change. A senior consultant replies with a written next step.