Construction is one of the largest industries the UK, able to stimulate economic growth and employment due to its reliance on vast supply chain, however it struggles to maintain growth. This is due to changes in the market, along with issues such as the skills shortage, project delays and late payments. Only through detailed analysis of business data can construction companies address these issues. As Alastair Sinclair, Business Development Manager at Xperience Group, explains: “Construction companies face challenges from expanding markets and increased competition, both at home and abroad. They need to be efficient and agile, shorten throughput times and keep costs down in order to compete.”
Through the adoption of project centric ERP software businesses are able to exploit the positive effects they can provide. Here’s how ERP can help…
1. Enables effective management of your entire operation
ERP software can record and analyse data to provide actionable insights, streamline processes, help create accurate financial forecasts, schedules and manage resource levels effectively. What’s more, you can automatically order in equipment and materials, as and when you need it, reducing the quantity of cash tied up in such resource. Further to this, as explained on ERPSoftwareBlog.com, research shows businesses can benefit from an 82% productivity increase when automating their ERP solution.
2. Improves communication and collaboration
Utilising one companywide solution encourages collaboration and communication, and ensures everyone works from the same up-to-date data. It reduces the risk of duplication errors, providing one version of the truth, which can reduce project delays.
3. Increases your competitive advantage
By keeping up-to-date with the latest technology that provides you with the ability to interpret your business data, forecast trends, manage resource levels to improve efficiency, and maximise profits, you can remain agile and competitive. Furthermore, by documenting an entire project you’re able to present your success to potential investors, and win future contracts.
4. Provides access to data anytime, anywhere
Mobile and cloud enabled ERP software allows users to access business data anytime, anywhere, which is ideal for those moving from site to site as it ensures continuity and reduces hold-ups. With this increased access you can rest assured that everyone is always working from the most up-to-date, accurate data, which can significantly minimise delays.
5. Saves vital time and money
According to a study by Prism International study, an average of 2-7% of documents are misfiled, with 150 hours each year being wasted on finding these misplaced documents. By documenting every aspect of a project you can manage your operation effectively, saving vital time and money that can be reinvested back into your business. Furthermore, by automating processes and closely monitoring your operation you can improve delivery and completion times, control purchasing and keep costs to a minimum, which will allow you to improve cash flow and profitability. This ensures you remain on budget and on schedule.
Not only is ERP critical to the success of the construction industry, but also the UK’s economy. The industry needs to innovate, adopting companywide solutions in order to compete. It is innovative technology, such as ERP software that can help attract generation z, address the skills shortage, and minimise both delays and financial difficulties.