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Why Cloud ERP is Revolutionizing the Two-Tier Strategy

March 05, 2024

Manufacturing organizations today are looking for comprehensive and robust ways to manage their business needs, which include turning to ERP solutions that can organize and optimize their operations.

However, many organizations who want to scale are finding that a single-tier ERP solution is actually hindering their growth. Having a single-tier ERP at the corporate level means that smaller business units have to align themselves to the one-size-fits-all approach, which can constrain or limit them in their pace of operations. This can create less flexibility, more complexity, and slower time to value.

This is why many organizations are turning to a two-tiered ERP strategy, where one tier runs at the corporate level and another runs at the business unit level. This allows for a unifying ERP across the organization while also empowering individual business units with their own ERP system that caters to their unique needs, resources, and local requirements.

Organizations who want to embark on a two-tier ERP approach can do so more easily because of the cloud, and can find more capabilities and options when utilizing cloud-based ERP applications. Here's why the cloud is making a two-tier ERP approach possible for more organizations:

1. Quicker and Easier Access

Organizations looking to adopt a two-tiered ERP approach will find that it's much more accessible because of today's cloud capabilities. Adopting a second-tier ERP for smaller business units can be done faster with the cloud, with fewer costs and hurdles, giving business units the resource management options they need for better operational functionality. This means that business units can reap the benefits of having their own ERP system immediately, without having to conform to a one-size-fits-all, single-tier ERP.

 2. Lower Costs

The cloud already offers a number of cost-saving opportunities for organizations, and ERP implementation is another area where organizations can save. Implementing a cloud-based ERP system saves costs on implementation and upgrades, partly because you don't have to factor in long-term equipment maintenance. A second-tier ERP system doesn't have to be the same size as the first-tier system, and having a smaller or more tailored ERP running at the business unit level can save costs as well.

3. More Flexibility and Scalability

Using a cloud-based ERP system brings a number of advantages to an organization, including the flexibility and scalability that come with having applications and workflows in the cloud. Cloud systems are more easily accessible by remote or distributed teams as well, and can be adapted to local resources or regulatory needs. By providing this adaptability and scalability at the business unit level with a two-tier approach, organizations can reduce constraints and drive more flexibility across their organization.

 4. Faster Time to Value

The benefits that the cloud brings to an organization, including lower costs, easier implementation, and more flexibility, can result in faster time to value—not just in implementing the new technology but in delivering value to customers as well. Time to value is only compounded by using cloud-based systems and applications because of their increased accessibility, agility, and security.

Let the Cloud Take You to the Next Level

Manufacturing organizations today are looking for comprehensive and robust ways to manage operations. With the cloud capabilities available in ERP systems today, now is the time for your business adopt a two-tiered ERP strategy to increase  flexibility, efficiency, and growth.


Learn more.

These 7 Factors are Driving Demand for a Two-Tier ERP Strategy | Epicor

5 Signs You’ve Outgrown a One-Tier ERP System | Epicor