4 Ways Construction Companies Use ERP to Improve Job Site Efficiency
Improving Job Site Efficiency
In recent years, major construction companies across the world have begun implementing a new way to manage their critical resources: Enterprise Resource Planning Systems (ERPs).
ERP software combines different software systems into a single all-inclusive solution, thus providing construction companies with the tools that are needed to successfully manage the entire lifecycle of a project, from start to finish.
ERPs have proven to be a highly effective way to manage the workforce, finances, equipment, supplies, inventory, facilities, human resources, payroll processing, and various other vital elements of the organization.
Because ERPs serve as a comprehensive management tool, they effectively improve the productivity and success of the construction companies that utilize this management system.
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Let’s dive deeper into four of the most significant benefits that ERPs for construction companies provide and how those advantages effectively enhance job site efficiency.
Equip Managers and Crews with Powerful Tools
As a contractor, you know that there’s no such thing as too many for you to use to make juggling the many jobs you’re tasked with a little easier; in fact, too few resources are compliant that many contractors have.
If you’re looking for another tool that you can add to your project management toolbox, ERP software is definitely it. Why? – Because it provides an abundance of elements that are specifically intended to simplify the management of construction projects.
Some of the most notable features of ERP software include:
- Expenditure management. Balancing the budget and making sure that all expenses are accounted for can be tricky, but with ERP software, managing expenditures is a lot easier. With this software, you can easily oversee the financial aspect of your business, such as payroll and expenses paid.
- Bid management. With utterly integrated customer relationship management (CRM), ERP lets you keep tabs on the historical data that pertains to your customers.
- Performance assessment. With the intricate metrics that ERP software offers, you’ll receive thorough project performance assessments.
- Automation. ERP software automates the project management process so you can concentrate on improving performance and results.
- Asset management. You’ll be able to keep better and more accurate track of profitability, thanks to the asset management and margin control tools that ERP software offers.
With ERP, you’ll be able to take advantage of all of these tools whenever you need them. The data this software provides can be accessed via a desktop, tablet, or mobile device, so no matter where you are, all aspects of your projects will be visible.
Project Management and Tracking
Sure, there are software applications that can take care of the vital elements of your construction projects, such as estimates, schedules, and risk management. However, it’s likely that these software applications aren’t integrated, which means that you have to play the middleman to ensure communication.
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With so much on your plate and so much to keep track of, oversights can happen. Just one mistake and an entire project can be thrown off.
ERP helps to minimize errors by ensuring effective communication between every component of your construction projects. This software takes the guesswork out of project management and simplifies the entire process by tracking all elements and ensuring that each one is in-line with the other.
With ERP, you’ll have a single system that will link critical players together; accounting, vendors, schedulers, estimators, etc. Better tracking allows for better planning, which leads to greater efficiency and more success.
Implementing and maintaining an ERP can be a big undertaking for a construction company, and you will benefit from our JD Edwards Implementation Services and JD Edwards Managed Services to integrate and maintain your entire system together to work harder for you!
Inventory management is a crucial component of your construction business, as it ensures that you have access to the tools and supplies that are needed to get a project done. But, inventory management is a complex process, and getting it right can be challenging.
ERP systems are a viable solution for your inventory management needs. This software simplifies the process of organizing the number of items you have in your inventory. It compiles categories, titles, and identification of your list so you can keep better track of what you have in stock.
You’ll be able to assess the number of tools and supplies you have and reorder when levels are getting low, which minimizes the risk of not having the products you need when you need them. It also lets you have better control over surplus inventory and the turnover rate of the products you keep in stock.
Thanks to the accurate inventory data that ERP software provides, you’ll not only have better control over your inventory, but you’ll also have better control over your operations, finances, and logistics; and you’ll have this control from a single system that can be accessed anywhere, thus improving your efficiency.
Closely Manage Finances
Lastly, ERP can help to manage the financial end of your construction business. This software monitors revenue keeps track of your financial records and receipts and even develops ledgers to stay current with the profitability of individual projects and your construction business, as a whole.
Cost management is vital for your success, and ERP software makes managing your finances a much simpler task. With this software, you can develop profit and loss statements and keep track of the profitability of each project.
In short, it helps keep your projects on-budget, which will have a significant impact on your overall success.
Improve Your Construction Projects with an ERP
If you’re looking to improve efficiency, increase profitability, and expand the overall success of your construction company, you’ll definitely want to integrate an ERP into your organization.
Thanks to all of the benefits that this software provides, project management – and the management of your entire organization – will be a lot more efficient, which will ultimately benefit your success.
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