ERP Outsourcing - How to start smart with an independent advisor

If you’re evaluating a new ERP and know you’ll need help, the best first move is a light engagement with an independent advisor—someone who understands your industry and the ERP market that serves it, but has no financial tie to any vendor or Systems Integrator (SI). In my experience, that independence shields teams from early mistakes: buying on a slick demo, under‑scoping integrations, or signing contracts that lock in high renewals.

Outsourcing the selection leadership doesn’t mean handing your future to a black box. It means putting a seasoned, objective lead on your side to structure the work, surface trade‑offs, and force evidence over claims.

What “ERP outsourcing” should and shouldn’t mean when considering an independent advisor

• Should mean - Outsourcing selection leadership and (optionally) client‑side implementation PMO, problem framing, requirements, day‑in‑the‑life demo scripts, scoring, reference checks, SOW/contract hygiene, cutover assurance.

• Shouldn’t mean - Letting a software vendor or SI run the selection. Vendors are experts in their product, not in orchestrating objective comparisons or negotiating renewal caps on your behalf.

Our model is intentionally lean - Senior operators only, no bench‑padding. That typically comes in ~30% lower than big firms with heavy overhead, while delivering higher-quality service and better outcomes than big brands, who sell with their senior team and then deliver with junior consultants.

When outsourcing selection is the right move

• Manufacturing (discrete/process) - Complex BOM/routings, finite scheduling, real‑time shop data, lot/serial handling, QC holds, labeling, cycle counting, and scanning—plus the realities of changeovers and manpower capacity, create failure points if they aren’t validated in demos and contracts. (Think how pick lists are generated, where WIP lives, or who records time and scrap.)

• Distribution - Multi‑branch inventory, tiered/contract pricing, chargebacks/rebates, EDI, 3PL, and cash‑application automation must be proven with your data, not promised. A good selection scripts those scenarios and verifies the system’s pricing engine, bank file standards (BAI2/MT940), and chargeback structures (including indirect hierarchies) before you buy.

• Regulated (if applicable) - If you operate under FDA/EMA or similar regimes, you’ll add audit trails, e‑signatures, and validation to the selection criteria so your shortlist is CSV‑ready from day one, no surprises late in the program. (EDMS/SOP control, Part 11 signatures, and independent, non‑erasable audit trails are not “nice to have.”) Side note: In an anonymized biopharma launch program, ERP with 3PL integration and electronic signatures was implemented alongside validation activities—timelines stayed tight because validation needs were baked into selection and scope, not appended later. And for context, typical life‑sciences regulatory touchpoints include 21 CFR Part 11, GxP, and DSCSA, worth factoring in if they apply to you.

A practical outsourcing playbook (how we run it)

1. Frame the problem like an operator, not a salesperson

   • Value drivers, constraints, non‑negotiables (e.g., revenue recognition, lot/traceability, pricing/chargebacks, shop/warehouse automation).

   • “Bad outcomes to avoid” (e.g., data rework, unpriced renewals, uncontrolled customizations).

2. Translate reality into requirements that are testable

   • Shortlists aren’t built from feature lists,they’re built from scenarios: the real mix of orders, items, plants/branches, customers, and controls that make you money (and keep you compliant).

   • For distribution, that includes parent/child pricing, indirect customer hierarchies, and contract claims; for manufacturing, it’s routings, finite resources, QC holds, labels, and cycle counts.

3. Script “day‑in‑the‑life” demos using your data

   • Every vendor gets the same script. We watch how they:

     • Price complex orders, manage allocations, and apply chargebacks;

     • Plan capacity, generate pick lists, capture labor/machine time, handle rework/scrap;

     • Secure data and approvals; and (if regulated) manifest e‑signatures and audit trails.

4. Score with weightings you agree to in advance

   • Weighted criteria, red/yellow risk notes, TCO with 5‑year view (licenses, services, data, integrations, validation where relevant). References and proof points beat adjectives.

5. Get the contracts right (this is where independence pays)

   • We negotiate renewal caps, user/license definitions (named vs. concurrent), true‑up mechanics, sandbox/test environments, API rate/entitlements, data export rights, acceptance criteria, change‑control, and implementation SOWs with measurable deliverables.

6. Set up implementation to succeed

   • Client‑side PMO, RACI, RAID, cutover plan & dry runs, role‑based security, test strategy (unit→SIT→UAT), training/SOP updates, and Day‑1/Week‑1 hypercare—so go‑live means go‑better, not just go‑live.

     
     

Common traps (and how outsourcing avoids them)

1. Demo‑driven buying - UI love ≠ execution fit. Scripts and scorecards keep you honest.

2. Scope anesthesia - Everything looks easy in a slide, until you cost data, integrations, and change.

3. Renewal exposure - Without caps and exit rights, you’ll pay more every cycle.

4. Partner misalignment - he best SI for finance may not be the best for WMS, quality, or pricing.

5. Validation bolted on late (if regulated) - Bake Part 11/CSV expectations into the shortlist and SOW.

   
   

What you outsource vs. what you keep in‑house

• Outsource - Selection leadership, demo scripting & scoring, contract/SOW negotiation, integration & data strategy, test/cutover playbooks, client‑side PMO.

• Keep - Process SMEs, data owners, super users, change champions. (Your people make the ERP yours.)

  
  

Why a boutique, independent bench works

Large selection firms often sell with senior partners and deliver with juniors. Our model is the opposite: average tenure >20 years, zero commission/revenue from vendors, and no non‑billable overhead in your budget. You get senior attention on the work that moves the needle—requirements, evidence, and decisions.

How to start

• 30–60 minute scoping call - Your business model, pain points, and constraints.

• We draft a one‑page selection plan with a first‑pass vendor landscape and the day‑in‑the‑life demo themes that will separate contenders.

• If you want to keep going, we formalize a short, Selection Sprint to produce the scripts, scorecard, and negotiation checklist.

FAQ

• Is outsourcing ERP selection worth it for SMB/mid‑market? 

  • Yes, especially where failure risk is tied to pricing/chargebacks, WMS, plant scheduling, or compliance.

• Do we need validation? 

  • Only if you’re regulated; if so, require audit trails, e‑signatures, and traceable test evidence in the shortlist and SOW.

• Can one vendor do it all? 

  • Sometimes, but we often assemble the right SI + ISV mix and lock accountability into contracts.

Closing

You've come this far on this blog about ERP Outsourcing with an independent advisor. If you’re at the beginning and want a neutral second brain, I’m happy to review your goals and sketch a selection plan, no sales pressure. We can also share sample artifacts (scorecard, demo script, negotiation checklist) so you can see the approach before you commit.