While there are software and dedicated apps to
manage finance for your organisation, a centralised ERP for project-based businesses can integrate your business
functions. From basic calculations to sales forecasts, every financial function
can be taken care of effectively using the single dashboard of an ERP.
Let’s take a look at some of the key areas in
the construction industry where an ERP can support businesseswith visible cost
optimisation.
·
Basic Finance functions
Automation through ERP assists your
business to manage income and expenses, credit and debit, payrolls, loans,
sales and purchases, etc. You can tailor the ERP platform to include specific
taxes, duties and other data points that are relevant to your business.
·
Manage quotes and bids
Project Management ERP such as OMNI provides the Detailed Resource Level
Costing capability which gives your business a clear picture of bids and quotes.
Here, understanding the cost structure is essential for determining the right
cost of a job.
·
Dynamic planning
Every plan in the construction business keeps getting updated due to
external and internal factors. Monitoring through phone calls, emails or excel
sheets requires an enormous time of your team members. Also, managing so much
data through project reports leads to inefficiencies.
Important details may get overlooked in the enormous pool of data.An ERP
solution enables dynamic planning by minimising the time and effort required
for updating plans. Better planning eliminates cost overruns and delays in
completion of tasks.
·
Solve problems on time
Everyone cannot be present at all places all the time. So, when problems
show up on your construction site, it requires immediate attention. Incidents
can be immediately logged on an ERP platform and the status of resolution can
be tracked by project managers easily.
For example, OMNI ERP has an Issue Tracker module which allows users to
report, monitor as well as resolve problems that are affecting work. The ERP
module gives the user every detail related to the problem such as who reported
about the issue, who needs a solution and how much time has passed since the
issue has been reported etc.
This problem-solving approach saves cost and mitigates risks in many
ways. Idle resources that are impacted by the problem can resume working as
soon as the problem is resolved. When work is affected, there can be a delay that
affects timelines. This, in turn, leads to costs incurred due to delays and
also disturbs the reputation of the business of not being able to complete
scheduled tasks on time.
·
Handling Cashflow
Working capital is extremely important for stakeholders in the
construction business. Earlier, cashflow tracking took place through excel
sheets and apps.
By utilising the Cloud based Project Management Software , you’ll be able to monitor your cashflows with
the help of predictive analytics. The system integrates your resources and the
flow of your finance to ensure maximum optimisation of your working capital.
·
Keep track of resources
You save costs when you are able to keep track of activity level cost
and the way it varies from the planned budget. By having access to the work
breakdown structure, your teams can ensure that resources are being utilised
effectively thereby keeping your profit margins on track.
·
Clearing Retention Amount
In the construction industry, retention amounts are part of invoices. An
ERP system gives you clarity on the amount that is to be released as part of
retention. By clearing the retention payments on time, your business won’t have
to hold back excess retention amounts that can impact your cash flow.
·
Maintenance costs
Resource management features of an ERP platform can assist you to fully
utilise your resources that require regular maintenance. Delayed maintenance
can lead to unfortunate accidents and damaged equipment. Handle contracts related to maintenance
upgrades and repairs easily using a seamless cloud-based ERP software.
To conclude, an ERP platform makes managing financial
functions effortless and also empowers an organisation with capabilities to
optimise processes and enjoy cost savings. If your teams are comfortable with a
specific app or popular software, you can continue using them in an ERP system
through third-party integrations.
If you are considering an ERP implementation
for your construction business, note that ERP
softwarecomes with standard modules as well as flexible modules.You can get
anywhere, anytime access to data and manage business functions smoothly with a Cloud-based
Project Management Software such as OMNI ERP.
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