ERP fundamentals

How to choose ERP software: a selection process that works

For selection teams who want a fair, evidence-based decision. Use the checklist with every vendor, including us.

Quick answer

To choose ERP software, list your must-have processes, shortlist three to five vendors that fit your industry and size, and run scripted demos using your own scenarios and data. Score each vendor on fit, compliance, usability, integrations, implementation approach, and three-year total cost, then check references from similar businesses before you sign.

  • Requirements come from your processes, not a vendor feature list.
  • Scripted demos with your data beat polished generic demos.
  • Judge the implementation team as carefully as the software.
  • Compare total cost of ownership, not the licence line.

What are the steps to select an ERP?

  1. Form the team. A sponsor plus one owner each from finance, operations, sales, and IT.
  2. Document requirements. Your top processes, pain points, reports, tax rules, entities, and integrations. Mark each as must-have or nice-to-have.
  3. Long list to short list. Filter by industry fit, company size, deployment model, and local support. Keep three to five.
  4. Scripted demos. Send every vendor the same scenarios, such as an order to cash cycle with your products and tax, and score them live.
  5. Implementation review. Meet the people who would deliver your project and review their plan, method, and timeline.
  6. Reference checks. Speak to customers of similar size and industry, without the vendor on the call.
  7. Commercials and contract. Compare itemised three-year costs and negotiate scope, acceptance, and support terms.

What criteria should you use to evaluate ERP?

An ERP evaluation scorecard
CriterionWhat to check
Industry fitYour core process runs without heavy customisation
ComplianceTax invoices, returns, and statutory reports for your countries
UsabilityDaily users can complete tasks quickly; mobile access where needed
IntegrationsOpen APIs and existing connectors for your ecommerce, banks, and tools
Reporting and AISelf-service reports, and AI that works on live data with human review
ScalabilityNew entities, currencies, and users by configuration
SecurityRole-based access, audit trail, encryption, backups, and data residency
ImplementationMethod, team experience, and a dated plan
Total costThree-year itemised cost including services and support

What should you ask to see in an ERP demo?

  • Create a customer, quote, order, delivery, invoice, and payment with your own tax rules
  • Receive stock against a purchase order and match the supplier invoice
  • Run your most important monthly report
  • Close a period and show the audit trail for a changed transaction
  • Show a user with limited permissions trying to approve something they should not
  • Show how the AI assistant drafts, matches, or flags work, and how a person approves it

What are the red flags when choosing an ERP vendor?

  • The vendor will not demo your scenarios, only a standard script
  • Quotes are a single number without itemised lines
  • Many of your must-haves need custom development
  • No references in your industry or region
  • The implementation team is unnamed until after you sign
  • Contract terms make it hard to export your data if you leave

Should you choose a generic or an industry-specific ERP?

Generic ERP can be configured for most businesses, but effort and risk rise when your core process is unusual, such as batch traceability, project billing, or school fee structures. Industry-specific ERP ships those processes ready, so implementation is shorter and upgrades are simpler. Choose generic only if your processes are standard and you have strong in-house configuration skills.

Evaluating Hudace ERP

Hudace ERP is an AI-native, industry-specific ERP with finance, sourcing and procurement, supply chain, manufacturing, sales, service, and asset management on one platform. Xenon AI works across the modules, from drafting and reconciling to surfacing exceptions for a person to review.

Send us your scenarios and we will run them in a scripted demo with your data. Read about our industries and customer stories, then book a demo.

Frequently asked questions

What is the best ERP software?

The best ERP is the one that runs your core processes with the least customisation, meets your compliance needs, is easy for your staff, and comes with a capable implementation team. That differs by business.

How many ERP vendors should we evaluate?

Shortlist three to five after an initial screen. More than that makes scripted demos hard to run well.

Do we need an ERP consultant to select a system?

Not always. A clear requirements list and scripted demos go a long way. An independent adviser helps for complex, multi-country selections.

Should we issue an RFP for ERP?

A short RFP with your requirements and demo scripts helps compare vendors fairly. Long generic RFPs tend to get generic answers.

How long does ERP selection take?

It depends on your team availability and the number of vendors. Keep momentum by setting dates for each step.

What questions should we ask ERP references?

How long implementation really took, what went wrong, how support responds, what they would do differently, and whether costs matched the quote.