Two-Tier ERP: A Practical and Profitable Strategy

Business leaders across industries are challenging conventional wisdom that preaches business-wide, single-solution enterprise resource planning (ERP) standardization. They’re recognizing that to be innovative and progressive, divisions and subsidiaries within large organizations require a blend of flexibility and power from their ERP solutions that corporate-wide systems just can’t provide.

Two-tier ERP: Play to your strengths
Our two-tier ERP strategy is rooted in a common sense, practical approach to IT planning and governance: Use the right solution for the right situation.

Instead of force-fitting a corporate-wide ERP system throughout the entire enterprise, divisions or subsidiaries can capitalize on nimble architectures available in modern systems like Microsoft
Dynamics AX.

In this model, divisional leaders get the flexible and powerful solution they need and tight business integration with their corporate or administrative ERP system.

Two-tier ERP in action
When is two-tier ERP a viable option? When a division or subsidiary has a business model or specific needs that differ from the broader corporation. In those cases, a two-tier ERP approach lets leaders launch the right solution for their needs and their industry, so they can adapt, respond, and drive profitable change for their business.

Retail
Retailers have to move fast, and their approaches to managing core business elements like foundational product data can vary greatly. And corporate-wide ERP systems can’t adjust to the speed of retail.
In a two-tier ERP model, retailers can launch:

• Targeted and tailored inventory solutions that adapt across lines and departments and unify inventory management across channels.
• Focused reporting solutions that predict customer demand and help better plan and manage inventory.
• Targeted point-of-sale (POS) or e-commerce solutions or a single, integrated solution that unifies the customer experience across channels.

Manufacturing

The increasingly complex world of global manufacturing and fluctuating customer demand requires an ERP system that can adapt and lead profitable change. Too often, corporate-wide ERP systems just can’t keep up.

In a two-tier ERP model, manufacturers can launch:

• Tailored inventory solutions that adapt to how raw materials and finished products flow in and out of each business.
• Integrated logistics solutions that unite each manufacturer with its unique set of suppliers, partners, distributors, and customers.
• Targeted reporting suites that roll information up the way division or subsidiary leaders need to both run the business and report to headquarters.

Distribution

Distributors need complete understanding of their customers for accurate business planning and to ensure they’re focusing on customers that drive real revenue to the bottom line. Most corporate-wide ERP systems simply don’t have the targeted functionality or flexibility a distributor needs.

In a two-tier ERP model, distributors can launch:

• Customer collaboration solutions that consistently balance supply and demand.
• Customized supplier networks to make sure supply chains are running at peak efficiency.
• Focused reporting solutions to identify bottlenecks and drive efficiency throughout the business.

Hear from our customers

90412 employees
Software publishing

"Our implementation of Microsoft Dynamics AX 2012 for the Finance Operations team proves that a two-tier ERP strategy can deliver a standardized solution that helps companies generate valuable process efficiencies and enable rapid innovation."
Hal Howard
Corporate Vice President of Microsoft Dynamics ERP Research and Development, Microsoft

58000 employees
Wholesale and distribution

“With Microsoft Dynamics AX, we can integrate new businesses into the
Group practically at the touch of a button. Industry-specific characteristics can
be easily implemented.”

Bernd Herrmann
Managing Director, Würth Group