Construction on base projects often involve pre-project stages, such as preparation and maintenance.
A lot of time and money is spent at this stage. Construction involves some operational processes that are difficult to perform because not many ERP samples can support the need for data for integration.
Looking at the construction industry as a whole, it has been growing for the past decade.
It is expensive and requires a lot of labor and materials to operate, with little involvement from software.
Although there are now many construction management software options available, very few of them still involve all aspects, including digitizing very difficult field data.
However, if a company uses an ERP system for construction, it will be able to manage the cost of individual projects and the projects as a whole more easily.
Specifically, consider the following subject: ERP software for construction.
5 major steps in the ERP implementation
An independent management information system does not rely on controlling or cost planning and is instead focused on record-keeping and output. Project management without documentation is focused on time and progress, while human resources are funded for projects that focus on basic needs.
The stages in the construction sector can be generally summarized as follows:
Pre-project
At this stage, the company will go through a tender process, an announcement, and a presentation up to making a bid. They will certainly need to document each step in order to be evaluated.
Project preparation
At this stage, the company will complete all administrative documents such as SPMK, subcon selection, and mobilization of personnel and infrastructure.
Project implementation
The implementation of the project will be monitored for progress, time, cost, obstacles and documentation.
Project maintenance
At this stage, we will be monitoring the whole project for complaints about maintenance so that we can guarantee that the results of execution are not a problem.
Project shutdown
At this point, it will document all execution results, profit and loss, and evaluation.
Choosing the right ERP software for construction
When choosing to implement ERP software for construction companies, it is important to document steps and processes. Decide which ones will be digitalized and consult an ERP solutions provider for help.
The benefits of consulting with an ERP solution provider include:
- Know the existing steps and the solution process.
- Know the estimated cost and implementation time.
- Know the things that must be stored including risk management and change management.
In implementing ERP, all processes will certainly take a lot of time.
The tips for implementing ERP in the construction sector include:
- Risk items can occur at every stage and in every process.
- Help source risks on cost, scope and timing.
- Identify necessary maintenance actions.
- Apply the erp from the less affected stage.
Applying ERP to a construction company
Some examples of ERP implementation in companies, such as Product Companies and Service Companies, you can look at as follows:
Analytic
An example of an ERP application that would deal with analytic systems. Analytic systems of the digital age such as today are urgently needed to collect data accurately and to make precise and speedy decisions.
Warehouse
This is an example of an ERP application that is related to warehouse management. An SCM system can be used to track and manage the movement of goods throughout a supply chain. The system is designed to manage the storage and distribution of goods, as well as track inventory levels and employee workloads.
Human resource
The final example is an ERP application linked to a human resources system. The system can help the company to identify appropriate talent, develop quality SDM transparency data and other factors which may reduce or simplify existing problems. This system is typically used by the human resources department to improve employee productivity.
ERP benefits for construction companies
Here’s the explanation of the benefits of ERP software for construction companies:
Establish standardized procedures
An ERP system that is implemented using best international practice processes and adopted by a company can be very beneficial.
The ERP can help to make a job more structured, so that employees will not be solely responsible for specific or individual tasks.
Corporate erp apps can help improve efficiency and effectiveness.
Improve data accuracy
The erp system contains various modules that can provide specific representatives for each business component.
If data is entered into the module, then information such as payment and supplies will be automatically updated for others.
Updates that occur when a transaction happens are realistic or precise.
The data that needs to be entered only requires one input at the time of the transaction, so you don’t need to worry about entering it into the other.
This would minimize errors by only requiring a single input of data. A centralized database is more likely to have better security and avoid data loss.
Increasing efficiency and productivity
An ERP system can not only provide a better plan, but also increase efficiency in daily routine activities.
For example, meeting sales goals, efficient workflows, delivering products or services on time, keeping cash flow consistent, maintaining quality standards with suppliers and managing team performance.
The ERP system will shorten the cash time cycles and payments to suppliers.
Planning and system information
The ERP system has decision-making tools, such as planning and simulations, that can help manage information systems more effectively by making better use of resources like materials, performance equipment and other resources.
ERP application recommendations for construction companies
Below are examples of several ERP applications in construction companies, such as:
- Gterp – erp software
- Erp netsuite
- Brightpearl
- Sage intitching
- Erp odoo
and many more.
Conclusion
Construction on base project based projects typically involve pre-project stages, such as preparation and maintenance.
There are many construction management software options on the market, but very few of them include all aspects, including digitizing difficult field data.
The explanation above provides information on the various types of ERP software for construction that can be used.