What Are The Key Benefits Of ERP Software In The Construction Industry?

construction ERP

If you have been engaged in the construction industry for a considerable period of time, you would be very well aware of the pressures surrounding a tight budget and a fixed deadline. Yet there may be unexpected circumstances suddenly arising, disturbance in established plans requiring workers to reschedule things with new margins for the project. This may put efficiency at risk. This is why construction companies need ERP software so that their projects get backed on track.

Enterprise Resource Planning (ERP) software or system is a powerful solution for providing deep analytics based on data obtained out of different construction processes, like accounting, financial, management, contractor management, equipment, inventory, project management, vendor management, bid management, human capital management, customers relationship management (CRM), scheduling, submittals, asset management, and more.

With ERP software, a construction company can integrate its disparate software systems into a single comprehensive solution that helps construction managers effectively manage the complete life-cycle of a project. These software systems include:

  • CRM
  • Cost estimation
  • Bid management
  • Contract & Purchase Order (PO) Management
  • Project Scheduling or rescheduling
  • Inventory management
  • Facility and equipment management
  • Reporting
  • Document and workflow management =
  • Productivity and/or performance monitoring
  • HRM and payroll processing

Connecting these systems as different modules in an ERP will prove to be beneficial for a construction company. This will help it align improper accounting, scheduling, and document management that keep on hindering a construction company’s projects and growth.  Improper management also trigger unexpected situations which arise because of having non-integrate technologies. Typically without an ERP system, gaps exist between different systems, whereas their integration is critical for running operations smoothly.

Also, an ERP can be provided with an additional protection-layer and the limited access to valuable business data & the information. For this, developers can rely on custom ERP security protocols like Role-based Access Control, user provisioning, electronic identities management, real-time monitoring, audit trails, firewalls, and network encryptions.

Construction managers would be able to take more vital decisions, especially during the time of distress with the help of customization dashboard having integrated data visualization and data analytics features.

Today, there are a number of ready-made construction ERP systems available in the market, but not all of them will suit all construction businesses. Many businesses would certainly need customization to meet process-specific requirements.

A construction company, without proper implementation and customization of an ERP system, will certainly have a harder time in managing all its processes and face unwanted situation causing losses.

 

Author: admin

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