Managing processes sounds good in theory until a company recognizes the need to start using multiple very complex business solutions to manage central and satellite locations. Large businesses often have more than one workflow, multiple products, and some even produce separate parts, later combined into one whole.
How could one ERP system handle all of that? The answer is simple. A two-tiered ERP strategy, aligning two ERP solutions.
What is a 2-tier ERP?
If a business operates globally with a dozen different disconnected ERPs spread around the world on a local level, information is bound to be lost. Not to mention, there is no possibility for real-time reporting on a larger scale.
This is where a 2-tier ERP comes in. Lighter and initially meant for small or medium size enterprises, the technology behind a tier-2 ERP allows large enterprises to connect their subsidiaries to their headquarter tier-1 ERP. These larger solutions usually also fit more complex production sites, which typically have higher requirements to their business processes. On the other hand, smaller divisions and subsidiaries often need a software fit for their simpler needs, that communicates seamlessly with their head office, and even sister companies.
How Does a 2-tier ERP work?
It is natural for your business headquarters to run on a highly-customizable and resource-intensive Tier 1 ERP system, which allows management and the C-suite to have a wider view of subsidiaries and make educated decisions based on global data reports.
In the meantime, satellite locations in a global company are more likely to use less resource-heavy Tier 2 ERP systems and use them to manage day-to-day activities, planning and processes. Each subsidiary has its own procurement, manufacturing, sales, finance, and warehouse processes. Service orders, plant maintenance or projects might also join the initial scope.
S/4HANA Public Cloud benefits as a 2-tier ERP
Having a tier-2 ERP like SAP S/4HANA Public Cloud in satellite location can be beneficial for many reasons, some of which are specific to different businesses.
- Saves cost. A tier 2 ERP solution requires fewer IT resources to manage than a tier 1. Combining this with the power of the cloud eliminates the need for a large IT department.
- Improves process handling. 2 tier strategies bring automation back to the table thanks to end-to-end handling of processes within one single software, giving more visibility to the management, and empowering every key user on more important tasks.
- Industry-specific processes. If some satellites have specific processes that don’t reflect anywhere else in a company, a 2-Tier solution will be able to adapt thanks to integration tools like SAP BTP.
- Fulfills Local Requirements. If a satellite operates in a country with a very different law and language than the company's headquarters, then the region's legal requirements might be different. A Tier 2 solution deployed by a partner knowing both your operation and local exigences, can accommodate the differences and adjust without changing the process for other subsidiaries.
- Always on top of the latest innovation. As soon as SAP deploys a new implementation, clients of S/4HANA Public Cloud immediately get access to the newest innovation.
What else Does S/4HANA Public Cloud Offer?
SAP S/4HANA Public Cloud provides a complete cloud-based, complete ERP solution covering finance, sales and distribution, procurement, production extended warehouse management, quality management, service orders projects and many more functionality.
With the help of S/4HANA Public Cloud, businesses can adapt to changes at light speed, manage both internal and external resources quickly and build predictive data models. S/4HANA Public Cloud could be used for more than just resource planning. It can improve almost any aspect of a business through data analysis.
Regardless of whether you are looking to optimize your venture's internal or external processes, S/4HANA Public Cloud can do so much more. Combining multiple ERPs, and providing real-time analytics is just the surface of what this could do for your business.
Reach out today to premier SAP implementation specialists like be one solutions, who can help to develop a two-tier strategy with SAP S/4HANA Public Cloud for all your company’s complex needs.
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