Enterprise resource planning (ERP) software is an amazing tool for companies of all sizes in all industries, and construction firms are no exception. These powerful platforms can help construction firms manage business processes, better understand their finances, and automate some aspects of their business to maximize efficiency. Read on to find out how this one software tool can accomplish all of those goals and more.
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What Is ERP Software?
ERP software for construction firms is designed to streamline financial management and project lifecycles. The right ERP software solution will make it easier to keep projects on track and stay ahead of important deadlines by offering helpful tools for tracking financials, managing contractors and sub-contractors, and simplifying business processes. These comprehensive software solutions also collect, store, and analyze large amounts of data from across the company.
Key Modules for the Construction Industry
Most ERP software designers break up their products into different modules to improve agility and keep costs low for customers. Construction companies need to consider which modules will be most helpful in accomplishing their goals. They often include:
- Â Financial management
HR and payroll
Project costing
Contract billing
Asset management
Procurement
Workflow processes
Reporting
Health and safety management
Knowing what to look for in terms of ERP modules makes it easier for companies to choose a product that suits their needs. Some ERP software designers create products specific to the construction industry, while others offer more generalized solutions that must be tailored carefully to each customer’s specifications.
Benefits of ERP for the Construction Industry
Before deciding which software solution to invest in, company decision-makers must first determine whether an ERP platform is the right option to meet their goals. One look at the proven benefits of ERP will make that decision simple.
Automated Operations
Construction companies often have multiple business processes spread out across locations. Operations range from project management and cost estimation to client handling, staff management, and more. Automating as many of them as possible reduces busy work, avoids human error, and ensures that everyone is on the same page.
Optimized Project Management
ERP software makes it easy to optimize project management by maximizing efficiency and ensuring the appropriate allocation of resources. This, in turn, helps companies avoid costly errors and delivery delays.
Improved Internal Communication
Poor internal communication often leads to missed deadlines. Construction firms can avoid this issue by utilizing video chats, connected calendars, and other communication and collaboration tools.
Enhanced Marketing Strategies
As with all industries, successful marketing strategies are crucial in construction. ERP software makes it easier for marketing teams to analyze data points and create more effective branding, email campaigns, CTAs, and more.
Mobile Responsiveness
Cloud-based ERP systems make it possible for authorized personnel to access project information from anywhere. Contractors can get real-time updates, contact others from the site, and manage client expectations more easily, making it possible to both promote more streamlined workflows and avoid costly delays.
How to Choose the Right ERP Solution
Now that construction company leaders understand why it’s a good idea to invest in ERP software, they have to decide which one to use. The best solution is to evaluate different products meticulously, being sure to compare apples to apples. When in doubt, keep in mind that consultants are available to help, as well.