The Game-Changing Benefits Of ERP For Construction Companies
Construction is an essential service that relies heavily on efficient and intelligent planning. As a result, construction companies understand the importance of business management tools to optimize their staffing and resources management and ultimately ensure highly functional and profitable projects. This article will teach you the most effective way to gain a competitive advantage and achieve maximum project profitability with a software solution known as an ERP.
Unfortunately for several companies of all sizes in the industry, many lose their competitive advantage because they don’t use business management solutions like an ERP. The effective execution of construction projects relies heavily on strategic resource management and planning solutions, and the stats back it up.
- 72% of construction companies report that projects have taken longer than
- 46% of construction companies report that they’ve had projects
- 32% of construction companies report that they had projects cancelled that have not been
- 44% of construction companies request longer completion times because they can’t
reach client expectations.
- Over 50% of construction companies report one or more underperforming projects in a given
ERP To The Rescue
Despite the worrying stats, many construction companies thrive and continue to grow with each successful project by using an ERP. Therefore, enterprise Resource Planning is not only recommended but essential for construction companies of all sizes to remain competitive and profitable.
ERP refers to software that organizations use to manage their day-to-day business activities like accounting, procurement, project management, risk management and compliance, and supply chain operations.
In the construction industry, ERP is a game-changer for all aspects of project management, especially in three particular segments:
- Costing and Profitability – Companies can determine project profitability across all segments, locations, and project types and maximize ROI. This is achieved with real-time project costing across all categories and revenue
- Budgeting – ERP allows construction companies to budget accurately for all aspects of projects, including monthly, weekly, daily and hourly
- Time Management – One of the biggest threats to the success of a construction company is poor time management, particularly regarding sub-contractors. With ERP, this threat is mitigated with powerful time management and efficiency
How is ERP able to achieve this? Let’s find out by analyzing the benefits of ERP in the
Benefits Of ERP For Construction Companies
ERP is a game-changer for construction companies of all sizes. Here’s why.
Assimilate Data Effectively
Having all the necessary data together is essential for construction projects. It allows project managers to effectively manage financial and operational data, providing accurate and precise real-time information. Using ERP, companies can track all operational elements and address any deficiencies in the most effective way possible.
Plan And Analyze Optimally
The main reason for failed, delayed, and incomplete construction projects is the failure to plan and analyze data effectively. Accurate planning requires considering raw materials, staffing requirements, contract management, and every other aspect of the project. ERP facilitates ideal resource management by considering each element, including collateral expenses, making financial planning and analysis a breeze.
Streamline Your Data
To remain competitive, construction companies need to take on various projects, often simultaneously. While these are sometimes for the same client, they might also be for different
clients, but either way, there is a lot of data and information to be analyzed. Unfortunately, construction firms that don’t use ERP will often use various bits of software or even basic programs like Excel, which cannot interpret the bigger picture and streamline all the data. This wastes time and is also an ineffective way to plan and manage resources effectively.
Ensure Centralized & Efficient Systems
Project teams and managers need to receive and process vital information about a project from multiple internal and external sources. The analysis and interpretation of this information are essential to the decision-making process. An ERP solution can centralize all the available information and extract the most critical data bits as needed. This helps the entire team, especially the project manager, make the best possible decisions.
Estimate Costs Accurately
Successful bidding on projects is heavily reliant on accurate cost estimation. Since construction companies will be held to this bid in the contract but also needs to attract business with cost- effective proposals, the perfect balance between value and realism is required. It is virtually impossible to do this without the assistance of an ERP which can analyze all the factors and provide perfect cost estimations.
Division Of Processes
ERP software solutions can accurately define the separate business processes within a construction company and its various projects. The processes are split into modules, enabling effective risk management, compliance, stability and overall analyses of each module.
Construction ERP software will include marketing, contract and inventory management, project phasing, and financial management.
The benefits of an effective ERP solution for construction companies are apparent, and ultimately they will ensure that construction companies and teams achieve the following.
Save Money and Improve ROI
- Manage project finances effectively
- Keep an eye on project costs
- Meet deadlines
- Avoid wastage and overtime
Optimize Staffing Decisions
- Track workers on-site
- Track work rate and progress
- Determine the human resources needed
- Avoid overstaffing and understaffing of projects
ZCom Has The Perfect ERP Solution For Your Construction Business
ZCom Solutions is a multi-national company with more than 20 years of experience in solving problems and building solutions within various industries, including construction. Our clients, many of whom are Fortune 500 members, have benefitted substantially from our tailor-made software and technology solutions, helping them grow, thrive, and optimize their projects and processes.
ZCom uses Oracle NetSuite, the world’s number 1 Cloud Business Management Software Suite, as the ERP solution for construction companies. NetSuite ERP runs all of your critical back-office operations and financial business processes in the cloud—including accounting, inventory, supply chain and order management.
To find out more, contact us today for an obligation-free assessment or just a chat to find out more!