Creating an ERP requirements document: template & criteria for companies

To find a suitable ERP system, a requirements document summarizes all requirements in a structured, written form. It makes vendors comparable, clarifies priorities, and reduces risk in the selection process. Unlike a requirements specification or a functional specification, it describes only what the system must do, not how it will be implemented.

But what belongs in such a document? From project goals and functional requirements to industry-specific criteria such as audit trails or lot traceability: this article walks you through the most important contents.

An ERP requirements document brings together all functional, technical, and organizational requirements for an ERP system. It defines clear goals, prioritizes requirements, and creates a comparable basis for system selection. In the process manufacturing industry, specific criteria come on top, such as lot traceability, audit trails, and validation capability. These ensure regulatory compliance and practical suitability in the long term.

When choosing an ERP system, you will come across a requirements document as well as a requirements specification and a functional specification. These three terms are often wrongly used as synonyms. Yet they describe clearly distinct steps in the selection process:

The requirements document captures all requirements in a structured way and forms the working basis for the upcoming project. The requirements specification formalizes these requirements from the company's perspective: What do you want to achieve? The functional specification then answers the counter-question: How will the technical implementation work? The answer comes from the vendor.

An ERP system forms the backbone of your business processes. Anyone who goes into the evaluation without clearly defined requirements risks choosing a system that shines but does not fit. This is where a structured requirements document comes in.

Its most important tasks:

• Define goals precisely: What should the system do, and who should it serve?
• Make internal processes transparent: Make your own workflows visible before vendors shape the picture.
• Structure requirements for comparison: Compare several vendors realistically.
• Evaluate vendors objectively: Make decisions based on facts, not gut feeling.
• Minimize project risks early: Identify problems before they arise.

In the process manufacturing industry in particular, one principle applies: It is not the sheer range of features that matters. Instead, focus on concrete practical examples, special cases, and regulatory requirements.

A good, well-thought-out requirements document is the basis for a decision that supports you in the long term.

A requirements document is always worthwhile. Its importance grows, however, with the complexity of your own processes. This applies in particular to:

• Companies with complex or interconnected processes
• Companies in regulated industries
• Companies with multiple sites or an international footprint
• Companies with a grown IT landscape and numerous interfaces

In these scenarios, it is essential to clearly describe the requirements of the most important work processes. But what should the document cover?

An ERP requirements document is only effective if it is clearly structured. A breakdown into the following five areas has proven itself:

1. Project and company context

• Goals of the ERP project: What should be possible in the medium and long term?
• Current system landscape: How long will it remain reliable?
• Relevant business areas
• Strategic requirements

2. Functional requirements

• Purchasing, sales, warehouse, production
• Quality control
• Finance & controlling
• Planning and demand management

3. Technical requirements

• ERP integrations and interfaces
• Data migration: Which data moves with you?
• Authorization and role concepts
• Reporting and analytics

4. Organizational requirements

• Project approach
• Training and change management
• Rollout strategy

5. Acceptance criteria

• Measurable target criteria
• Test cases
• Demo scenarios

A structure like this ensures that you look at ERP requirements in the context of processes and goals.

In regulated industries, the requirements for an ERP system are particularly high. Compliance, quality controls, and transparent documentation are mandatory.

Typical requirements in the process manufacturing industry include:

• End-to-end lot tracking across all process stages
• Audit trail to document changes
• Electronic signatures in line with regulatory requirements
• Validatable system landscapes (e.g., GMP, GAMP 5)
• Integrated quality processes with hold and release workflows
• Recipe logic, item concept
• Regulatory requirements such as REACH, CLP, or food safety

Process manufacturers that do not already account for these prerequisites in the requirements document risk gaps in the system design later on, leading to lengthy and expensive adjustments.

But be careful: Not every requirements document helps. It only adds value if it is built carefully. In practice, the same weaknesses appear again and again:

• Requirements that are too general or vague
• Adopting existing processes without questioning them
• Lack of prioritization, so exceptions suddenly become too important
• Compliance topics considered too late
• Demos without reference to real use cases

The last point deserves particular attention: Only requirements formulated with practice in mind make it possible to evaluate vendors realistically.

Requirements set down in writing create a common basis for everyone involved. This can significantly improve the quality of decisions. In practice, this means:

• Clear alignment between business units and IT
• Better comparability of offers
• Fewer misunderstandings during the project
• Lower risk of additional claims and change loops
• Business areas are involved directly

When collecting requirements, you quickly realize there is a lot to consider. The MoSCoW method offers proven guidance for consolidating the requirements for your future ERP. It is a structured framework that creates clarity where there is often disagreement. The acronym stands for:

• Must have: mandatory
• Should have: important, but can be deferred
• Could have: optional and secondary
• Won't have: not relevant right now

Tip: Base your prioritization on actual added value, not on individual opinions. Regulatory requirements, for example, are almost always a clear must-have, as there is little room for interpretation.

Another important step on the way to an ERP: finding the right partner. Choosing an ERP vendor is a strategic decision. It determines whether your requirements can really be implemented.

Typical evaluation criteria you can use as a guide:

• Industry knowledge and project experience: Does the vendor really know your industry?
• Coverage of your requirements in the standard: How much can be mapped without customization?
• Quality of the demos: Are demos realistic and tailored to your processes rather than generic?
• Integration capability and system architecture: Does the solution fit into your existing IT landscape?
• Long-term ability to update and evolve: Does the system grow and change with your company?

A vendor that truly fits you does not just deliver software. It understands your processes, maps them, and supports you in developing them further over the long term. What it takes: an ERP solution that thinks ahead and embraces new approaches.

Learn more about ERP selection.

An ERP system that convinces today must keep up tomorrow as well. Stability alone is no longer enough. What is needed is a solution that is flexible enough to grow.

Future-proof ERP solutions are defined by clear characteristics:

• Scalable architecture: The ERP grows with the company without hitting limits.
• Strong integration capability: The solution connects seamlessly with existing systems and new technologies.
• Clear update strategy: Software stays up to date without disrupting ongoing operations.
• High data quality and transparency: You have a reliable basis for well-founded decisions at all times.
• Built-in compliance: Regulatory requirements are part of the standard.

A good requirements document reflects your reality: regulatory requirements, lot tracking, quality assurance. This is exactly where Yaveon comes in.

Based on Microsoft Business Central, Yaveon offers the industry-specific ERP Yaveon 365. It was developed together with customers from the process manufacturing industry and is therefore specifically suited to the pharma, biotech, chemical, medical device, food, and cosmetics industries.

What you get, among other things:

• End-to-end lot tracking
• Integrated quality inspections
• Production tailored to the process manufacturing industry
• Audit trails and electronic signatures
• GxP and validation requirements: built in from the start, not added later

Everything runs in a single system: from purchasing and production to delivery. Data is available centrally, and manual reconciliation is no longer necessary. The technological foundation is the Microsoft Cloud, with regular updates, high security standards, and the flexibility to easily add new sites or requirements.

With this combination, you make your ERP decision on a solid basis and implement a system that works in everyday operations and stands up to regulatory scrutiny.