Why ERP System is a Valuable Asset for construction-related companies?
Before, only large enterprises could afford an ERP (Enterprise Resource Planning). However, as our increasingly fast-paced and ever-changing world demands speed and efficiency – software automation is widely adopted by different businesses, including Small and Medium Enterprise.
Cost reduction and significant increase in productivity is experienced by businesses who acknowledged and implemented ERP Software for the whole operation of their company. But, what about those enterprises who have not decided on using an ERP System just yet?
In order to meet today’s market demands; an ERP Software for construction-related companies is necessary to accurately manage data and information, timely and consistently. For a successful project, construction industry needs a fully-integrated Project Management Software to consolidate and handle data.
Here’s why we strongly believe that an ERP System can be a valuable asset for your company:
• Transparency of Labor Attendance through Real Time Tracking
Resources availability is critical to a project’s success. It is then essential to utilize them efficiently. With a clear and detailed view of your resources capacities, an ERP System will allow effective resource management, thus enhancing your company’s efficiency. With biometric attendance and GPS location tracking, it’s easier to keep track, transfer and monitor workers’ timesheet. Through the use of ERP Software, you can eliminate paper cards and all cost associated with lesser time needed for attendance data verification.
• Boost Equipment Productivity
ERP System allows ease of control and monitor the usage of your own equipment and so as the equipment you’re renting from vendors/suppliers. By implementing an ERP System, it is fast and easy to transfer equipment between sites or cutting job down to save cost and easily monitor possible equipment failures before they turn out be lost production and repair cost through tracing the whereabouts of equipment at site.
• Fast & Efficient Project Delivery
In construction-related industries, thousands or millions of money are loss every time a project is delayed. A fully integrated ERP Software such as TaskHub ERP can effectively handle the requirements of any project-based industries. It offers real-time and clear visibility of project progress so you can monitor potential problems and ensure productivity in order to avoid delays. ERP System can serve to reduce the business risks that might otherwise be difficult to forecast beforehand and resolve in time. This speed-up project delivery and in return improves customer service and retention.
• Cost Reduction
One of the biggest challenges for any construction-related company is estimating cost of construction. Well-integrated ERP allow you to allocate cost on various projects wherein the management will be able to identify excess in cost or profitability. You can easily monitor and control budget or cut down excessive cost through comprehensive project costing report which list all the materials, labor, equipment, subcon cost and overhead cost. The use of an ERP will give the management peace of mind before the project is done. Cost reduction includes the labor cost (headcount reduction, inventory cost reduction, administrative reduction, etc.
• Cash Flow Management
Cash flow is the lifeblood of every business. Tracking the cash flow position for each project is important to ensure you are not funding hefty on the project. By implementing an ERP System and automating processes, it’s easier to control and increase your cash flow. Through data integration delivered by an ERP Software, you can monitor current and future cash flow for better insight of cash position.
• Increase Return on Investment (ROI)
Business is business! Every company, from small to the largest enterprises is keen on knowing that investing in any tools or equipment will yield good results. With proper management and by reducing project cycle time, cost reduction and with increased productivity – we know for sure that the ROI will increase, definitely.
Through ERP, you will be able to measure, stimulate and analyze data, profitability and your company’s capability for future demands. So you don’t rely on your guts, you can measure success with figures.
It’s undeniable; people will always be the most valuable asset in any form of business. But that does not mean that we will just overlook the benefits of emerging equipment such as ERP which in return improves the productivity and efficiency of our people. Proper ERP System implementation can tremendously improve your competitive position by driving business efficiency and not leaving decisions to gut feel.