Construction

ERP system in construction industry

Saturday October 15, 2022
5 min read
Construction ERP is a project management software developed to integrate all construction industry projects and manage them from a global and centralized point of view. 

Wind of change 

Deciding if you want to change ERP software (or implement it from scratch) is the first and most complicated step. The ERP software you choose must have functionalities which will address construction site specific requirements – these are explored later on in this article. You know that it is a very important decision that will completely change the way your organization works, so it is normal that concerns arise about the possibility of problems or an implementation gone wrong. But postponing the decision is not a solution, let alone working with an ERP software for construction that does not meet your needs. Instead, get your team together and involve them in the implementation process. If your team know the software well beforehand, this may dispel doubts or mistrust. 

Your needs and objectives 

It is necessary you lay the foundations for a good selection process. To do this, you can prepare a document with your company's requirements, i.e. an RFP (Request for Proposal) in which you indicate your present and future needs, the objectives you intend to achieve and the budget you are willing to invest in construction ERP software. Having your team on board to prepare this document will be another incentive to win your team's approval. 

Start looking for an ERP for construction companies 

You've already established what needs to cover, so now it's time to look for the ERP system that addresses those needs. You will have seen that there is a number of ERP systems for construction companies. After a thorough analysis, select the three that best suit what you are looking for. When you start comparing the prices, you will see that a reliable ERP software is not going to be cheap and it makes no sense to economize on ERP software quality. 

A partner? 

Once you've short-listed the available ERP software, it's time to choose a partner that will be the driver behind the revolution. First, you need to be sure about the quality of the service you’re getting – so, for example, if you’re going to implement Microsoft Dynamics 365 FSCM, make sure the provider is a Microsoft Business Applications Inner Circle member. In other words, does the software they sell meet the established quality standards? Are they experts in working with companies in the construction industry? How do they work? How close or far away are the HQs? Afterall, opting for onshore and nearshore partners has its advantages, and then going offshore, though cheap – may prove unreliable. And finally, check if the ERP software you want is the best match for your project management requirement in the construction industry. 

Construction ERP functionalities  

Construction project management 

Construction ERP software should help you manage and control your construction sites globally and end-to-end. Product, supplier, and customer data must be managed from a single point of reference. In addition, your ERP should enable you to be able to generate estimates, and calculate costs. Budget control will be key to the planning and allocation of expenses incurred. The ERP you choose should also allow you to access your data from anywhere in the world and allow you to analyze the status of your management projects.
ERP system in construction industry


Benefits of a construction ERP 

Reduced costs and delivery times 

A construction ERP system helps you to be on time and more accurate in project management, especially when working with tight deadlines. In addition, through scheduling you will be able to manage your projects efficiently and within budget. 

Increased productivity 

Correct planning and execution of work in which all the required tasks, costs and times for the proper development of the project are established in an organized way will result in an improvement in the productivity of your company. 

Business process automation 

Through the automation of business processes, you will get your team to minimize the use of resources for repetitive tasks and focus on those that really add value to the company. 

What is the best ERP for construction companies? 

There is currently a wide variety of systems for project management in the construction industry. There is a divide along the lines of size (SMEs or large companies), based on different implementation models or different technological platforms. Some construction companies work with Microsoft Dynamics 365 FSCM. Why this ERP software? 

Flexibility 

Depending on the needs of each company, you can implement the ERP software on your own server (on-prem) or in the Microsoft cloud. 

Accessibility 

The web client is compatible with the most popular browsers (Explorer, Safari, Chrome, Firefox, and Edge). 

Innovation & integration 

Microsoft has been able to reinvent itself in recent years in an extraordinary way, to the point of becoming a benchmark company in technological software innovation and development. The products offer endless possibilities to companies by allowing them to integrate with other applications, such as Teams, Office 365, SharePoint, and Power BI. 

Advantages of Dynamics 365 for your construction company 

Multi-device

No matter how you access and use systems-anywhere, anytime, on any device-you'll enjoy the same seamless experience and enterprise-class security to protect your business and employees. 

Rapid deployment

Microsoft ERP software is designed to get you up and running quickly and to help you grow efficiently as your needs change. 

Productivity

Companies around the world are taking advantage of the benefits of helping employees collaborate smarter and automate tedious manual tasks. 

Availability

Mobile and cloud solutions are becoming a means to transform business processes and offer new ways of working. Replacing existing systems can seem overwhelming and complex, as well as too much of a disruption. With modern cloud applications, the advantages far outweigh the risks. 

Adaptable

Increased efficiency, security and greater mobility make it easier for companies of any size to use technology as a competitive advantage. 

Global Vision

Microsoft Dynamics 365 helps connect the parts of the business and reveal information  operational processes and the best path to growth. Share data and collaborate for better results Imagine the time and cost savings if IT could use real-time operational data to help employees make better decisions and serve customers more efficiently. 

Finances

The finance team can monitor expenses in real time, and have a realistic view of cash flow. customer service. 

Pricing 

When it comes to knowing how much the implementation of ERP software for the construction industry will cost, you need to consider implementation services themselves as well as licensing costs. With a well defined security setup, you can expect to make significant savings – pay only for what you really need. 

Over to you 

Now that you know everything that ERP software for the construction industry can do for you, make sure you ask vendor for a live demo. If you would like to learn more about construction ERP or have any questions, please do not hesitate to reach out. I’ll go out of my way to answer any queries. And then again, whatever the case, don't feel pressured to take quick action. These types of decisions take time. Afterall, a lot of resources are at stake. 

Are you interested in implementing dynamics 365 in the construction industry? Read more on Dynamics 365 for construction | XPLUS.

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