What are two-tier ERPs?
Two-tier ERP is the methodology of operating two ERP systems simultaneously. One is used as a global ERP software system for running most of your business processes; it works at a corporate level. Other is an additional ERP system for specific divisions, subsidiary levels or regional branches. This small additional ERP system has transactional and operational data that rolls up into the larger Tier 1 ERP system.
Why choosing a Two-Tier ERP software system can be the best solution for your business?
1. LOCATION-SPECIFIC ERP:
If your company has division or branch in other countries, it is necessary to have another ERP system that can respond to location-specific business requirements in multiple countries.
2. TO BE FUNCTIONAL ACROSS AN ORGANIZATION
A company has to manage many different types of business functions. For instance, if one of your business function has certain rules and regulations that must be complied with, it’s better to have other ERP system that suits its needs.
Additionally, two-tier ERP can be deployed through in-house systems or through cloud-based ERP. Below are the top Benefits of Using Two-Tier ERPs:
1. Cost savings
One of the significant benefits of a two-tier ERP system is that it reduces overall costs. But how? Buying additional software systems seems like a more costly idea. However, it’s vital to look at the whole cost of the software solution, both existing and long-term costs. Many times, a Tier 2 ERP system would be purchased for a specific objective. So, this may need very little modifications. Businesses are conscious of the fact that modifications done on main legacy( tier 1) software can cost a fortune. Plus, it takes so much time. Generally, a two-tier ERP has a lower total cost of ownership because here the time taken by the implementation is less.
2. Improved efficiency and better time management
When you implement a two-tier solution, it eliminates the need for an immense IT workforce to be at every location to maintain the legacy ERP systems. The team can also address other issues in the company rather than to be allocated to other positions within the organization. Besides this, it keeps up the productivity at the corporate level. Because, every departmental management has access to real-time data all at once, so they can keep tabs on daily functions/operations as they occur. This way, they can address problems and errors promptly.
3. Increased flexibility and increased productiveness
Having right software tools to perform the job makes it more flexible for businesses to make modifications and run it well. A two-tier ERP offers employees of the company with the information they want to make better decisions and make changes when required.
We, at oodles technologies, are expert in providing best ERP solutions. Feel free to contact us.
