Purpose

The Council’s current ERP system, SAP ECC6, underpins essential operations across the council, including Finance, HR, Purchasing, and Payroll. A replacement is needed because extended support for SAP is ending in 2030.  Action is required now, due to the long timescales required to implement an ERP solution, to ensure a controlled approach that minimises risk. 

The proposed investment in a new ERP solution, and associated business change activities, will ensure full adoption of the solution and maximise the benefits realised - supporting improvements in local government efficiency and transparency (through better reporting), as well as ensuring a resilient platform aligned with Council needs now and in the future.

The report seeks Cabinet approval to:

1.    Procure a replacement Enterprise Resource Planning (ERP) system and implementation partner via the Government Commercial Agency Back Office Services 2 Framework, Lot 1.

2.    Allocate existing capital funding of £9.75m from the Innovation and Modernisation Fund to support programme delivery

3.    Delegate authority for the contract award decision to the Deputy Chief Executive and Executive Director of Public Health and Corporate Resources, in consultation with the relevant Portfolio Holder and statutory officers.

Following completion of the planned procurement activity and appropriate due diligence, it is expected to award a 7-year contract with extension options up to a further 7 years.

Background papers

Approval of Innovation and Modernisation fund, budget council 25th February 2026 - Agenda for Council on Wednesday 25th February 2026, 5.30 pm | Kirklees Council
The detail of the capital plan is in the appendix here: https://democracy.kirklees.gov.uk/documents/s67465/APPENDIX%20E%20-%20Capital%20Plan.pdf

Decision

RESOLVED – That approval be given to (i) procure a replacement Enterprise Resource Planning (ERP) system and implementation partner, under a single contract, via the Government Commercial Agency (Crown Commercial Services) Back Office Services 2 Framework, Lot 1 (para 2.11, 2.12 refer) (ii) allocate existing capital of £9.75m from the Innovation and Modernisation Fund to support programme delivery and note the allocation of up to £1.25m from the Transformation Reserve for the ‘Prepare and Procure’ phase (iii) delegate authority for the contract award decision to the Executive Director of Public Health and Corporate Resources, in consultation with the Cabinet Member for Corporate Services, Service Director for Finance, Service Director for Legal Governance and Commissioning, and Service Director for Strategy and Innovation.