Key Takeaways
- Many ERP RFP process mistakes stem from being too detailed, too vague, or too unrealistic.
- Best practice is to send RFPs to 3–5 qualified vendors.
- Overly long RFPs reduce response rates. Concise, business-focused documents perform better.
- Small businesses may benefit more from structured vendor discussions than from formal RFP processes.
A Request for Proposal (RFP) can be a valuable tool when selecting ERP software. When done correctly, it clarifies requirements, aligns stakeholders, and helps vendors provide meaningful responses.
But when handled poorly, RFPs create delays, confusion, unrealistic expectations, and vendor fatigue. These are some of the most common issues with RFP processes that companies encounter when searching for ERP systems.
Let’s break down what not to do and how to avoid costly mistakes.
1. Too Much Detail
An RFP should provide vendors with a clear understanding of your business requirements and workflows. However, one of the most common problems in the RFP process is overengineering the document.
For small and mid-sized businesses, modern best practice recommends:
- 2–3 pages maximum for core requirements
- A short executive summary outlining goals
- High-level process descriptions instead of exhaustive functionality checklists
When RFPs become 10–15+ pages long for mid-market businesses, response rates often decline. Many ERP vendors prioritize opportunities with focused, strategic requirements over lengthy, overly prescriptive documents, which may lead you to miss out on a solution that would be a good fit.
Why Overly Detailed ERP RFPs Reduce Vendor Engagement
Companies try to anticipate every possible feature. The result? Vendors spend more time deciphering the document than understanding your business. Many RFP questions can be interpreted in multiple ways - especially without knowing the nuanced details of the requirement or process. Without clarity and context upfront, vendors may make assumptions without truly understanding the business need.
How to Structure a Concise, High-Impact ERP RFP
- Focus on business outcomes - what are you hoping to achieve? And let the ERP vendor suggest appropriate ways to meet these outcomes.
- Describe workflows and how your team currently moves through their day, instead of focusing on screen layouts
- Highlight must-have vs. nice-to-have requirements
2. Being Too Specific About Software Functionality
Another major RFP process problem is confusing business requirements with software design.
For example:
Instead of stating: “We need visibility into customer sales history and credit limits.”
Some RFPs say: “The system must include a customer review screen with past sales history, contact information, and credit limits displayed in a specific layout.”
ERP systems solve problems differently. By dictating exactly how functionality must appear, you limit innovation and potentially eliminate strong-fit vendors unnecessarily.
Focus on Business Outcomes, Not Software Screen Designs
Write from a business requirement perspective, not a software blueprint perspective.
Your goal is to confirm that vendors can deliver the required information — how they do it is part of the evaluation process. Speaking directly with a vendor to review requirements and desired business outcomes can frequently lead to creative solutions that save time and money. Experienced vendors will be able to offer guidance and advice based on best practises from existing customers and industries - and may even have a solution or feature you haven’t considered.
3. Not Providing Enough Clarity on Scope
While excessive detail is common, vagueness can be equally problematic.
For example, a company may describe itself as a distributor but fail to mention light manufacturing, kitting, or assembly requirements.
This omission significantly impacts cost and complexity.
4. Unrealistic Budget Expectations
One of the most damaging RFP software problems is misalignment between expectations and budget. It is no longer realistic to expect a fully integrated system (inventory, accounting, CRM, eCommerce, warehouse management) for $10,000.
ERP pricing reflects:
- Implementation consulting time
- Data migration
- Custom configuration
- User training
- Ongoing support
If budget expectations do not match system requirements, vendors may:
- Decline to respond
- Overpromise to win the deal
- Underestimate project complexity
How to Align ERP Budget Expectations with Market Reality
- Conduct preliminary research before issuing your RFP.
- Provide a realistic budget range.
- Align scope and expectations early.
5. Soliciting Too Many Vendors
Another common RFP problem is casting too wide a net. In the past, companies might send RFPs to 20–30 vendors and receive 10–15 responses. Today, that approach wastes time and encourages price shopping over strategic fit.
How Many ERP Vendors Should You Include in Your RFP Process?
- Send RFPs to 3–5 carefully researched vendors
- Shortlist to 2–3 finalists
- Prioritize fit, industry experience, and implementation approach
More vendors do not equal better decisions. They increase evaluation complexity and often slow internal consensus.
6. Treating the RFP as the Entire Evaluation Process
For many small and mid-sized distributors, a formal RFP may not even be necessary.
If your organization:
- Has under 50 users
- Operates with relatively straightforward processes
- Needs industry-specific ERP functionality
A structured discovery call and guided demo process may produce better outcomes than a rigid RFP.
ERP selection is about:
- Vendor expertise
- Implementation methodology
- Industry fit
- Developing a long-term partnership
An overly formal RFP can sometimes restrict the collaborative discussion needed to determine true alignment.
How to Avoid Common RFP Process Problems When Selecting ERP
RFPs are not inherently bad, but poorly constructed ones create significant RFP software problems that delay projects and increase frustration. The goal of an ERP selection process should be clarity, not complexity.
To summarize:
- Keep it concise: Focus on business goals and operational challenges.
- Clarify your scope: Distribution only? Manufacturing? eCommerce? Be transparent.
- Align budget with expectations: Research realistic ERP cost ranges before issuing your RFP.
- Limit vendor outreach: Quality over quantity — 3 to 5 vendors is ideal.
- Focus on fit, not just price: ERP is a long-term operational investment.
When done right, your ERP evaluation becomes strategic and focused.
