In the market for a new ERP solution? You might be spending your time comparing ERP features, measuring one platform’s inventory management capabilities against another’s or contrasting production management tools.
But if you want a truly flexible ERP that you can start building on right away, this isn’t the right way to shop.
Instead, you need to be making decisions at the architectural level: Do you need a monolithic, best-in-breed, or composable ERP?
Once you’ve answered that question, it’s much easier to narrow down the options and settle on your final ERP solution.
This article breaks down the three primary ERP architectures and how they differ to help you understand which one is right for you. We also guide you through a simple self-assessment to determine whether you’d benefit from a composable ERP solution.
If you need to upgrade your ERP solution, you’re clearly already familiar with what these platforms do. But it never hurts to refresh — especially before we dive into the nitty-gritty architectural stuff below the surface.
Enterprise Resource Planning (ERP) systems help you automate and optimize business processes. They pull together every department (finance, supply chain, HR, inventory) for unified data and communication. As a result, you see higher productivity, reduced costs, and smarter decision-making.
ERPs include features like:
Every ERP is built on an architecture. This architecture is the underlying system design that affects how the data, integrations, and components are structured and how they interact. But not every ERP architecture is alike.
There are three primary architecture types that an ERP solution can have: monolithic, best-in-breed (sometimes called “postmodern”), and composable.
What it is: An ERP with a monolithic architecture is an all-in-one system where one vendor provides all modules on a single platform. (Examples include SAP, Oracle, and NetSuite.) Modules are functionally distinct, but technically connected — they share data, logic, and deployment.
Benefits and trade-offs: The idea is that communication is simplified, with a consistent, reliable performance and straightforward deployment. But it comes with several trade-offs, too. Monolithic ERPs are very limited with customizations and scaling. You’re required to use all of that one vendor’s modules. And if you want to move to something else, you have to completely rip-and-replace and start from the beginning with brand new vendors.
Who it’s best for: This type of ERP architecture may be a good fit for established enterprises with standardized processes; companies with long planning cycles that are okay not having the next best innovation; or highly regulated industries where the vendor has deep specialization.
What it is: With a best-in-breed architecture, you choose the best application for each core ERP function (finance, inventory, CRM, etc.) and connect them using integrations or middleware. This ERP approach is not a single product. Instead, you put together a connected ecosystem with the top tools available, with everything communicating via APIs or middleware.
Benefits and trade-offs: Ideally, a best-in-breed ERP lets you keep the tools your team likes, use the best tool for each job, and swap tools anytime. This kind of architecture can handle more complex workflows and is more flexible, scalable, and innovative. But it has drawbacks, too. Integrations are complicated and it’s hard to keep data consistent because there isn’t unified reporting. You also have a lot more vendors to manage, which can create drag on the user experience.
Who it’s best for: Best-in-breed ERP might work well for mid-market businesses with evolving workflows; teams with strong IT capabilities; or companies in search of tool flexibility over unified data.
What it is: A composable ERP architecture lets you keep your best-in-breed tools (ecommerce platforms, WMS, 3PLs, accounting systems) but connect them through a unified operational backend like Tailor. Tailor acts as the system of orchestration: It synchronizes data, enforces business logic, and coordinates workflows across every system. You can build on that foundation to add custom frontends, internal tools, and dashboards that meet your business needs.
Benefits and trade-offs: There’s no rip-and-replace necessary with composable ERP. Keep your current tools and simply compose them into a single system. Implementation happens in just weeks, and Tailor keeps your data unified as AI works across the stack. Keep in mind, however, you may need a mindset shift for a composable approach: Continuous improvement is a must, and with more vendors involved, more organizational ownership is necessary too.
Who it’s best for: A composable ERP solution is a good fit for businesses that have outgrown spreadsheets; companies that have tools they love, but need unified data; businesses that can’t afford 12-18 months of implementation; and teams that need custom interfaces.
There are plenty of myths floating around boardrooms and the internet about ERP solutions and architecture. Take a look at a few of the most common, and the reality you should know.
Is a composable ERP solution the best next step for your team? Read through these questions and answer yes or no to each one:
If you answered yes to more than half of these questions, your business is ready to seriously evaluate composable ERP.
Implementing a composable architecture could enable you to launch that wholesale channel that’s been on hold for 18 months. Or to open in three new markets this year instead of “maybe next year.” You’ve been ready for the next level, but your systems haven’t… until now.
Tailor can orchestrate your existing systems into a composable ERP that grows right along with your business. Keep the tools you love while adding the flexibility, AI capabilities, and unified data you need to grow faster. Book a demo to see how it works for yourself.
