The Absurdity of ERP Vendor Terms That Silence Buyers

At Engleman Associates, Inc. (EAI), we leverage over 25 years and 1,000 ERP projects to provide IT professionals and executives with candid, buyer-focused insights into enterprise resource planning (ERP) systems. In our latest educational video, “Complaining About the ERP Vendor Is Not Allowed,” Mark Engleman examines a troubling trend in ERP vendor contracts: commercial terms that prohibit buyers from making disparaging comments about the vendor.

In recent years, ERP vendor agreements have increasingly imposed restrictive terms that shift risk onto buyers. One particularly absurd example is a clause that seeks to prevent buyers from publicly criticizing the vendor, effectively stifling legitimate feedback. Such terms, often vaguely worded with phrases like “not limited to,” could potentially restrict any negative commentary, public or private. While these clauses may appear mutual, they disproportionately favor the vendor, as buyers—whose operations depend heavily on the ERP system—have far more reasons to voice concerns.

In the video, Mark shares a real-world case where a client successfully challenged and removed this clause, highlighting its lack of rational basis. This example underscores a broader issue: the erosion of buyer control in ERP agreements and the audacity of vendors attempting to suppress valid pushback, whether in user groups, legal actions, or other forums.

Watch the video to learn more about this concerning trend.

For additional insights, explore our related content and video library. We invite you to share your thoughts in the comments below and subscribe for more ERP-focused discussions.

ERP Vendors’ Non-Disparage Terms

Why ERP License Contracts Are Not True Contracts

We are pleased to announce our latest educational video, “Contracts to Access ERP - Are Not Really Contracts”, now available on our YouTube channel and embedded below for your convenience. Designed for IT personnel and executives, this concise video examines why typical ERP license contracts from vendors are so fundamentally flawed that they fail to qualify as legitimate contracts.

Drawing on our experience with over 1,000 ERP projects since 1996, the video explains how ERP contracts often undermine buyer protections through vague language, unilateral seller rights to modify terms, and references to external documents with unclear precedence. These elements, combined with explicit constraints on buyers and broad seller privileges, prioritize vendor control and cost escalation over mutual agreement, particularly given the high costs and risks of changing ERP systems. The video also highlights how this industry trend has worsened over the past 15 years.

Watch the embedded video to gain critical insights into the deficiencies of standard ERP contracts and their implications for buyers. For guidance on securing appropriate commercial terms and costs, explore the related resources linked in the video description. Be sure to like and subscribe to our YouTube channel for ongoing ERP expertise. Thanks for your interest, and certainly call us with questions you may have.

Why ERP Software Contracts Are Nearly Useless for Buyers

Why RFPs Are Unsuitable for ERP Selection

We are happy to announce our latest educational video, “The Unsuitability of an RFP”, now available on our YouTube channel and embedded below for your convenience. Tailored for IT personnel and executives, this concise video explains why the classic Request for Proposal (RFP) process is ill-suited for evaluating and selecting ERP business applications.

Based on our extensive experience with over 1,000 ERP projects since 1996, the video highlights the mismatch between the RFP’s structured approach and the complex, nuanced nature of ERP decision-making. It explores four critical areas—functionality, cost, commercial terms, and implementation services—where RFPs fall short due to vague requirements, opaque pricing models, and the need for direct, strategic engagement with vendors. The video emphasizes that achieving optimal ERP selection, cost control, and durable terms requires hands-on, targeted interactions with sellers, which an RFP cannot practically facilitate.

Watch the embedded video to gain valuable insights into avoiding common ERP selection pitfalls. For additional resources, check the links in the video description and explore our full collection of ERP-focused content. Please like and subscribe to our YouTube channel for ongoing expert guidance.

RFP Approach Fails for ERP Selection

Selecting an ERP Implementer

Engleman Associates, Inc. is pleased to announce the release of our latest educational video, Selecting an ERP Implementer, now available in links below. Presented by Mark Engleman, this video draws on insights from over 1,000 ERP projects since 1996 to provide practical guidance for IT personnel and executives tasked with choosing an ERP implementer.

The video outlines critical factors for evaluating potential implementers, including:

  • Consultant team expertise, particularly the role of the big-picture analyst.
  • Billing rates for consulting and developer roles.
  • Proximity to improve timely on-site support, ideally within one flight leg to minimize delays.
  • Commercial terms that give buyers control over their project and deliverables.
  • Implementer adaptability to align with the buyer’s preparedness.

Additionally, Mark addresses common misconceptions, advising buyers to discount:

  • Statements of Work with unreliable consulting time estimates and costs.
  • Claims of superior methodology, usually just sales rhetoric.
  • General assurances from implementer leadership, which may not address underlying project risks.

Explore these video and our broader collection of ERP resources to support informed decision-making in your ERP initiatives.

ERP Implementer
ERP Implementer

Summary video
on Selecting an ERP Implementer.

Comprehensive video
on Selecting an ERP Implementer.