ERP Guide

How to Choose an ERP: Selection Checklist and Cost

Choosing an ERP is a decision you will live with for years. The right choice comes from your own processes and numbers, not from feature lists. This guide walks through the selection process, what ERP really costs, and how to score the options side by side.

DotOne team Updated 27 Oct 2026 10 min read
On this page
  1. How to choose an ERP in 7 steps
  2. Requirements checklist for Indian manufacturers
  3. How much does ERP cost?
  4. Score the options side by side
  5. Questions to ask every ERP vendor

How to choose an ERP in 7 steps

  1. Write down the problems. Late deliveries, wrong stock, slow billing, no costing: list what has to change, with examples.
  2. Map your must-haves. For an Indian manufacturer that usually means GST invoicing and e-way bills, BOMs and production, batch or serial tracking, multi-warehouse stock, and Tally or accounting.
  3. Shortlist three or four. Pick options built for your size and industry, not the biggest names.
  4. Script the demo. Send each vendor two or three of your real scenarios and ask them to run those, not their standard tour.
  5. Check fit and gaps. Note what works out of the box, what needs configuration and what needs custom development.
  6. Work out total cost. Subscription or licence, implementation, training, customisation and support over three years.
  7. Talk to a reference customer in your industry, and ask how long go-live really took.

Requirements checklist for Indian manufacturers

AreaWhat to check
Sales and billingQuotations, proforma invoices, GST invoices, e-invoicing and e-way bills, credit limits
InventoryMulti-warehouse, batch and serial, reorder levels, units of measure, stock takes
PurchasePurchase requests, RFQs, approvals, goods receipt with quality check
ProductionMulti-level BOMs, job cards, material issue, scrap, output by shift
QualityIncoming, in-process and final inspection, holds and rejections
AccountsLedgers, receivables and payables, bank reconciliation, or sync with Tally
HR and payrollAttendance, leave, PF, ESI, PT and TDS
AccessCloud, mobile app, role-based access, audit trail

How much does ERP cost?

ERP pricing follows one of three models:

  • Cloud subscription: a monthly or yearly fee, often by plan, users or modules. No server to buy.
  • Perpetual licence: a one-time licence plus a yearly maintenance fee (AMC), with your own server.
  • Open source: free software, but you pay for implementation, hosting and customisation.

Whatever the model, compare the total cost over three years:

Cost itemWhat to ask
Subscription or licencePer user, per module or per plan? What happens when you add users?
ImplementationFixed price or by the day? What is included?
CustomisationRate per change, and does it survive upgrades?
Hosting and ITIncluded for cloud; servers, backups and IT staff for on-premise
Support and upgradesIncluded, or a yearly AMC?
TrainingIncluded for all users, and for new joiners later?

For reference, DotOne has a free Starter plan and paid plans from ₹15,000 a month, with manufacturing included from the Business plan. See pricing.

Score the options side by side

Give each requirement a weight, score each ERP from 1 to 5, and multiply:

CriterionWeightERP AERP B
Fits our production and stock process30%43
GST, e-invoice and Tally or accounting20%54
Ease of use on the shop floor and mobile20%42
Three-year total cost20%34
Implementation time and support10%43
Weighted score (out of 5)4.03.2

Questions to ask every ERP vendor

  • Can you show our scenario, with our item and BOM, live in the demo?
  • What is standard, what is configuration and what is custom development?
  • How long did your last three customers in our industry take to go live?
  • How do GST, e-invoicing and e-way bills work, and who updates them when rules change?
  • Can we export all our data if we leave?
  • What does support look like after go-live, and in which language and hours?

Frequently asked questions

How do I choose the right ERP?

List the problems you need to solve and your must-have features, shortlist three or four ERPs built for your size and industry, have each run your own scenarios in a demo, compare three-year total cost, and talk to a reference customer.

How much does an ERP cost in India?

It ranges from free or low-cost plans for small teams to large licence and implementation fees for enterprise suites. Compare total cost over three years, including implementation, customisation and support, not just the subscription.

What is the difference between cloud and on-premise ERP pricing?

Cloud ERP is a subscription that includes hosting and upgrades. On-premise ERP is a licence plus servers, IT staff and a yearly maintenance fee. See cloud vs on-premise ERP.

How many ERPs should we shortlist?

Three or four. More than that makes demos hard to compare; fewer leaves you with no real choice.

What does DotOne cost?

There is a free Starter plan, and paid plans from ₹15,000 a month. See pricing.

Bring your scenario to a demo

Send us one of your real orders and we will run it end to end in DotOne in a 30-minute demo.