Understand a Two-Tier ERP System
Both the manufacturing industry and technology are evolving rapidly and that means change is inevitable. What has always been the traditional approach to ERP systems is an organization using a one-tiered ERP. A one-tiered ERP system refers to a single, integrated software solution that covers the entire organization’s business processes within one unified platform. So, the ERP system serves all departments and functions across the business. This centralized solution has worked well over times, but is it now becoming a hindrance?
Today, many organizations are seeing the value in a two-tiered ERP system approach. This is where one ERP system manages the core of the business, and another manages individual business units. This approach is believed to give the business more flexibility, scalability, and value. Has your business considered this approach?
Here are some signs you have out-grown your one-tier ERP system and should consider a two-tier ERP system:
- Your ERP lacks flexibility and agility: If you are forcing one solution on your business that does not really fit every department, you could be limiting the growth and development of the business.
- You are experiencing increased cost with your ERP system: Some business units have unique needs and as you start adding customizations to help them achieve effective business processes, you are increasing IT costs and resources.
- Your ERP system is creating complexity: Today’s demanding market means bringing all business units under one ERP system can sometimes add complexity when aligning systems, consolidating data, reporting, and meeting required compliances.
- Smaller business units are experiencing inefficiencies from your system: If a business has multiple business units, they typically operate at different speeds and needs, causing some departments to be held back and some to be left behind.
- Your system is hindering growth: Trying to align all the parts can really hold your business back from growing, as it takes longer to realize value.
The era of one-tier ERP systems is fading, and the two-tier ERP system is on the rise. As modern manufacturing operations look to the future, the two-tiered approach to cloud-based ERP strategy can help position them for immediate success and future growth.
2W Tech is an Epicor Platinum Elite Partner and has been working with their impressive solutions for over 35 years! If you are interested in how Epicor Kinetic ERP can fit into your two-tier ERP system, give the team at 2W Tech a call!