ERP architecture is a critical decision for agribusinesses, influencing efficiency, flexibility, and long-term scalability. Many grain, animal feed, and ingredient manufacturing companies are still working to optimize their software to reflect real-life operational workflows. Until this happens, they often struggle to fully trust their data and gain accurate visibility, a challenge that continues to burden much of the industry.
The industry is also experiencing updates that are forcing many users to make decisions. For decades, Microsoft Great Plains has been a cornerstone for agribusiness ERP. With Great Plains being sunset, companies must evaluate their future approach to ERP architecture. SAP customers are also facing change as the company moves ECC users to S/4HANA, which is creating similar decisions for larger players in the industry.
In any industry, ERP systems typically cover core financials such as general ledger, accounts payable, accounts receivable, and cash management. They also include operational capabilities that vary by sector. In agribusiness, these might include contract management, inventory, and settlements for grain companies, or purchasing, inventory, manufacturing execution systems (MES), and order management for feed and ingredient manufacturers.
Think of ERP architecture options as a spectrum: at one end is a fully monolithic ERP, at the other is a fully postmodern or composable ERP, and in the middle sits a hybrid approach.
Monolithic ERP Architecture – The Simple End of the Spectrum
A monolithic ERP is delivered by a single vendor and covers both core financials and operational capabilities in one platform. These systems are simpler to implement, require minimal integration work, and are generally easier to maintain. The tradeoff is reduced flexibility, limited functionality in some areas, and a higher risk of vendor lock-in.
For smaller grain elevators, feed mills, and ingredient manufacturing operations with fewer than 100 employees, this approach often makes sense. The simplicity and predictability help keep costs low and avoid complex IT requirements.
Postmodern or Composable ERP Architecture – The Flexible End of the Spectrum
A postmodern ERP approach keeps the core financial ERP at the center but surrounds it with specialized operational applications for each business function. Each application is chosen for its strengths and integrated with the core system through APIs or middleware.
This model allows companies to mix and match the best available tools, adapt quickly to new requirements, and avoid being locked into a single vendor’s ecosystem. Examples include Microsoft Dynamics 365 (Business Central and Finance & Operations) and Oracle NetSuite, which are both well suited as the financial core in a composable ERP architecture due to their modular design and integration capabilities. A similar situation is unfolding for SAP customers, as SAP is in the process of migrating ECC users to S/4HANA. This move typically applies to larger agribusiness players and is also forcing companies to re-evaluate their ERP strategy.
Two major technology trends make the postmodern approach increasingly attractive:
- Decreasing software development costs mean solutions can be implemented in days or weeks instead of the months or years historically required, enabling rapid innovation and lower risk when testing new applications.
- Low-code and no-code platforms allow faster customization without heavy IT involvement, making it easier to tailor best-of-breed applications to unique business processes.
This approach is most common in larger agribusinesses, especially those that have grown through mergers and acquisitions and operate multiple grain, feed, and ingredient manufacturing facilities. It allows companies to retain specialized systems where needed while unifying financial data and reporting across the enterprise.
Hybrid ERP Architecture – The Middle of the Spectrum
A hybrid ERP approach blends elements of monolithic and composable models. In most cases, the majority of your ERP, including some operational areas, is handled by the core ERP system, with specialized applications sitting outside and easily integrating where they add the most value. This provides targeted best-of-breed capabilities without the full complexity of a composable architecture.
ERP Trends Influencing All Architectures
- Mobile ERP access allows users to quickly view key information such as daily production levels and customer orders while away from their desks, whether checking a grain bin, working in the mill, or traveling between sites.
- Voice interfaces powered by natural language processing (NLP) make data entry and system navigation faster and more intuitive in busy operational environments.
- Growing interconnectedness across the agribusiness supply chain means suppliers, customers, and logistics partners are sharing more operational data than ever. ERP architectures must be able to integrate and exchange this information seamlessly to keep operations aligned and responsive.
- Agentic capabilities use AI-powered agents that can not only analyze data but also take actions such as generating transactions, updating records, and triggering workflows automatically, reducing manual effort and speeding decision-making.
Choosing the Right Path
For agribusinesses in grain, animal feed, and ingredient manufacturing, the right ERP architecture often depends on size, operational complexity, and growth strategy. Smaller companies may lean toward monolithic systems, while larger, more diversified enterprises often find value in postmodern or hybrid approaches.
With Microsoft Great Plains and SAP ECC reaching end-of-life, now is the time to evaluate which architecture model will deliver both immediate operational benefits and the flexibility to grow. If you are exploring ERP options or want to discuss which approach might be the best fit for your business, reach out to us here or send me a note directly at pelsoci.david@captiospartners.co.
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