Benefits of Applying ERP Solutions for Construction Businesses

Apr 03, 2023
Construction companies need to apply advanced technology solutions in their construction and management operations to avoid being laid off in a fiercely competitive environment. Enterprise Resource Planning (ERP) solution is a professional tool that helps construction companies simplify their entire process, from planning and project control to cost measurement.

Challenges for the construction industry

Optimizing resource allocation

The demand for labor in the construction industry is increasing rapidly (estimated to need about 400,000 – 500,000 laborers per year). Many current laborers are preparing for retirement, while the Generation Y workforce lacks the necessary skills and experience to “take over” the industry.

Therefore, the construction industry needs more quantity and quality of labor. Companies will need help finding replacement labor if there are issues with human resources. In such circumstances, contractors must find ways to manage with limited resources and optimize operational efficiency.

Project progress management

Project progress management is a challenging task that requires various skills such as communication, team management, risk management, etc. Project managers must regularly check and compile unfinished duties/required tasks to timely adjust plans.

ERP nganh xay dung - GMO

Civil engineers have to take on a large volume of work, monitor progress, and address cost issues in construction projects

Cost management

Cost management is a significant challenge for construction companies, as there are various expenses to consider, such as labor costs, construction insurance, payments to subcontractors, costs for the owner, and material supply costs. Managing all these expenses accurately and efficiently takes work. Therefore, companies often use additional software and technological solutions in such cases.

Benefits of implementing ERP solutions for construction businesses

With its flexible modules and convenient web-based platform, RUNSYSTEM’s ERP solution has gained trust and successful implementation among many customers, providing superior strength for businesses in practice.

Read more: Success Stories in Manufacturing

Limiting errors

ERP solutions can control, manage automatically, identify, and fully transparently transmit information between departments accurately and quickly. As a result, businesses can avoid errors and risks related to human factors and improve work efficiency.

Streamline project management processes

Management levels can easily manage multiple projects simultaneously, control all relevant information, accurately update progress, develop projects based on predefined milestones, and assign tasks to each employee. This can be done very simply, with just a few mouse clicks.

Applying ERP solutions in business management helps engineers reduce workload pressure, minimize errors, and optimize resources effectively

Resource optimization

Business resources are limited. Without proper balance and rational calculation, it can lead to labor waste, customer loss, and financial loss. ERP solutions can assist businesses in managing personnel and allocating resources optimally through automated and visual tools. The software can also help managers track work progress in real-time, allowing for adjustments and redistributing the workforce for maximum efficiency.

Cost savings effectively

With useful features, ERP solutions have contributed to eliminating manual processes and improving the efficiency of warehouse management, personnel management, project management, cash flow management, etc. In addition, ERP also supports cost estimation and planning and helps contractors improve project efficiency and profitability. As a result, businesses can cut many costs, such as inventory management, raw material, human resource management, etc.

Accelerate information exchange

Information among departments within a business will be transmitted and shared quickly in real-time with high security. Contractors can also grant access to specific data to partners.

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