Two-Tier ERP. Briefly about the important.

Two-tier ERP is an enterprise resource planning strategy that uses two systems to solve the problems of large companies with multiple offices or subsidiaries around the world. Under this strategy, the headquarters will use a tier 1 ERP system that is highly functional and highly customizable, providing the functionality required to manage a global company. At the same time, subsidiaries use a less functional tier 2 ERP system that better suits their local needs.

When using two-tier ERP, a company integrates two ERP systems so information will automatically be transferred from tier 2 to tier 1. This allows you to manage master data or have a single source of accurate data for the entire enterprise. While the responsibilities of each system may vary, tier 1 software often handles core business functions such as finance or purchasing. Tier 2 system manages activities such as sales, marketing, or production processes that are more specific to each subsidiary or location.

A two-tier ERP approach saves money because tier 2 systems are less expensive and give smaller businesses more control, flexibility, and agility to meet their unique and local needs. Many companies have realized that a tier 2 approach is much more cost-effective and requires less effort than replacing Tier 1 ERP or moving a new subsidiary or acquired company onto its enterprise software.