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Two Tier ERP System and why will it soon become a norm

Two Tier ERP System
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Today with the world coming together, there are businesses and even startups which are working in more than one domain and locations from the start. These location wise setup may in turn behave like separate units selling the same product which is localized. When dealing with many location setups at the same time, question arises how do you sync every information and data from all the locations / inventory setups into one and have a visibility over the same. The answer is: Two Tier ERP system.

Usually any company will have an ERP software implemented at their place and they may take more licenses for other locations. Though, sometimes, the company may feel that the single system is not fitting their requirement and they do not have the visibility of all the locations at the same time. Data duplicity is the greatest fear in such times since they may result in a bloated up figure for sales and forecasting. Considering a two tier system seems like a logical fit for these companies.

A two tier ERP system can run more than one integrated solutions flawlessly. In a two tier system, one version is mostly deployed at the corporate level or in the parent company to consolidate most business practices, while the other is deployed in their branches or locations to support specific parts, units or locations that will then be integrated with the main ERP software.


Benefits of a Two Tier ERP System
Example of a Two Tier ERP System


As we can we see from the above example, there is a single main ERP deployed at the Parent company which takes care of the major processes and other locations have the secondary or Tier 2 ERP system which is deployed at the other locations which is integrated to the main ERP system. The data exchanges between the ERP systems help avoiding the duplicity of the data and leakages.


Benefits of two tier ERP System:


Less Complex Training:

Two tier ERP application streamlines the business practices of those enterprises that have undergone mergers and acquisition. The two tier ERP Software will help the old / current employees work on their same technology while being able to sync and work in sync with the company. The merger of two systems removes complexity of the intersection of separate software for each business locations.


Cost Saving:

Two-Tier ERP system can actually save companies money over time. Since other solutions are generally purchased for additional coverage and specific purposes, it has lower cost of ownership and it also required very few modifications. Two Tier ERP Software reduces introduction cost and it also takes very less implementation time.


Increased innovations:

Organization has to face many type of challenges from different locations from their competitors. In a two tier ERP software customization can be done easily to meet the business demand as compared to the main ERP solutions. A Two Tier ERP system fits in the requirement of most of the business enterprises because Tier-1 maintains the basic information like financial activities of the firm. Whereas Tier -2 maintains the transaction data for specific locations. The Two Tier option can save the cost on customizations and takes very less implementation time.


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