The centralized system of ERP (Enterprise Resource Planning) offers similar access to all major business functions such as sales, customer relationships, HR, planning, and others. The two-tier ERP systems allow companies to retain and provide subsidiaries with the current Tier-1 ERP solution. Similarly, with enormous flexibility, agility and improved manageability at a lower cost, the Tier-2 ERP solution meets the specific requirements. There is a simultaneous operation and convergence of the two ERP systems.
According to experts, Tier-1 ERP systems are tailored to meet the challenges faced by these organizations for global companies with subsidiaries or local offices. It also allows multiple people in the organization to handle the same tasks. The Tier-1 ERP systems are difficult to configure and typically take a long time to implement. Tier-1 ERP solutions are also too costly to own. These days, Infor, SAP, Microsoft Dynamics, and Oracle are among the prominent Tier-1 ERP systems.
Tier-2 ERP systems are also more flexible for industries such as finance, sales, advertising, HR, supply chain and operations to handle core businesses. ERP systems in Tier-2 are less complex and less expensive compared to Tier-1 systems. These systems also address an organization's specific needs, such as management of manufacturing operations, retail, distribution, and more. Epicor, NetSuite, Sage, and SYSPRO are the best Tier-2 ERP solution providers on the market.
The two-tier ERP systems provide almost three times more value in the same budget. Therefore, it only gives what customers need. Similar to the one-tier approach, the two-tier strategy can often save time and reduce costs. It lets subsidiaries reuse the solution templates developed by headquarters when the new solution is rolling out. The two-tiered ERP systems can be made simple and reduced according to the requirements of end-users. Compared to a customized version of current corporate ERPs, streamlined ERP provides more versatility for the same budget.