Challenges Japanese Companies in Thailand Face When Selecting an ERP System (2)

Date : 20-05-2026

Defining Requirements for Your Ideal ERP System

Building on our previous discussion of the current landscape for Japanese companies in Thailand, this article focuses on how to define the requirements for an ideal ERP system—requirements that will serve as the foundation for vendor proposals.

For Japanese managers newly posted to Thailand, the first instinct is often to understand the current operational workflows: “How exactly does work get done within our organization?”

This is, of course, a natural starting point. Without a clear view of who does what and how processes flow, it is difficult to identify issues, set priorities, or define system requirements. In fact, we frequently encounter organizations that have taken the initiative to map out their workflows internally.

That said, such workflow documentation rarely proves sufficient when it comes to ERP selection. There are several reasons for this :

• When developed by business units, process descriptions often lack consistency or sufficient detail, making them inadequate for system design and evaluation.
• When driven by IT, the focus tends to skew toward system logic, with limited attention to real business operations.
• Even where workflows are well documented, it can be difficult to distinguish between processes that can be changed and those that cannot. As discussed previously, this requires a deeper understanding of why current practices exist—a step that is often easier said than done.

For these reasons, many organizations engage external partners—such as consulting firms or system vendors (hereafter referred to as “vendors”)—to conduct structured current-state assessments. By bringing an objective, third-party perspective, vendors can consolidate insights from both business and IT stakeholders into a clearer picture of processes, systems, and key improvement areas.

Key benefits of engaging a vendor include :

• Standardized output: Deliverables follow established methodologies, ensuring consistent quality and level of detail.
• Objectivity: Vendors are not influenced by internal hierarchies or relationships, enabling them to capture realities from both management and frontline staff.
• Cross-industry insight: Drawing on experience from similar projects, vendors can challenge “we’ve always done it this way” thinking and introduce new perspectives for problem-solving.

However, it is important to note that the scope and quality of “current-state assessments” vary significantly across vendors. As such, these benefits are not always guaranteed. This naturally leads to the question : What should you look for when selecting a vendor?

Key Consideration (1) : Ability to Communicate Effectively with Local Staff in Thai

Because day-to-day operations are largely carried out by Thai employees, interviews during the assessment will primarily involve local staff. While it may seem obvious that vendors should be able to communicate in Thai, this is not always the case in practice.

For example :

• In globally led ERP initiatives, headquarters may appoint a Japan-based consulting firm, which conducts short-term onsite assessments using English as the primary language.
• Some Japanese vendors in Thailand rely on Japanese consultants to lead interviews, with Thai consultants playing limited roles as interpreters or assistants.

From our experience, Thai operational staff place a particularly strong emphasis on direct communication in their native language—more so than in other ASEAN countries. Even when discussions appear to proceed smoothly in English or via interpretation, there is often an underlying gap: staff may feel that their true concerns are not fully understood. This can reduce engagement and ultimately limit the depth of insights gathered.

For this reason, when selecting a vendor, it is critical to ensure that experienced Thai consultants—capable of independently leading interviews—play a central role in the assessment.

We will continue to explore additional considerations when engaging vendors in our next article.