5 Ways Construction Companies Can Control Complex Business and Enhance Growth with an ERP System
The construction industry is highly competitive and saturated, and to dominate the market would mean that companies will require efficient operations and the best resources.
Right from the aggressive tendering stage down to the final project billing, construction companies can face various issues. For one, there is the need to create their tenders under tight timelines while optimizing their budget and margins, and throughout the running of the project, they will have to monitor their labor, material and subcontractor costs closely. Disorder in these processes could cause companies to lose out in the tender bidding, or even manual processes can slow down the productivity of their operations. These implications are just the tip of the iceberg. If construction companies fail to track their costs accurately, they will be operating at a loss, especially when construction projects have a small margin by nature.
All is not lost. Construction companies can utilize an Enterprise Resource Planning (ERP) that targets the construction industry such as Synergix E1 ERP. Below are 5 ways in which Synergix ERP System can help you:
The way a construction company handles an ERP is all different. ERP system in a construction company would be at times accessed from multiple locations. Either from their offices or the various construction sites. In such cases, it is best if construction companies opt for a web-based ERP system which will give the users a real-time accessibility. This way the management would be able to keep themselves updated of all project status. The ability to extract out real-time information enable them to make better business decisions right on the spot. Hence improving business productivity and efficiency.
Making profits out of marginal gains is the main goal of a construction company. Thus, such companies need a solution that caters for these different cost factors. Management usually has difficulties tracking them accurately. Hence, choosing an ERP system that allows them to centralize all the information from a myriad of sources will ensure they can monitor tightly on their project budget and cost. This reduces the case of exceeding the project budget.
Subcontractors form an essential part of the whole construction process. With an ERP system that specifically catered for the construction industry, it can help the companies by providing them with a clear overview of the claiming and certification process when engaging a subcontractor. This will not only ensure that your project is running within a budget but it would also further avoid any expected delays.
A typical construction project requires multiple departments to work hand in hand. It will be paramount for management to be able to pull data from different stakeholders for analysis and charting out business directions. With the business intelligence module, reports can easily be created on an ad-hoc basis. From extracting data to creating tables in forms of graphs and charts certainly, helps in management analysis.
With the amount of urgent tasks that require everyone’s attention, it is likely that you will end up losing sight of the project’s progress. ERP system allows you to have a tighter monitoring on projects right from the tendering stage to the final project completion, including all other areas that come in between like variations in billing, managing labor and so on.
These are just 5 ways when construction companies can extract the goodness of ERP in their day to day processes. Synergix Technologies is a Singapore ERP company and is highly competent in providing ERP system for companies in the building and construction sector.