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Enterprise resource planning system or an ERP system is one of the top software solutions that can help construction businesses significantly. The system comes with many modules and ensures a robust solution in your organization and helping you manage all your departments; the system enables you to transform your organization to fit the digital age.

A good ERP software brings all your departments together from marketing, sales, accounting to HR. Thus, strengthening the connections between departments.

Below are some of the features of an ERP system

  • Accounting and Financial Management
  • Sales Management
  • Customer Relationship Management (CRM)
  • Human Resources Management Software (HRMS)
  • Material Requirements Planning (MRP) Software
  • Project and Costing Management Software
  • Inventory Management and Purchase Order System

Let’s have a look at how an ERP system can help you manage your construction business.

10 Benefits of ERP in the Construction Industry

1. Operation automation

From client handling, project management, cost estimations, staff management to procurement management, construction businesses always have so much to deal with, and this can get more and more stressful when you have a fast-growing company. 

When you have multiple construction projects going on and have many labour staff to manage, it’s challenging to keep up with all the moving pieces. Thus you will end up experiencing errors and mistakes. 

A sound ERP system can automate all your complex operations enabling you to manage your organization easier than ever before. From clients, staff, labours to suppliers, the system will handle all the operations on your behalf with more accuracy. Thus you will no longer have to do everything manually with pen and paper which take time.

2. Optimize project management

Project management is essential for any construction business. Without effective project management, your organization will lose money as well as clients. 

A small error in the construction or a delay in delivery reflects the company’s inability to provide a satisfactory service. This is a huge black mark for any brand. Yet it can be challenging to be on top of all the tasks, especially when you have a few projects going on simultaneously.

With an ERP system, you can streamline your project management in a great deal. The system will provide you with better visibility over your projects through automation. Thus, from identifying the right raw materials, selecting the right supplies, effective labour use, schedule management to contracts, the system will make project management simple for project managers. 

Additionally, it will also help you with cost controlling and budget allocations for projects helping you optimize your profits.  

3. Improve internal communication

Excellent communication is the key to project success in the construction industry. However, maintaining effective communication among departments is one of the common challenges often construction companies face. Disconnections between departments can slow down operations and business processors, which can affect project deadlines. 

An ERP system has inbuilt chat forums video capabilities for employees to communicate effectively. With this, you will able to improve internal communication of your organization in a way you never thought was possible. With the chat forum, the employees will be able to have group chats collaborating with each member involved in the project. Thus, everyone will be able to get updates and be a part of the conversation and receive valuable information without any delays.  

4. Mobile features

Everyone has a mobile phone. And many industries incorporate mobile devices in their operations to speed up their business processes. Now with an ERP system construction industry also can benefit from mobile devices in your business.

The system comes with a unique SMS alert feature. The feature enables sending bulk SMS to your customers or prospects for marketing purposes. Thus you could reach a vast number of people with a click of a button. 

 On the other hand, since the system can be accessed from anywhere at any time, employees will be able to update executives and the management with project updates instantly even from the project site. 

For example, employees will be able to take photos of the site and immediately update to the system so the management or the client can view the progress of the place from wherever they are.

ERP Software Construction Industry

5. Can work from anywhere anytime

One of the key benefits of ERP software is that the system enables you to access data from anywhere anytime. With this, your business will have the ability to keep your systems online 24/7, thus allowing your employees to obtain necessary materials from anywhere.

For example, you get the ability to access all the documents and details regarding a project right from your laptop or mobile phone regardless of where you are. This means you won’t have to carry massive files everywhere with you with photocopies of the document.

Plus, this will help your employee have more flexible work hours as well. As the system enables to access the system anytime anywhere, your employees will be able to get done even urgent work from home without having to spend long hours in the office.

6. Quick data transfer

Managing data is another enormous challenge every construction business face. Due to a large number of data, the businesses have to deal with; it can be quite tedious and confusing to organize all the data without losing any.

This gets more difficult; the bigger your organization gets in size. Such companies have to handle large loads of data from tenders, project details to multiple assignments. And spreadsheets and presentations aren’t always the most effective way to keep all these data organized.

An ERP software stores all your data in a centralized hub effectively, regardless of the size of the data load you have to deal with regularly. Thus it enables fast and secure data transfers between departments. 

The system will help you store data in a more organized manner while helping you find the right records within seconds.  

7. Efficiency in decision making

An ERP system centralized all the data and operations of your organization -thus providing a better view of situations before making decisions. The system gives you the ability to oversee all the details of the case, ensuring you nothing is overlooked during the decision-making process.

The system will help you extract all the essential details from different sources and provide the right criteria to make adjustments as required before fulfilling a request. 

An excellent example of this when making a purchase order for the required raw material. There are many parties involved in the process. Here the budget report should be submitted to the project manager based on the engineering team’s recommendation and the construction design. Then the purchasing manager creates the purchase order based on the design and send to the accounting department before getting the approval for the project. 

8. Help with marketing strategies

Acquiring new projects and new clients is every construction businesses ultimate end goal. Thus effective marketing strategies play a vital role in business success. 

An ERP software offers you in-depth data analytical tools which you can use to improve and optimize your marketing campaigns. 

The tools will help marketers thoroughly analyze details collected from different departments that can use for marketing strategy development.

For example, data collected from sales help you understand client behaviours and patterns which enable you to optimize your marketing campaigns to resonate with client mindset and win them over.   

9. Accurate cost and revenue estimations

Usually, construction companies undertake projects on a contractual basis with their clients. To acquire a project, companies have to bid on the project with their cost estimations. Here the company with the best design and best-proposed cost estimation will have the project depending on clients requirements.

An ERP software comes in handy when preparing cost estimations. It will help you accurately estimate costs for raw materials, design and labour. Plus it will correctly calculate overhead liabilities of projects that take many months to finish. Thus you will be able to provide your clients with an accurate cost estimation where the real cost does not deviate much from the estimated cost when carrying out the project.

10. Digital documentation

The system will help you store all your data digitally. This means you no longer will have to keep your estimations in one folder, projects proposals in one and client contracts in one. You won’t need spreadsheets presentations anymore. Plus, you will no longer have to fill forms, spreadsheets or collect data manually, which takes time.

With this, you will be able to update any data right to the system from any device that can use to access the internet. Thus you no longer will have to carry files to the project site.

The system also will help you organize your data effectively so you could access any record with a click of a button. The system also reduces chances of unauthorized access to information which anyone can do when you have all your data in files on file racks. 

Conclusion

In this digital world, construction businesses should hurry to adopt this latest technology that can take their business to the next level. The ERP software for construction can make operations go faster and smoother, cut down costs while reducing the manual workload.