When to switch to a Construction ERP?

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A key question for all construction enterprises!

Traditionally, the construction industry encountered enough difficulties in acquiring and sustaining projects on schedule, within budget, and under the specified safety and quality aspects. Construction industries are the major contributors to the economy; nevertheless, they are considered to be the most disintegrated and inefficient industry spread across the world. In the recent trend, construction companies are venturing into adopting an enterprise solution to manage their business operations effectively and with profitability. The industry has embarked on Construction ERP solutions to overcome their operational challenges, meet the market demands, and manage huge and sensitive information.

Most organizations are adopting an ERP solution for managing their operations and key functions of their business. Implementing an ERP solution is a timely and critical decision. As a huge investment and an enormous effort is required, decision to implement an ERP needs to be scrutinized in detail to become successful. Construction companies need to analyze their need and the right time to go for an ERP solution. In one way, you can say to bring in efficiency and profitability. Nevertheless, there are other factors affecting the business strategy.

Given this fact, choosing the best ERP solution for construction that caters to all your business needs is highly challenging. This requires utmost care and diligence.

Let us outline those performance indicators that you need to leverage to enhance business efficiency and increase profits. The article also describes those advantages that you stand to gain using CIMS ERP.

Integrating Financial Information

Financial information is all about set of revenues, sales, costs, and expenditures; and is essential for strategic decision-making. The various units or departments in a construction business contribute to the main revenue.

Financial accounting deals with General Ledgers, Receivables & Payables, Reconciliation, Work Order Certifications, Stock Management, Project Plan, Ageing Analysis, MIS, Letter of Credit, Bank Guarantee, Voucher Controls-Day, Month, and Fin. Year management, Opening Balance Import, Taxations, Account transfer and so on. When you find the need to integrate all such independent units to establish the profitability, then, it is time for you to look into an ERP, which integrates all financial unit with General Ledger, Inventory, and Business Planning providing wide-spread visibility.

CIMS ERP finance module supports all forms of financial data and helps to generate reports such as Balance Sheet/Project-specific Balance Sheet, Trial Balance/Project-specific Trial Balance, Profit and Loss Account/Project-specific Profit and Loss Account, Account Books, General Ledger and multiple ledgers, Stock Report, Ageing Analysis-Debtors/Creditors, MIS Reports, Cash Flow Analysis, Fund Flow Analysis, Ratio Analysis, and so on.

The Finance module is designed to automate all key financial aspects of payments, create financial reports and manage assets and accounting operations across organizations. It allows prompt and reliable access to financial data to help strengthen the organizational financial control. Provides high visibility on the budget and accountability across the organization.

CIMS Finance module is configured based on the Pacioli’s technical innovation, which is known as “Double-entry”. The fundamental principle being: "debit and credit should be balanced". On any irregularities, close scrutiny helps reveal any errors. The system facilitates preparation of financial reports directly from accounts.

Integrating Internal Merchandise Shipping

Keeping track of internal orders in the organization or a construction site is in itself a challenge. The effort contributes to verifying the availability of materials, assessing the need, ordering, shipping to the site, and invoicing. Extensive communication and coordination is required amongst these units or departments. When you sense chaos in this system of communication and coordination, an integrated, secure, and reliable automated system becomes the need of the hour.

Integrating all internal merchandise into CIMS is to ensure all the requirements accumulated across locations are satisfied and completed as against the set organizational standards. This entails coordinating all supply chain management, stores, purchase, costing, taxation, stock transfer, stock updates, quotation process and rate analysis, procurement and resource management, material requisition based on the design and planning departments.

The system processes reports such as Vendor Detail List, Indent Details, Enquiries, Quotations, Purchase Order, Store Receipt Note, Purchase Invoice, Payment Authentication, Budget Allocations, Taxations, Stock Report (such as updated stock, stock-as-on date, Periodic Stock). Facilitates managing of multiple time-sensitive projects as against the planning and budgeting. CIMS is configured to fast-paced and demanding environment including suppliers, internal departments, and store location staffs so as to ensure appropriate levels of stock at the right store, at the right time and in the right quantities. The system helps to accurately forecast trends, plan stock levels and monitor performance.

Standardize Processes

Every organization need to review their productivity and efficiency at a certain frequency. If there is drastic reduction in the productivity, then, it is a trigger to revisit your process that establishes your execution model. Processes determine the productivity and efficiency in every organization. A massive construction business deals with several activities in their various units. It is not humanly possible to manage them without an automated system or a well-defined process in place. Seamlessly integrate the entire business operation to witness enhanced productivity, time and cost efficiency, adopting to a secure, process-oriented approach using CIMS ERP.

The construction business requires extensive standardization at all levels. End-user requirements and societal demands as well, can be served better by implementing complete solutions rather than independent ones. The construction industry is widened by the life-cycle concept. Facility management has gained momentum in the construction process, as it has been incorporated into the standards.

CIMS ERP provides an integrated view of the construction business processes in real-time, using pre-designed, pre-developed database management system. The system tracks business resources such as planning, material management, cash flow, and sales, purchase, inventory, employee management and payroll. The system facilitates sharing of data across all applications (human resource, purchase, sales, marketing, and accounts). It facilitates information flow between all business functions, and manages connections to commitments.

Process functions include rate enquiries, interlinking activities between new tender and tender history, revised working for tenders, site investigation analysis, enquiries to service providers/suppliers without procurement cycle, fetching rates from the past to enhance pricing and margins and facilitate strategic negotiation.

This enables to effectively process pending business enquiries, update enquiry status, tenders, bids with enclosures, contracts, acceptance & amendments, site investigation analysis, and tender comparisons.

Standardize HR Information

Human resource for any organization is the driving factor. Managing them is vital for the success of any organization. Given the construction industry, huge manpower is involved in the construction sites as well in the back office. Interaction amongst manpower from both the construction site and the back office without chaos is highly challenging. A simple unified and efficient tracking system is required to utilize the manpower effectively. An ERP provides the convenience of integrating and monitoring all HR functions within one single system.

CIMS ERP is designed to manage huge manpower resources and track employer investment on workforce. The system enables organizations to effectively manage the employee information from recruitment through the payroll and overall skill development.

CIMS HR module facilitates recruitment, hiring, manage employee data, leave administration, employee welfare, loan, payroll, training, development, and appraisals, promotions, attendance, shift management, staff TDS, and income tax.


Construction ERP software are noted for their secure reliable and integrated approach to data. CIMS ERP does good justice to this; featuring a secured environment in an integrated model allowing role-based access for only authorized personnel. CIMS ERP also gives room for scalability facilitating enhancements based on market demands.

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