What is RFP (Request for Proposal)?
A formal document sent to ERP vendors requesting detailed proposals for how they would meet your business requirements.
Definition
A Request for Proposal (RFP) is a formal procurement document used to invite ERP vendors to submit detailed proposals for how their software and services meet your organization's specific requirements. An ERP RFP typically includes company background, functional requirements (by module), technical requirements, implementation timeline, budget range, vendor evaluation criteria, and submission instructions. RFPs help organizations make objective, apples-to-apples comparisons between ERP vendors.
How RFP Works in ERP
The ERP RFP process typically follows: (1) define requirements and create RFP document, (2) send to shortlisted vendors (3-5), (3) receive and score vendor responses, (4) conduct vendor demos, (5) check references, (6) negotiate contracts. A well-structured RFP saves months of evaluation time and ensures you compare vendors on the criteria that matter most to your business.
Frequently Asked Questions
How long should an ERP RFP process take?
A typical ERP RFP process takes 8-16 weeks from RFP creation to vendor selection. This includes 2-3 weeks for requirements gathering, 2-3 weeks for vendor responses, 3-4 weeks for demos and evaluation, and 2-3 weeks for final negotiations.