The last decade of Indian construction industry contributed 11% to the Indian GDP and the second highest inflow of money to the Government after service sector, again belong to this mighty industry.
Great things come with great responsibilities - Meeting expectation, delivering quality projects, assuring right information flow, setting up a refined process etc are all the factors that differentiate a good and not so good construction companies.
This continuous improvement process can be easily done when you find right ERP that suits your company and process flow.
Here are the 5 benefits of ERP for the construction industry.
Collecting all your tender details or financial management in an excel and analyzing the data with PowerPoint presentations are not adding value to the business. Instead, a construction ERP will help you with dynamic dashboards and reports of your data.
It will be able to show you where you went wrong, what we do repeatedly with no outcome and also what costs you. Technically , they call it as enquiry tracker, lost bid analysis, activity cost analysis and so on.
Getting reports on 360 degree view helps to take better decisions. This is only possible by the centralized approach provided by the ERP. For example, You want to look out for an item that is costing you in the billing section and the price of the material is handled in material section. Without an ERP , the correlation of the above two tasks is a pain point consuming time and energy.
Avoiding financial crisis
In these scenarios, the construction ERP would be a good bet.
Often , construction industry deal with “n” no of tenders supporting with Demand draft or Bank Guarantee. Some of the bidding make it out with flying colors where others don’t. In the case of losing tenders, the DD submitted will forgotten long in minds of construction companies as they deal with other priority tasks-And, there goes your hard earned money in a dead lock.
Time is Gold
Most ERP has a reminder tool in the Tender module a that will keep a eye on the DD‘s and Bank guarantees that have been submitted.
Let us take real life example here, It takes 2 months of Man hour to complete a floor as per your plan, but the floor is being completed only by 5 months. What went wrong?? You can never be sure to tell as you do not have any facts supporting you.
With ERP, Scheduling and Planning is effective and the deviations can be taken care right at the moment you are aware of that.
It not only saves time and also not just the money - IT SAVES YOUR PROMISE.
Actual VS Plannedn
Is there a way of finding out the actual vs. planned without ERP?
JCR - Job cost report helps in finding out the difference between Planned Vs Actual. However the frequency of this report being generated is different from ERP to ERP. For example, in CIMS, JCR is generated on demand basis while industry experts suggest that reviewing JCR monthly once is effective.
These are aimed at making a quicker management decisions, increasing efficiency and decreasing overheads.
The benefits of the ERP to a construction industry are much more than we discussed. To unlock the more benefits click here