Creating a Specification Sheet - The Key to a Successful ERP Project
Anyone planning a complex project cannot avoid a fundamental task: creating a specification sheet (often called a Requirements Specification). It is the foundation upon which all subsequent success is built. Especially when introducing a new ERP system (Enterprise Resource Planning), the quality of this document often determines whether the project stays within time and budget or becomes a financial fiasco. A precise ERP specification sheet forces you to question your processes, define goals, and rule out misunderstandings with software providers right from the start.
In this comprehensive guide, you will learn exactly how to structure a professional specification sheet, what content is indispensable, and how to avoid typical pitfalls.
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Table of Contents
- 1. What is a Specification Sheet? Definition & Difference from Functional Specification
- 2. Why a Detailed ERP Specification Sheet is Indispensable
- 3. Preparation: Before You Write the Specification Sheet
- 4. Structure: Layout and Content of a Professional Specification Sheet
- 5. Common Mistakes When Creating a Specification Sheet
- 6. Checklist: Success Factors for Your Specification Sheet
- 7. Excursus: Leading ERP Systems – Orderwise, Fortee & 123insight
- 8. FAQ – Frequently Asked Questions
1. What is a Specification Sheet? Definition & Difference from Functional Specification
Before we go deep, we must clarify the terminology. In project management, "Lastenheft" (Requirements Specification) and "Pflichtenheft" (Functional Specification) are often confused, but they designate two completely different documents with different authors.
The Requirements Specification (Lastenheft) is created by the client (you). It describes the entirety of the requirements for the deliveries and services of a contractor. In short: It describes the "WHAT" and "WHAT FOR".
The Functional Specification (Pflichtenheft), on the other hand, is the contractor's (ERP provider) answer to it. It describes "HOW" and "WITH WHAT" the requirements will be implemented.
Comparison: Requirements Specification vs. Functional Specification
| Feature | Requirements Specification (User Specs) | Functional Specification (Technical Specs) |
|---|---|---|
| Feature Author | Requirements Specification (User Specs) Client (Customer) | Functional Specification (Technical Specs) Contractor (Provider) |
| Feature Content | Requirements Specification (User Specs) Demands, goals, framework conditions ("What should the system do?") | Functional Specification (Technical Specs) Solutions, technical implementation, detailed planning ("How do we implement it?") |
| Feature Timing | Requirements Specification (User Specs) Before contract award | Functional Specification (Technical Specs) After contract award / in the start phase |
| Feature Purpose | Requirements Specification (User Specs) Basis for offers and comparability | Functional Specification (Technical Specs) Basis for contractual implementation |
2. Why a Detailed ERP Specification Sheet is Indispensable
Many companies underestimate the effort involved in creating a specification sheet and start conversations with ERP providers with vague ideas. This is dangerous. An ERP system is the heart of your IT infrastructure. Without clear specifications, you risk:
- ❌ Cost Explosions: Subsequent changes (Change Requests) are expensive.
- ❌ Functional Gaps: Important processes are not covered by the standard.
- ❌ Delays: Endless coordination loops eat up valuable resources.
A good specification sheet serves as:
- ✅ Decision Basis: It makes offers from different providers comparable.
- ✅ Contract Component: It legally protects you if services are not rendered.
- ✅ Communication Tool: It forces all departments to clearly define their processes.
3. Preparation: Before You Write the Specification Sheet
Do not sit down at the computer and start writing immediately. The quality of the specification sheet arises in the preparation.
Stakeholder Analysis:
Talk to all departments. Accounting has different requirements for an ERP than Sales or Production. Form an interdisciplinary project team.
Process Recording:
Document your current processes. Where are the bottlenecks? Where are there media disruptions (e.g., transferring data from paper to Excel)? Only those who know the ACTUAL state can define a better TARGET state.
Tool Tip: Instead of starting from scratch, use the Online Specification Generator from ERP Planner. It guides you like an interview through the various company areas (sales, purchasing, warehouse, etc.) and automatically creates a structured Excel document at the end, which you can use directly for your tender.
4. Structure: Layout and Content of a Professional Specification Sheet
Although there is no rigid standard, a proven structure has been established for IT and ERP projects. Orient yourself to the following outline to ensure nothing is forgotten.
4.1 Introduction & Project Goal
Start with the "Big Picture". Describe your company, the industry, and the motivation for the project. Why are you looking for a new ERP? Do you want to grow, replace old systems, or automate processes?
4.2 Description of the ACTUAL State
Here you describe the current system landscape.
- Which software is currently in use?
- Which interfaces exist?
- Hardware and network infrastructure.
- Quantity structures (number of users, documents per day, item master data).
4.3 Description of the TARGET State (Functional Requirements)
This is the core part. Use tables to clearly structure requirements. Divide them into "Must" criteria (knock-out criteria) and "Should/Can" criteria (wishes).
| Area | Requirement | Priority |
|---|---|---|
| Area Purchasing | Requirement Automatic order proposals at reorder level | Priority Must |
| Area Sales | Requirement Mobile app for field service with CRM access | Priority Should |
| Area Warehouse | Requirement Connection of handheld scanners (MDE) | Priority Must |
4.4 Non-Functional Requirements
Do not forget the technology and framework conditions:
- Performance: System response times.
- Usability: Accessibility, languages, intuitive operation.
- Security: Data protection (GDPR), backup concepts, role and rights system.
- Operating Model: On-Premise (own server) or Cloud ERP?
4.5 Interfaces & Migration
Which third-party systems must be connected? (e.g., CAD software, payroll, online shop, customs software). How should legacy data be migrated?
4.6 Scope of Delivery & Acceptance Criteria
Define exactly what is to be delivered (licenses, training, documentation) and when the project is considered successfully completed.
5. Common Mistakes When Creating a Specification Sheet
Even experienced project managers make mistakes. Watch out for these warning signals:
- ⚠️ Describing Solutions Instead of Requirements: Do not write "We need a button at the top right", but "The user must be able to complete the process with one click". Leave the "How" to the expert.
- ⚠️ Unclear Formulations: Terms like "fast", "user-friendly", or "promptly" are not testable. Be concrete: "Load time under 2 seconds".
- ⚠️ Copying Templates: Specification sheet samples are helpful, but do not copy them blindly. Your company is individual.
- ⚠️ Getting Too Technical: The specification sheet is a functional document. Technical details belong in the functional specification (Pflichtenheft), unless you have mandatory technical specifications.
6. Checklist: Success Factors for Your Specification Sheet
Check your document for these points before sending it to providers:
- ✅ Is the ACTUAL state described honestly and completely?
- ✅ Are all MUST criteria clearly marked as such?
- ✅ Were all relevant stakeholders (specialist departments) involved?
- ✅ Are the requirements formulated in a solution-neutral way?
- ✅ Does the document contain clear acceptance criteria?
7. Excursus: Leading ERP Systems – Orderwise, Fortee & 123insight
Once you have created your specification sheet, it's time to select the right provider. In the market, three distinct solutions have established themselves for specific business needs: Orderwise, Fortee, and 123insight.
Orderwise: The Stock-Centric Solution
Orderwise is not just an ERP that happens to include warehouse functionality; it is a warehouse-first, stock-centric ERP solution. It is designed specifically for businesses where stock is the central heartbeat of operations - such as wholesalers, distributors, and trade-focused retailers who manage both physical stores and online channels.
- Focus: Businesses that are truly stock-centric (Wholesale, Distribution, Retail).
- Key Feature: Unified platform managing operations from purchasing to fulfillment without disjointed "modules."
- Advantage: Provides a single source of truth for high-volume stock operations across multiple channels.
Fortee: Cloud ERP for Industrial Startups
Fortee is a fully-featured, cloud-based ERP solution built specifically for industrial start-ups and small manufacturers. It aims to take the risk out of digital transformation by offering a low-commitment entry point.
- Focus: Small manufacturing companies and industrial start-ups.
- Advantage: Zero-commitment start-up fee and a rapid "learn-as-you-go" implementation process (often 40 days or less).
- Technology: Modern SaaS architecture with mobile apps and open APIs for interoperability.
123insight: The Scalable Manufacturing ERP
123insight is an award-winning ERP/MRP system designed for discrete manufacturers. It is well-known for its unique business model that avoids large upfront capital outlays, making it a low-risk option for manufacturers of all sizes.
- Focus: Discrete manufacturing (Electronics, Engineering, Aerospace, etc.).
- Key Feature: Subscription-based model with no minimum contract period.
- Advantage: Covers the entire process from Enquiry to Invoice, with strong traceability features essential for regulated industries.
8. FAQ – Frequently Asked Questions
Can I generate a specification sheet online?
Yes, platforms like ERP Planner offer generators. You answer questions about your processes, and the tool creates a finished specification sheet. This saves time and ensures that no important areas are forgotten.
Who creates the specification sheet?
The specification sheet is always created by the client (customer) or an external consultant commissioned by them. It defines the requirements for the project.
How extensive should a specification sheet be?
That depends on the complexity of the project. For an ERP implementation, 20 to 50 pages are not uncommon. However, precision is more important than length: "As short as possible, as detailed as necessary."
What does it cost to create a specification sheet?
If you create it internally, it costs primarily your employees' working time. External consultants charge between 3,000 and 15,000 Pounds depending on the project size, which often pays for itself by avoiding mistakes during the project.
Is a specification sheet legally binding?
Yes, as soon as it becomes part of the contract. It serves as a reference document in disputes about whether a service was rendered or not.