--- title: What Is The Best ERP Model for Large Enterprise Subsidiaries? description: Sometimes subsidiaries of large enterprises shouldn't use the same ERP system as their headquarters. Here's why. image: https://accountingmicro.com/hubfs/blog-files/ERP-model-subsidiaries-150x133.jpg --- [Sales](mailto:sales@accountingmicro.com) | [Support](https://www.accountingmicro.com/technical-support) - [Software](https://accountingmicro.com/sap-solutions) [SAP Business ByDesign](https://accountingmicro.com/sap-business-bydesign) [SAP Business One](https://accountingmicro.com/sap-business-one-software) [SAP Analytics Cloud](https://accountingmicro.com/sap-analytics-cloud) - [Industries](https://accountingmicro.com/industry-solutions) [Non-Profit Organizations](https://accountingmicro.com/non-profit-organizations) [Professional Services](https://accountingmicro.com/professional-services) [Manufacturing](https://accountingmicro.com/manufacturing) - [Services](https://accountingmicro.com/services) [Implementation](https://accountingmicro.com/erp-implementation) [Custom Software Development](https://accountingmicro.com/erp-custom-development) [Integration Services](https://accountingmicro.com/boomi) [Support](https://accountingmicro.com/technical-support) - [Company](https://accountingmicro.com/company) [Contact Us](https://accountingmicro.com/contact-us) - [Blog](https://accountingmicro.com/blog) [call us (888)806-0956](tel:(888)%20806-0956) - [Software](https://accountingmicro.com/sap-solutions) - [SAP Business ByDesign](https://accountingmicro.com/sap-business-bydesign) - [SAP Business One](https://accountingmicro.com/sap-business-one-software) - [SAP Analytics Cloud](https://accountingmicro.com/sap-analytics-cloud) - [Industries](https://accountingmicro.com/industry-solutions) - [Non-Profit Organizations](https://accountingmicro.com/non-profit-organizations) - [Professional Services](https://accountingmicro.com/professional-services) - [Manufacturing](https://accountingmicro.com/manufacturing) - [Services](https://accountingmicro.com/services) - [Implementation](https://accountingmicro.com/erp-implementation) - [Custom Software Development](https://accountingmicro.com/erp-custom-development) - [Integration Services](https://accountingmicro.com/boomi) - [Support](https://accountingmicro.com/technical-support) - [Company](https://accountingmicro.com/company) - [Contact Us](https://accountingmicro.com/contact-us) - [Blog](https://accountingmicro.com/blog) ##  Insights Subscribe to Our blog Blogs by  Topic:  [Operations Improvement](https://www.accountingmicro.com/blog/topic/operations-improvement)    [Supply Chain/ Procurement Trends](https://www.accountingmicro.com/blog/topic/supply-chain-procurement-trends) [Cloud/ SaaS TrendsTrends](https://www.accountingmicro.com/blog/topic/cloud-saas-trends) [Analytics and Business Intelligence](https://www.accountingmicro.com/blog/topic/analytics-business-intelligence) # What Is The Best ERP Model for Large Enterprise Subsidiaries? January 3, 2017BY AMS Editor ![Best ERP Model](https://accountingmicro.com/hs-fs/hubfs/blog-files/ERP-model-subsidiaries-150x133.jpg?width=195&name=ERP-model-subsidiaries-150x133.jpg)Sometimes it doesn’t make sense for subsidiaries of large enterprises to implement the same ERP system as headquarters. Some reasons include: 1. **IT resources and budget available** at the subsidiary are significantly less than what it would take to deploy and support a corporate ERP system at small subsidiaries. 2. **As new subsidiaries are added,** the window of time required for implementation is a lot less than what a HQ ERP system would take. 3. **The subsidiaries need systems** to drive standards adoption, while the HQ systems are designed to support complex business scenarios and one-off customization. Adopting a different ERP system from HQ is called a “two-tier ERP model” and can work especially well when both ERP systems come from the same vendor. This is occurring a lot with **[SAP Business ByDesign](https://www.accountingmicro.com/sap-business-bydesign),** so implementations where the SaaS (cloud-based software) nature of the system makes it very attractive. Companies like SAFECHEM, a subsidiary of The Dow Chemical Company, are a good example of the two-tier ERP model where limited budget and tight deadlines make the two-tier model and SAP Business ByDesign a perfect fit. Regardless of which ERP system you currently use or plan on using, thinking about the different needs of subsidiaries and HQ is a smart move. Going through an **[ERP software selection and evaluation](https://www.accountingmicro.com/it-services/software-selection.html)** process is not easy, so take your time and consider not only the functionality, but also the requirements of the different parts of the organization. **Want to learn more about finding the best ERP solution for your business? 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