Shulou(Shulou.com)06/02 Report--

There are hundreds of enterprise resource planning (ERP) solution providers worldwide. It is not possible to contact all of these suppliers when carrying out a project to select ERP suppliers. Continuously narrowing the range of suppliers in this area until the finalization of the most suitable shortlist (often referred to as the "final candidate list") is a crucial step in the success of the project. The final candidate list of ERP suppliers can usually be determined with the help of the demand proposal (RFP) and related RFP processes.

Below, we will discuss with you the pros and cons of releasing RFP, and then help you compile the final candidate list for strategic ERP partners according to its advantages.

Inferior position

objectivity: some enterprises may use the old version of RFP, while the old RFP does not reflect the current business reality and background of the enterprise, or even the type of technology required by the new ERP (for example, it does not involve cloud computing). In fact, RFP itself does not guarantee that enterprises can objectively formulate a "final list of candidates for strategic ERP partners". Because organizations have many good reasons to use third-party expertise to help select suppliers, releasing RFP is just one of them.

focuses on function first: the source of operational efficiency is how the process supports business strategy; ERP software is not the source. Unfortunately, 72% of ERP selected projects focus on function first. First determining the available features and then determining how they fit into the way they work today (or in the future) is not an ideal ERP choice. The use of RFP in this approach may be an undue turning point in the enterprise selection process. It will cause enterprises to gradually deviate from their responsibility for the strategic role of ERP and move towards complex overall online projects that try to take advantage of "advanced software features" and are more expensive.

advantage

control bias: an effective way to control bias in any decision-making process is to list the requirements and then evaluate the applicability of the options based on those requirements. This is an important advantage of traditional RFP in the ERP selection process, and it is also a particularly effective tool to prevent internal bias.

shrinks rapidly: the most obvious and arguably greatest advantage of RFP is the ability to filter a large number of ERP software vendors, eventually narrowing the scope to a few. It is unrealistic and inefficient to conduct in-depth discussions with a large number of suppliers. The final list of candidates for strategic partners should be determined by a set of reasonable criteria that are fully consistent with the ERP strategy. If this is made clear in RFP, some suppliers will be happy to drop out of the race after determining that they are not suitable. ERP partnerships should be two-way.

is constantly updated: many RFP are software-centric, implementing software, supporting end users, and adapting to vendor KPI. This may seem like a reasonable step forward for a feature-centric selection process: software is online, end users are supported, and vendors have enough service time to patch and update ERP throughout the lifecycle. History shows that the only constant in manufacturing is change itself. The current business process of an enterprise is not immutable, so ERP should be changed accordingly.

From the above analysis of the advantages and disadvantages, we can make use of the advantages of RFP, combined with the strategic focus of the enterprise to determine the "strategic ERP partner candidate list". The specific selection process can be divided into four steps:

Clearly define unified ERP policies and indicators to promote accountability.

First, identify the key factors that determine the success of the business strategy. Then, define specific results and how to measure them as indicators. Evaluation and recruitment of experts

Determine if a third-party expert is needed. Strictly evaluate the objectivity of experts, industry expertise, and the ability to integrate ERP strategies into the final list of candidates for strategic ERP partners. Develop criteria for the final list of candidates for Strategic ERP Partners

Work with experts to decompose the strategy and expected results into the corresponding set standards. Keep long-term goals in mind

In order to work out the final candidate list of suppliers that best meet the current and future strategic objectives of the enterprise, focusing on the strategic requirement of continuous improvement can help enterprises to find suitable strategic ERP partners and cooperate continuously to help enterprises achieve their strategic mission.

In fact, whether or not to release RFP itself is not important, but the important thing is to make full use of the advantages of RFP, and combined with the strategic goals of the enterprise to achieve continuous updates. Because ERP chooses the project is a huge investment for the enterprise, there are risks and opportunities. The tools used to identify strategic ERP partners should not increase risk. Although the traditional RFP has many advantages, it is only a tool.

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