How Two-Tier ERP Systems Can Make Businesses More Effective?

ERP (Enterprise Resource Planning) is the centralized system that offers tight integration with all major enterprise functions such as sales, customer relations, HR, planning and others. The two ERP systems follow the strategy that allows organizations to keep the existing Tier-1 ERP solution to run the common processes, such as financials at the corporate levels and to give subsidiaries. Similarly, the Tier-2 ERP solution attends the specific requirements with huge flexibility, agility, and improved manageability at a lower cost. The two ERP systems are operated simultaneously and integrated.

According to experts, Tier-1 ERP systems are custom made for global enterprises with subsidiaries or local offices with an aim to handle the complexities such companies face. It also enables multiple people to handle the same tasks in the organization. The Tier-1 ERP solutions are hard to configure and usually takes a long time to implement. Also, tier-1 ERP solutions are too expensive for ownership. The popular Tier-1 ERP systems these days include, Infor, SAP, Microsoft Dynamics, and Oracle.

Similarly, Tier-2 ERP systems are more comprehensive to execute core businesses across organizations such as finance, sales, marketing, HR, supply chain and operations. Compared to Tier 1, the ERP systems in Tier-2 are less complex and less expensive. These systems also target the specific needs of an organization, such as manufacturing operations management, retail, distribution and more. The best Tier-2 ERP solution providers in the market are Epicor, NetSuite, Sage, and SYSPRO.

When organizations implement ERP, the value of money is a vital issue for the customers. The two-tier systems can easily provide more value within the same budget for almost two or three times. additionally, it provides customers with what they exactly need. Let’s check out the top benefits of having a two-tier ERP system.

1. Value for Money: Enhancing the two-tier strategy, apart from flexibility, it also brings-in huge amounts as well.

2. Cheap Implementations: The two-tier strategy can often save time and bring down the costs compared to the one-tier approach. It helps subsidiaries to re-use the solution templates defined by headquarters when rolling out the new solution.

3. Pacy Integration: Integrating the two-tier ERP solution can be implemented and made according to the requirements in half the time as compared to a one-tier solution of the same scope.

4. Customization: According to the end-users’ requirements, the two-tiered ERP solutions can be made simple and reduced. The simplified ERP provides more flexibility for the same budget when compared to a customized version of the existing corporate ERPs.

5. Modernize Office Functions: With the seamless ERP system, organizations can cut-short the errors in the financials, CRM and eCommerce.

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