Construction ERP software manages the core business processes of construction companies. Learn about the different ERP modules and how to implement them properly.
Construction ERP software streamlines and consolidates a construction company’s workflows and processes to create a single source of truth, allowing the company to stay on track with its projects. This tool is essential for construction projects, as it functions as a practical timekeeper for managing deadlines and ensuring that progress is aligned with the project plan and budget.
However, implementing a construction ERP software is no walk in the park. It requires extensive planning and design processes for it to reach its full potential.
Enterprises looking to implement a construction ERP software may refer to this article, as it discusses different ERP modules and their functions, as well as how to begin the ERP software implementation process.
Top 10 Construction ERP Modules Your Company Can Leverage
Incorporating construction ERP software into your business processes provides many benefits. Your company can tap the following modules to optimize your workflows.
1. Asset Management
An ERP’s asset management module specializes in tracking your company’s capital assets: the equipment that you use in your construction projects.
This module can help you track where these assets are and their inventory levels. It will also alert you if a particular piece of equipment is already out of warranty or needs maintenance.
With meticulous tracking, you can leverage your assets to their full extent. This approach improves your margins in the long run.
2. Contract Billing
Construction ERP’s contract billing module allows you to manage billing accounts per customer or project. It has features that let you monitor your payables, receivables, and revenues based on task progress or project completion percentage.
Aside from accurate and flexible contract billing, the module allows for good project management by allowing you to document and implement changes to the scope of a particular project.
3. Environmental Accounting
The environmental accounting construction ERP module allows your enterprise to adhere to environmental standards, including air and water emissions as well as waste management. With the data it collects, it’s an excellent tool for improving various workflows—from sales to shipping, resulting in reduced wastage and emissions.
4. Financial Management
Construction ERP software simplifies financial management across your organization. The ERP software’s financial management module makes it easy for you to see when and where funds are coming in or going. As such, you can have more control over project expenses and budgets.
5. Health and Safety Management
Workplace safety is paramount in the construction industry. Construction ERP safety modules provide a central archive for gathering and storing incident reports, relevant documents, and photos involving people and equipment on a particular construction site.
You could then use such documentation to assess and enhance safety measures, as well as determine disciplinary actions or penalties for violators.
Additionally, an ERP system will track the attendance of every person on the construction site. This will make it easier to do a headcount should an unfortunate event happen.
6. Customer Relationship Management (CRM)
Apart from its employees, there is no other group of people more important to the company than its customers. Maintaining a good relationship with your customers is paramount.
With a CRM platform, all customer information and communications are consolidated and made available for everyone in your company to use. From there, your marketing and sales teams can use the information to guide their sales and marketing efforts.
Sales support and customer service teams can also use this data to provide a seamless experience for customers as they interact with your company.
The ERP software procurement module automates several processes, from merchant quotes to paying invoices and purchasing and inventory processes. As such, it aids in reducing costs and improving your relationships with various suppliers since you’re able to track your spending and manage your financial resources.
8. Project Accounting
The project accounting ERP module provides visibility across projects, finances, inventory, customer accounts, and other business-related processes. This module’s primary function is to track all project costs, offering a full view of project-related costs regarding labor, materials, services, and inventory.
Additionally, it enhances budget reporting as it allows you to compare actual project costs with original and altered budgets. Then you could make more accurate forecasts moving forward by utilizing such reports.
ERP construction reporting module ensures the delivery of key information in an intuitive format, allowing you to make well-informed decisions about the business and address common challenges in your industry.
The ERP module achieves this goal by offering a collection of reporting analytics resources that go beyond cash flow and balance sheet statements. You could then have a clear view of the company’s health and how market trends can affect your business performance.
This module works both ways: you can create new reports and modify existing ones.
10. Workflow Process
ERP workflow modules allow your enterprise to effectively define and modify its workflow and approval process. Moreover, its document management feature can help you track sensitive information and document signatories, thus helping avoid chokepoints when it comes to approvals.
How to Get Started with Construction ERP Software
Develop a comprehensive strategy
Here, it will be helpful to create a business process blueprint based on your workflows and how they interact with each other. Then you could determine which of these processes are eligible for automation, ultimately improving business efficiency.
It is best to implement the ERP project in phases to reduce confusion, miscommunication, or wrong judgment calls.
Identify the project implementation team
Your project implementation team shall design, deploy, and maintain the ERP initiative. The team is typically comprised of a management executive, project manager, data analyst, application developer, and QA officer.
Each team member has specific responsibilities—from managing customer accounts and scheduling production deadlines to tracking inventory and financial reporting.
Choose a cloud ERP vendor
ERP implementation can be an arduous task for the uninitiated. A certified cloud ERP vendor like dafa888 can make the process easier and significantly diminish the chances of implementation errors. dafa888 is a trusted IT company in the Philippines, serving construction and other specialized industries for over 20 years.
As a cloud ERP vendor, dafa888 works closely with award-winning ERP solutions company Acumatica. Specifically, dafa888 is a gold-certified partner of Acumatica. So, partnering with these IT powerhouses could be a significant step for your business to be the next major player in the construction industry.
Align your business processes
Starting a new ERP project presents the ideal opportunity to evaluate and understand your organization’s performance and identify critical points that need improvement.
For example, you may discover that you need to leverage technology and best practices to better prepare your company for future developments. At this stage, you must also test applicable modules in actual operations and evaluate them in real-time.
Start migrating your data
Once you’re done with the planning stages of the ERP implementation, it’s time to transition your company data into the new ERP system.
Data migration creates a solid foundation for your ERP efforts. The designated application analyst can begin with data cleansing and verification, followed by the database setup.
Once done, you can map legacy data to new database fields, transfer data to the new system, and conclude the process by testing and verifying the legacy data and new data inputs.
End-user training is an integral part of the ERP software implementation process. Employees must undergo extensive training, as they need to be acclimated to utilizing the new system and workflows.
ERP training can be via in-person meetings or online learning methods. Your chosen mode of delivery may depend on the size of your organization, which time zone your workforce follows, and specific goals.
Measure and evaluate
The implementation process does not conclude after every aspect of the ERP software has been integrated.
It’s crucial to address some elements like employee feedback, project value, budget considerations, and the like. For example, you can measure and evaluate the success of your ERP project by analyzing your ROI. Ask yourself: Has the company seen significant returns by incorporating ERP into its business strategy?
Additionally, you can examine various factors like decreased staff error, increased productivity levels, and client satisfaction.
Constructing Your Business Foundation
The construction industry thrives on precision and effectiveness, as every project possesses different intricacies to accomplish a particular vision. Using ERP software can make various processes easier while upholding quality.
However, while having standalone construction management software is good, it is better to fully integrate it into a versatile ERP system. Full integration of construction ERP software is a good investment that can help improve different aspects of your operations.
For a reliable cloud ERP vendor, look no further than dafa888. Serving Filipino citizens for over two decades, dafa888 has partnered up with Acumatica, an ERP solutions company that offers a fully integrated Construction Management module compatible with any system. dafa888 also develops customized construction management software to suit your business model and process.
Contact us and schedule a consultation with dafa888’s ERP experts for further information.