How Many ERP Vendors Should You Consider During an ERP Software Selection?
Updated: Oct 21
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Updated in October 2026 with the vendor counts from our own selections.
For a mid-market ERP selection, our plans often allow for five to eight qualified vendors to respond to the RFP and two to four to demonstrate, usually three. Those numbers are a starting point. If only three platforms credibly fit the business, I would rather evaluate those three properly than add vendors to fill the list.
The records behind this update include four selections with complete counts and plans for three additional selections. In the four with complete counts, six to eight vendors were invited to respond in writing and two to four advanced to demonstrations. The additional plans allowed for five to eight RFP invitations. Planned participation and actual participation are different measures, and neither establishes a rule for every company.
The number should follow the company's requirements, the available platforms and implementation partners, and the time the internal team can give to the evaluation. The objective is a credible comparison of options that could realistically run the business.
Why Companies Consider Too Many ERP Vendors
Executives understandably want confidence that a stronger option has not been overlooked. That is a reason to research the market thoroughly. It does not mean every recognizable ERP belongs in the formal selection.
Each additional participant brings questions, proposal review, follow-up meetings, commercial discussions, and evaluation work. The demand becomes more significant at demonstrations, when finance, operations, supply chain, sales, and IT may all need to participate while keeping the business running.
If a vendor is unlikely to meet a critical requirement, the selection team should establish that before asking the business to spend a day evaluating it.
Start With a Broad Market View
The initial market review should be wider than the group invited to the RFP. We use it to identify plausible platforms and partners, including options the client may not already know.
Qualification should consider the way the business operates. For a manufacturer, that might include production methods, scheduling, costing, quality, and traceability. For a distributor, it might include pricing, inventory availability, warehouse processes, and customer service. Company scale, locations, legal entities, integrations, regulatory obligations, and budget also affect the field.
The availability of an experienced implementation partner matters early. A platform that appears to fit is not yet a complete proposal for how the company will implement and support it.
Build a Qualified RFP Long-List Group
Five to eight qualified invitations is a useful planning range in the selections described here. A narrower group can be appropriate when the market has already been assessed or only a few solutions meet the important requirements.
Before inviting a vendor, I want a reason to believe it belongs. That means enough initial discussion to establish potential functional fit, a suitable delivery team, and a plausible commercial range. The RFP then gives the vendor the detail needed to explain its proposed solution and assumptions.
A partner-only selection is different. When the ERP platform has already been chosen, the exercise compares delivery firms rather than software alternatives. One of our partner selections began with nine firms. I would not use that count to recommend nine ERP demonstrations.
What Happened in Our Selections
The written stage helps determine who should continue. In one selection, two of eight invited vendors withdrew after reviewing the RFP. Of the six that continued, two requested additional time. An extension request is something to understand and manage consistently. It is not, by itself, evidence of poor fit.
In another selection, seven written responses became three demonstrations. Another narrowed four responses to three demonstrations. The point of reviewing the responses is to make those decisions before the more demanding sessions begin.
The eventual recommendation is one solution and implementation approach. We maintain a credible alternative through contract discussions where the evaluation supports one. That alternative should be a vendor the client could actually select, with any outstanding questions understood.
Why Vendors Withdraw From an ERP RFP
The two withdrawals in the eight-vendor example were explained in writing. One vendor saw more customization than it wanted to take on. The other questioned whether its system should become the integration hub described in the requirements. Both responses helped the committee understand fit before committing to demonstrations.
A withdrawal can also reflect timing, delivery capacity, or commercial considerations. Ask why, document the answer, and decide what it means for the selection. Do not assume every no-bid says something negative about the product.
The RFP should ask how important requirements will be met through standard functionality, configuration, an add-on, or custom development. A yes-or-no answer alone rarely tells the committee enough about what it would be buying. Specific questions give vendors a better opportunity to identify gaps and explain whether they should remain in the process.
Manage Vendor Communications and Stakeholder Access
The RFP needs a defined route for questions and answers. We want vendors to understand the business, but the client should not have to coordinate a separate selection process for each participant.
Use one primary contact, consolidate questions, and share material clarifications with every vendor they affect. If the scope changes, make that change visible to everyone pricing it. This reduces the risk that apparently comparable proposals are built on different assumptions.
Access to business leaders should have a purpose. Early discussions establish fit. Demonstration preparation addresses the scenarios vendors need to show. Finalist discussions resolve delivery, architecture, governance, and commercial questions. This gives vendors useful access while protecting the time of people whose participation is needed elsewhere.
Evaluate the Implementation Partner Alongside the Software
Several ERP systems may meet the company's functional requirements. The proposed partner's experience, industry knowledge, delivery approach, and working relationship with the client can materially affect the recommendation.
Ask who will configure the system, migrate the data, build the integrations, support testing, and prepare the business for go-live. Where the solution includes other applications or subcontractors, require clear responsibilities and dependencies.
A demonstration can show that a feature exists. The selection also needs to establish who will make it work in the client's environment and what that work includes.
Narrow the Field Before Demonstrations
I usually favor three demonstrations when three credible candidates remain. Two can provide a sound comparison when the earlier qualification is thorough. A fourth can be worthwhile when it offers a meaningful alternative that the committee still needs to evaluate.
The decision should account for the work involved. A scripted demonstration can occupy much of a working day - three to nine hours in our selections, with ten to 25 people from the business taking part. Preparation, scoring, and follow-up add to that commitment. Written proposals also take careful review, but they allow the team to resolve many qualification questions before committing that larger group of people.
Give the finalists common scenarios tied to priority requirements. Have the appropriate process owners score what they see, record questions promptly, and compare the findings while the sessions are still fresh. A smaller demonstration group is valuable because it leaves time for this work.
Give Every Vendor the Same Opportunity to Compete
Vendors should receive consistent requirements, demonstration instructions, pricing scope, and deadlines. The evaluation criteria should be established before the demonstrations.
Follow-up questions will differ because the proposed solutions differ. Fairness means resolving those differences against the same business objectives and sharing changes that affect the competition. It also means explaining why a vendor advanced or was eliminated, using evidence the selection committee can support.
Choosing the Right Number of ERP Vendors
Start broadly enough to understand the market, invite the vendors with a credible fit, and narrow the field as the evidence develops. The committee should be able to explain both its recommendation and the reasons other options did not advance.
John Hannan LLC is a firm of independent ERP selection consultants, and John Hannan has led ERP work since 2002. We help companies qualify ERP vendors, manage RFP communications, run scripted demonstrations, compare costs, and evaluate implementation partners. We lead the process from the client's side so the people who know the business can make an informed decision.
If you are deciding which vendors belong in your selection, talk to John about your ERP program.
Frequently Asked Questions about ERP Selections
How many ERP vendors should be included in an ERP software selection?
Our plans often allow for five to eight qualified RFP invitations and two to four demonstrations, usually three. A smaller group may be appropriate when fewer platforms meet the requirements. Start with the available fit rather than a target count.
Should every ERP vendor that responds to an RFP receive a demonstration?
No. Evaluate the written response, proposed delivery approach, assumptions, and commercial fit first. Invite the candidates whose remaining questions justify a detailed demonstration.
Why do vendors withdraw from an ERP RFP?
Reasons can include functional gaps, customization, integrations, commercial fit, or delivery capacity. Ask for the reason in writing. A clear explanation can improve the evaluation without requiring a demonstration.
How should a company evaluate ERP vendors?
Evaluate how the proposed solution meets the company's requirements, what it costs, and how it will be implemented and supported. Consider the software and the delivery team together, with written responses, scripted demonstrations, references, and due diligence supporting the recommendation.
What is the role of an independent ERP selection consultant?
An independent consultant helps the client assess the market, document requirements, organize the evaluation, compare proposals, and resolve questions before making a recommendation. The client's business priorities should determine the outcome.
