The Two-tier ERP is a software technique embraced by multinational corporations that use Tier 1 ERPs to cater to unique needs for corporate finance and other key common processes and Tier 2 ERPs to cater to branches, subsidiaries, and smaller locations.
Tier 1 ERP systems are systems designed with subsidiaries or local offices for major global organizations — primarily Fortune 1000 companies. Tier 1 ERP is created to manage these firms’ complex systems that allow staff to simultaneously perform the same tasks. These systems are very complex to build, take a long time to implement, and have an initial high cost and a high overall ownership cost (TCO). According to Clash’s 2017 Titans report; Tier 1 ERP comprises : SAP, Oracle, Microsoft Dynamics, and Infor.
Why is Selecting An ERP Crucial?
If you are looking to select a Tier 1 ERP system, you need to plan for it properly. Although various criteria exist to help you pick the right software, every small business owner primarily needs to know if the program does what they need. They also need to assess if it is affordable and easy to implement without too much time, money and effort. The owner should also be conscious that optimizing the supply chain is typically a big part of ERP implementation. Thanks to its simplicity and scalability, Cloud ERP is available on a subscription basis and is the perfect choice for small business owners. Also, no additional IT infrastructure investments are needed.
Factors to Consider When Choosing an ERP System
1. ERP implementation partner selection criteria:
Your implementation partner will also be your ERP consultant. The ERP supplier will help you strategize, introduce, handle the transition, and maintain the system over its lifetime. Vision, commitment, and experience are several key requirements to be sought by an implementation partner.
· What are Your Implementation Partner’s Vision and strategy?
A supplier who is solely looking to win the bid may tell you their software can meet these needs. Still, a visionary supplier will ask you the relevant questions such as: Have you considered integrating your ERP system with carrier services directly? Do you use dock management to prepare your logistics partners best for receiving and dropping times?
Subsequent questions such as these can give the ERP vendor a picture of what your ERP program can achieve.
· How Trustworthy is Your Implementation Partner?
Confidence and communication are the foundation for all partnerships, so it is necessary to communicate your RFP process with each seller. Are the rates transparent? Have they been communicated and followed up promptly? Imagine the challenges you will face after paying the bill if you have problems with confidence and communication.
· Consider Case Studies and References
When collaborating with an ERP provider, experience is the biggest factor. Although Tier 1 ERP providers have a wide range of capabilities that are most likely standardized across industries, it is worth asking if they have certain expertise or show you some of their cases relevant to your business.
2. Evaluate the Vendor’s Implementation Approach and Post Go-live Support
Another significant factor is post-go-live support. Before choosing an ERP scheme, it’s best to be able to choose the correct ERP selection checklist earlier rather than later.
An ERP supplier can provide several support options.. With Tier 1 ERP suppliers, software licenses are virtually always supported in the first stage. Therefore, the first level of payment assistance is easier to compare.
3. Focus on Your Business Needs
Every business is unique. Therefore, to avoid problems with the Dynamics 365 implementation process’s compatibility, we advise each vendor to ask what its customization and integration policies are and what they mean when upgrades are due.
4. Key criteria for ERP software
Not every company can use ERP tools. So, find out whether your company really needs an ERP.
- Evaluation of the existing system
Take time to evaluate the various processes within the ERP framework. Review the present situation, make an ERP evaluation checklist, and expect possible improvements.
· Implementation plan
Plan training courses for various employee groups. Both buyers and sellers are affected by ERP. Before implementation, consider the views of your main customers and suppliers for the ERP selection process.
· Module selection
Users will distribute the modules and automate various processes gradually. But don’t forget the central objective of the ERP implementation during module selection.
· Company size
Your company size matters the most as you start to implement the ERP. So, ask your vendor what the most suitable option for you will be.
Select an ERP solution only after extensive and careful planning. We at DFSM offer free ERP consultation services to ensure you get the best solution for ERP and solutions for dynamics 365 ERP implementation.