Choosing an ERP system isn't about comparing feature lists on a spreadsheet. It's about finding a solution that gives your finance team, warehouse staff, production managers, and sales coordinators a single source of truth, without nasty surprises when you go live.
This guide provides the critical questions to ask ERP vendors, explains why each question matters, and shows you what good answers look like. It's written specifically for New Zealand manufacturing and distribution businesses that care about inventory accuracy, traceability, reliable lead times, and month-end closes that happen on schedule.
Important: Don't just collect answers. Ask for evidence, a demo using your actual data, reference calls with companies in your industry, and sample outputs like reports, labels, and EDI documents.
For each section below, you'll find:
Why it matters: Projects succeed when outcomes are concrete and measurable. Vague promises like "better visibility" don't help. Specific goals like "close the month 5 days faster" or "reduce stockouts by 30%" give you clear targets.
What good looks like: The vendor translates your business outcomes into a detailed scope, metrics, and a phased implementation plan. They propose a realistic Phase 1 focusing on finance, inventory, and order processing, with later phases covering warehouse management, project costing, MRP, and planning tools.
Red flags: Answers like "it depends" without any attempt to quantify results. Or worse, cramming every feature into Phase 1, which inflates risk and delays value.
Why it matters: Trying to implement everything at once creates chaos. You need disciplined scope management that delivers early wins without abandoning your long-term requirements.
What good looks like: A visible project backlog, formal change control processes, and clear 90-day value sprints that build on each other.
Why it matters: If you handle food, chemicals, components, or any regulated products, you need clean product lineage. A recall should take minutes, not days.
What good looks like: Native lot and serial number tracking, first-expiry-first-out picking waves, instant recall reports, and the ability to attach compliance documents (like MSDS or COA certificates) to shipments and invoices.
Red flags: "We can customise that later" means it's not built in. You'll pay more and wait longer.
Why it matters: Profit lives in the details. Channel-specific pricing, rebate accruals, freight costs, and import duties all impact your actual margins. You need to see the real numbers in real time.
What good looks like: Margin calculations by product, customer, and project that update automatically. Rebate accruals posting without manual journal entries. Landed cost components flowing through to inventory valuation.
Why it matters: Many distributors now assemble kits or configure products. Manufacturers need proper bills of materials, component backflushing, and work-in-progress visibility.
What good looks like: Support for both simple kits and multi-level BOMs. Available-to-promise calculations that consider job and project commitments. One-click access to project profitability.
Why it matters: Your ERP doesn't exist in isolation. Connecting to external systems is where hidden risks emerge. You need to know what works out of the box and what requires custom development.
What good looks like: Modern REST APIs, webhook capabilities, integration platform options (iPaaS), and certified pre-built connectors. A clear roadmap showing which integrations are essential for day 1 and which can wait until day 90.
Red flags: Only batch file transfers supported. Requirements for custom middleware to handle basic connections.
Why it matters: Duplicate data destroys reporting accuracy and creates poor customer experiences.
What good looks like: Governance rules controlling who can create records, validation rules preventing duplicates, deduplication tools, and comprehensive audit trails showing what changed and when.
Why it matters: You need configuration anchored to your actual business reality, not a generic demo that looks impressive but doesn't match how you work.
What good looks like: Iterative implementation sprints with regular playback sessions using your real data. Early trial data loads with reconciliations to prove the migration approach works.
Red flags: Generic demonstrations that don't address your specific workflows.
Why it matters: Unclear roles and responsibilities cause project delays and finger-pointing when issues arise.
What good looks like: Named individuals for each role, realistic time commitments documented, and a working RACI matrix (Responsible, Accountable, Consulted, Informed). Regular weekly touchpoints with clear agendas.
Red flags: "We'll sort that out as we go" means they don't have a proven methodology.
Why it matters: Smooth transitions prevent operational downtime. But if something goes seriously wrong, you need a tested plan to roll back.
What good looks like: Defined freeze windows, opening balance procedures, reconciliation packs to verify accuracy, and a documented backout plan that's actually been tested.
Why it matters: Migrating too much data slows the project. Migrating too little hurts your ability to analyse trends and meet audit requirements.
What good looks like: Migrate open items and current balances for speed, plus targeted transaction history where regulatory audits demand it. Proven reconciliation templates for trial balance, accounts receivable, accounts payable, and inventory values.
Red flags: "Just bring everything" without understanding what you actually need.
Why it matters: Reports and dashboards are the user interface for business leaders. If executives can't quickly see what matters, the system fails regardless of what's happening under the hood.
What good looks like: Role-based dashboards with drill-down capability. Metric definitions that match your finance team's calculations. Real-time or near-real-time updates.
Why it matters: You need least-privilege access controls and defensible compliance. Plus, for New Zealand businesses, data residency matters for both privacy regulations and data sovereignty concerns.
What good looks like: Role templates that enforce segregation of duties, automated checks that flag conflicts, immutable audit logs, and hosting options in New Zealand or Australia data centers. Clear recovery point objectives (RPO) and recovery time objectives (RTO) for disaster recovery.
Red flags: "We can just create a super-user account for everyone" means security is an afterthought.
Why it matters: User adoption determines success or failure. If everyday tasks require too many clicks or workarounds, staff will resist the system or find ways around it.
What good looks like: Clean navigation, barcode scanning workflows for pick-pack-ship processes, quick approval mechanisms, saved searches for common tasks, and intuitive interfaces that don't require constant training refreshers.
Red flags: Staff still needing spreadsheets for basic tasks. Too many screens to complete simple workflows.
Why it matters: Work happens everywhere now—not just at desks. Your team needs to approve purchase orders from home, confirm deliveries on-site, and check inventory from the warehouse floor.
What good looks like: Native mobile apps or responsive web interfaces. Offline-capable patterns for areas with poor connectivity.
Why it matters: When your ERP goes down, every minute costs money and frustrates customers. You need to know response times and escalation paths before you sign a contract.
What good looks like: 99.9% or better uptime guarantees, 24/7 support for critical issues, clear escalation matrix, and transparent status pages showing current system health.
Why it matters: Local context matters. New Zealand has specific tax requirements, freight realities, and supply chain considerations. You want to talk to companies who've successfully navigated these challenges.
What good looks like: Multiple reference customers in manufacturing or distribution with similar complexity to your business. Willingness to facilitate direct conversations.
Why it matters: Subscription fees are just the starting point. Hidden costs in data migration, integrations, customisation, and support can double or triple your investment.
What good looks like: Transparent cost modeling with sensitivity analysis for different user counts, modules, and growth scenarios. No surprises or "budget cliffs" in year two.
Red flags: Vague pricing or significant costs buried in change orders.
Why it matters: Custom code increases upgrade friction and long-term maintenance costs. You want to know what's possible within standard configuration before committing to expensive customisations.
What good looks like: "Configure before customise" philosophy. Access to app marketplaces and low-code tools for safe extensions that don't compromise upgradeability.
We help New Zealand manufacturers and distributors turn these questions into a selection process that actually works. Our approach includes readiness assessments, data quality reviews, demo scripts built around your specific scenarios, pilot projects with real transactions, and phased implementation plans that deliver value in weeks, not years.
We specialise in three leading cloud ERP platforms:
Want a neutral assessment of your ERP shortlist or help running outcome-based vendor demos? Book a 30-minute ERP readiness consultation and we'll map out your next steps.
Verde Group NZ is a leading provider of cloud ERP solutions, specialising in MYOB Greentree, MYOB Acumatica, and Oracle NetSuite implementations for New Zealand businesses.