The past few years have drastically transformed the business landscape. Companies had to quickly adapt to unexpected industry changes to thrive – or survive, at the bare minimum. Construction companies are not exempt from this.
According to a study, 78% of companies believe ERP is a critical aspect of their strategy, with construction companies as one of the verticals that implement ERP solutions to streamline operations and better monitor ongoing projects.
But, what exactly is ERP technology and why are many construction companies racing to adopt it? If you are searching for ways to adopt ERP and step up in the changing landscape, you’ve come to the right place for valuable information and insights.
7 Benefits of Cloud ERP for Your Construction Business
An enterprise resource planning (ERP) system is any software that helps in managing information across organizations. A third-party provider handles the cloud-based software, and authorized users can access project information anytime and anywhere.
ERP is beneficial in monitoring construction projects, streamlining processes, keeping tabs on financials, and relaying and reporting information. But these are just a few of its advantages. Keep reading to learn more about how the technology can benefit your company.
1. Everyone will be on the same page
Accuracy is essential in the construction industry. Contractors could entail significant losses if they failed to execute their plan carefully. Improper allocation of materials, untimely project completions, or deviations from the scheduled workflow will result in financial burdens and delays.
These threats highlight the importance of project management. Here, ERP helps in reporting and analyzing daily field reports. The technology offers real-time information that is accessible at all times.
Besides offering easy access to necessary information, most ERP software has a simple user interface and features customized reports. Its speed and reliability enable managers to make data-driven decisions.
Most importantly, data is accessible from anywhere: at home, at the office, or in the field. Ultimately, accuracy in various aspects of project management gives stakeholders a holistic understanding of their operations. If you want to identify gaps in your business and determine critical areas of competence, the cloud-based system is perfect for you.
2. Data is secure and accessible
ERP is more secure than on-premise systems. Data is collected from the entire organization and integrated into a central location. This makes it easier to share information between departments and conduct critical forecasting.
But with its centralization, couldn’t this technology be harmful to your enterprise? Well, the great thing about ERP is its increased accessibility does not affect security at all!
An ERP system secures your data with user-level permissions, HTTPS connection, and best practices in authentication. Some experts would even say that its security exceeds that of legacy standalone solutions.
3. There is no time wasted on projects
One of the benefits of construction cloud ERP solutions is a streamlined document management system. Unlike on-premise ERP, which is costly and takes more time to deploy, cloud-based ERP is easier to implement and maintain. Its streamlined management powers workforce relationships. It improves supplier collaborations, fosters timely project completions, and avoids delivery penalties.
As such, ERP software boosts productivity. It leverages automation to generate orders, track shipments, and monitor inventory. By automating manual, repetitive, and mundane tasks, your workforce can spend more time expanding your business. A cloud-based system can minimize human errors and provide accurate data to promote organizational efficiency and productivity.
4. It offers more control over materials
Supply chains are increasing in volatility. The good news is cloud ERP systems enable a steady supply of goods to cope with rapid and unpredictable changes in logistical operations. The software provides real-time data to all stakeholders, including inventory. By communicating remaining stock, subcontractors or vendors can have an estimate of how much more material your company will need.
This end-to-end communication between your project management team and supplier ensures your projects are on track. It promotes job costing and helps track your employees’ progress, resulting in the accurate management of your supply chain.
5. It helps you stay within budget
ERP systems run on a single platform, helping reduce operational costs by ensuring the interoperability of all departments. Thus, replacing in-house systems can save you from extensive IT costs. ERP lowers expenses by eliminating support fees, software licenses, and administration costs. Cloud-based technology can also manage your construction firm’s accounting and financial aspects. It can budget contracts, handle revenue, calculate financial statements, draft a general ledger, cost raw materials, and create invoices.
The software can streamline financial operations and monitor incoming or outgoing funds. It is integrated into other processes of your business, as well. With ERP, you can improve your financial visibility and narrow down jobs, expenses, or assets. Moreover, you can customize its features according to your location, currency, and tax regulations.
6. Your ROI increases
By controlling your expenditures, you can increase your return on investment. ERP allows you to track your expenditures and budget. It gives you information on job costs, summarizes the progress of your projects, calculates contract billings, and notifies you of issues or updates.
Additionally, it improves ROI by working towards efficiency. It reduces human errors and reports important information about your business, including cost overruns, cashflows, and milestone payments. With a real-time integrated view of the company, downtime is limited.
7. Stakeholders are happier
ERP systems increase stakeholders’ satisfaction. The technology integrates your payroll, inventory, and service management. If you choose the right software, it can be a dynamic tool that channels your operational data into a single location. You can significantly reduce inefficiency and improve account management for your suppliers, clients, and employees.
Grow Your Business
ERP enhances the project planning process. It minimizes time and effort by identifying a cost-effective way to use resources. With a properly integrated resource strategy, you can better control and grow your construction business.
ERP for construction allows you to work within a single-sourced information model in real-time. Scale up your firm and enhance your ROI by choosing a reliable cloud-based technology provider.
You can best achieve success with Yondu. Yondu is Acumatica’s partner in the Philippines. Acumatica ERP has a Construction Management module that is integrated into its system. Apart from Acumatica, Yondu also develops customized construction management software that caters to your business model and process.
Schedule a consultation with our ERP experts to leverage the many benefits of enterprise resource planning.