ERP software is typically categorized into tiers based on the size and complexity of the businesses they are designed to serve. Tier 1 ERP systems are built for large enterprises, often with global operations. These solutions, such as SAP S/4HANA, Oracle Cloud ERP, and Microsoft Dynamics 365 Finance (Enterprise), offer robust support for multi-language, multi-currency, and multi-GAAP requirements. They are highly scalable and customizable but come with high costs and long implementation timelines due to their complexity.

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Tier 2 ERP systems are aimed at mid-sized to upper mid-market companies, as well as divisions of large enterprises. These systems strike a balance between functionality and cost. They typically offer strong industry-specific features, flexibility, and moderate scalability, often including support for multi-entity and multi-site operations, though not at the same level as Tier 1. Examples include Infor CloudSuite Industrial (SyteLine), Epicor Kinetic, Microsoft Dynamics 365 Business Central, SAP Business ByDesign, and Acumatica.

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Tier 3 ERP systems cater to small businesses or the lower mid-market. They provide core business functionality such as accounting, inventory management, and basic manufacturing. These systems are generally quicker to deploy, more affordable, and often delivered as cloud-based or off-the-shelf solutions. However, they are limited in terms of scalability, customization, and international capabilities. Common examples include QuickBooks Enterprise, Zoho ERP, Odoo, and Xero with add-ons.

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In addition to these traditional tiers, many organizations—especially large ones—adopt a postmodern ERP or two-tier ERP strategy. In this approach, a Tier 1 system is implemented at the corporate level for centralized control, while more agile, cost-effective Tier 2 solutions are used at subsidiary or divisional levels to meet local operational needs. This allows enterprises to combine the strengths of both tiers in a cohesive architecture