Selecting an enterprise resource planning (ERP) system is a major decision, and the process begins with understanding what your organisation truly needs. The following ERP requirements checklist is designed to help you pinpoint the system that will deliver the greatest value.

A well-chosen ERP platform can transform disorder into clarity, replacing disconnected processes with a single integrated environment. The result is improved efficiency, smoother operations and a business that can respond faster to change. But because ERP touches almost every area of the organisation, documenting requirements thoroughly is essential. Cutting corners at this stage can lead to a costly misstep that is difficult to reverse.

What is ERP?

ERP software unifies the essential activities of a business within one system. Using a shared database, it connects operations such as accounting, inventory management, order processing and HR, giving teams a consistent and accurate view of information across the organisation. Many platforms also include dashboards and analytics tools that present up-to-date insights in an accessible, real-time format. This visibility helps automate routine work and supports better, faster decision-making.

Most ERP systems are delivered in one of two ways: Cloud-based or on-premises.

  • Cloud ERP: This eliminates the need for on-site infrastructure because users access the system through a browser. Cloud solutions usually run on a subscription (SaaS) model, lowering upfront costs and simplifying updates, as enhancements are rolled out automatically by the provider. Implementations also tend to be quicker and less resource-intensive than traditional deployments.
  • On-premises ERP: These systems are installed locally and require organisations to maintain and upgrade the system themselves. This model typically involves a substantial initial licensing fee, ongoing maintenance charges and a reliance on internal IT resources. Businesses may prefer on-premises software if they have deep technical capabilities and want to retain full control over data and infrastructure.

Some organisations have historically opted for homegrown systems. However, this approach is increasingly uncommon as modern ERP vendors now offer flexible, affordable solutions that support a wide range of industries and business models.

The Importance of ERP Requirements

If a system doesn’t align with your organisation, it can have major consequences, both in direct costs and in lost opportunities. By defining and ranking your ERP requirements from the outset, you dramatically reduce the likelihood of choosing the wrong system. Clear requirements also provide a blueprint for evaluating vendors and ensure the chosen solution supports your immediate objectives while being adaptable enough to grow with your business.

Best Practices for ERP Requirements Gathering

To navigate the selection process effectively, focus on the three P’s: People, processes and priorities.

People

Gathering requirements starts with assembling the right contributors. This group should represent every department that will rely on the system – typically sales, marketing, finance, manufacturing, supply chain, IT and customer service.

While senior stakeholders are essential, including end users adds significant value. They understand day-to-day workflows and can highlight potential pitfalls early. Involving them also helps build enthusiasm and acceptance ahead of go-live. Ideally, team members should be collaborative, open-minded and able to balance departmental interests with wider organisational objectives. Some companies also bring in external expertise, such as ERP consultants, compliance advisers or investors.

Processes

The aim of implementing the system is to simplify and streamline business processes. To make sure this happens, map your current workflows and develop use cases before committing to a system. This prevents old inefficiencies from being replicated in the new system and helps determine whether a vendor’s capabilities align with your operational needs. An ERP platform may also incorporate industry-leading practices that offer significant improvements over internal methods.

Priorities

Once you understand your current environment, define what the future should look like. Build ERP goals around your broader business strategy and ensure they meet the SMART criteria: specific, measurable, attainable, realistic and timely. For example, one SMART objective might be reducing warehouse picking and packing times.

But it is just as important to rank the modules and features you need immediately. Most organisations begin with financials and accounting – the software’s backbone – while other modules, such as inventory management or HR, may be implemented alongside financials or added progressively depending on resources and need. By prioritising essential features, you avoid being distracted by non-critical functionality and protect the project from “scope creep”.

ERP Functional Requirements Checklist

Below is a summary of common functional areas and capabilities that ERP software must support:

  • Accounting and financials: Covers core accounting and compliance processes, including financial reporting, general ledger, accounts receivable (AR), accounts payable (AP), billing, revenue recognition and budgeting.
  • Manufacturing and distribution: Supports end-to-end manufacturing activities with features like production control, distribution planning, quality assurance and warehouse management, providing visibility across all operational steps.
  • Materials management: Helps manage procurement and material availability to support production schedules. Typical capabilities include automated purchasing, inventory oversight and logistics coordination within materials resource planning (MRP).
  • Inventory and order management: Ensures accurate stock levels and smooth order fulfilment. Functionality often spans inventory tracking, warehousing, pricing management, ecommerce, order entry and returns handling.
  • Supply chain management (SCM): Automates the flow of goods from supplier to customer, covering demand forecasting, purchase orders, work and transfer orders, shipping and warranty management.
  • Customer relationship management (CRM): Records and manages customer interactions, order history, marketing campaigns, lead activity and sales quoting.
  • Business intelligence and reporting: Provides dashboards and analytics to assess performance across the organisation, supporting data-driven decision-making.

A structured checklist helps evaluate whether the software will support your core operations. Get the checklist here.

Things to Consider When Choosing an ERP System

Beyond functional needs, organisations should evaluate broader criteria such as:

  • Industry expertise: Does the vendor understand your sector? Can they provide references from similar businesses?
  • Integration: How easily does the ERP connect with other tools or hardware, including scanners or bespoke applications? Does it provide open APIs?
  • Deployment: Which model – cloud or on-premises – fits your IT capacity, budget and target timelines? Will external specialists be required?
  • Support: What level of vendor or third-party support is available? How do costs vary? Is there a robust self-service knowledge base?
  • Training: What training is provided to encourage user adoption and accelerate ROI? Are some systems naturally easier for users to master?
  • Platform and customisation: How flexible is the underlying platform? Will customisations require specialist skills?
  • Ecosystem: Does the vendor offer a strong partner network for implementation, consulting and complementary solutions such as electronic data interchange (EDI) or field service automation?

Choose NetSuite ERP Today

NetSuite ERP is built for your requirements from day one. NetSuite unifies financials, inventory, CRM and analytics in a single cloud platform. The software accelerates implementation, reduces risk with configurable workflows, real-time dashboards and industry best practices. Start with core functions and add modules as you grow, integrate via open APIs and enable teams anywhere.