Two-Tier ERP Strategy: Run SAP ERP at Headquarters - Integrate to SAP Business One at Subsidiary Loc
Two-tier enterprise resource planning, a blend of on-premise and cloud ERP solutions, is not a new concept. But in today’s market, there are a number of factors pushing companies to further adopt this model.
Whether you’re a multisite company operating in one geographic region or an organization in multiple locations and countries, determining which Enterprise Resource Planning (ERP) software strategy is right for you can be a daunting challenge. As more and more companies are meeting their growing international, multisite needs by implementing a two-tier ERP strategy.
What is a two-tier ERP?
When the parent organization runs on one system and subsidiaries operate a smaller version of the same platform. This allows information to be easily consolidated, giving the parent company a comprehensive view of the subsidiary’s operations.
Two-tier ERP is a business and technology strategy that enables organizations to keep their existing ERP systems at the corporate level, while empowering subsidiaries to use a secondary version of the same solution.
When Do Organizations Use Two-Tier ERP?
A business with a very specific local focus – single-site or multi-site within a single country or region.
A business with operations geared strongly toward a specific industry that doesn’t feature strongly at corporate headquarters.
A newly-acquired operation with a mismatch of multiple outdated, unsupported ERPs.
A small subsidiary with no formal ERP in place.
A small operation at the second-tier which doesn't warrant the use of enterprise ERP software, but may be brought into the corporate fold as operations grow.
The Benefits of Two-Tier ERP & Why to choose a two-tier ERP system.
Enhancing global operations;
Responding to location or region-specific business needs;
Maintaining an existing legacy ERP system; and Giving business units the ability to use individual ERP systems.
In addition, organizations can deploy two-tier ERP solutions either on premises or in the cloud.
Five unique benefits of two-tier ERP:
Increased efficiency for time management.
Comprehensive business functionality.
Easily configurable performance.
Improved employee performance.
Run SAP ERP at Headquarters - Integrate to SAP Business One at Subsidiary Locations.
SAP Business One is the ideal business software for controlling large enterprise subsidiaries and divisions that already use an array of SAP business solutions. Trusted by over 55,000 companies in 150+ countries, SAP Business One streamlines key processes – from accounting and CRM to supply chain management and purchasing. A preconfigured integration package developed by SAP makes processing easier between SAP ERP and SAP Business One -- it integrates SAP Business One running in subsidiaries with SAP Business Suite software in headquarters’ location for data sharing.
While the enterprise headquarters runs SAP ERP, your subsidiary/franchise/divisional office/manufacturing site runs SAP Business One.
Data harmonization, financial consolidation, business process standardization, and supply chain optimization.
Pre-configured scenarios for master data, sales, purchasing, HQ reporting, and finance as well as customer-specific content.
Crystol Technologies is a distinguished SAP Service Provider, delivering high quality and cost-effective SAP Solutions. We offer Complete SAP Business One Services Across Various Industry Verticals. We are helping multinational organizations across a range of industries capitalize on the benefits of the two-tier ERP model. We empower companies of all sizes and industries run better from warehouse to storefront, mobile to cloud solutions.