05 Dec
5 Common Mistakes in selecting a Construction ERP Vendor and their Solutions
We've probably already heard how greatly increased productivity and efficiency may benefit your construction company from an ERP setup. An ERP system for the construction industry indeed has the potential to simplify operations, save costs, and foster better departmental cooperation. On the other hand, a badly designed ERP implementation can make the issues it is meant to address worse and cost businesses a lot in terms of delays, lost productivity, and unforeseen costs.
The usage of specialized machinery, including ERP software, is widespread in the construction sector. The time it takes to set up your business processes can frequently be reduced by selecting an ERP for the construction sector that you are confident can fulfill your unique needs. In this blog, we will get to know the 5 most common ERP blunders and how you can avoid them.
The Need for Construction ERP:
Construction ERP and business software have been available for a while; however, most systems do not address the primary requirement of a construction company's business process, namely managing projects. For this reason, ePROMIS ERP was developed to offer project-based businesses, particularly construction firms, a comprehensive solution that covers the bulk of their business activities.
The Enterprise Resource Planning (ERP) sector did give rise to a market requirement for PBA. ERP is a good option for most conventional businesses in manufacturing, retail, distribution, etc., but it doesn't do much to address the process management requirements of project businesses, such as construction firms. As a result, construction firms wind up managing their primary business procedures—which center around projects—through a variety of additional applications. All those procedures are managed by the ePROMIS ERP solution, effectively building a workable cloud ERP for project-based construction firms.
Blunders in Construction ERP and How to Avoid them?
Errors in construction project management are common, but they can be reduced with advanced planning and close attention to detail. It can be challenging for managers to retain daily flexibility, much alone deal with unforeseen challenges because a construction project has so many moving pieces and they must deal with unpredictable factors like the weather, labor shortages, and client changes.
Below are the five most common construction ERP mistakes and how you can avoid them.
1. Lack of Research about the ERP Vendor: The construction sector has its distinct requirements and obstacles, just like any other industry. It is generally better to choose an industry-specific ERP solution rather than a horizontal ERP program when selecting an ERP solution. Therefore, if you select a specialist ERP solution designed for the construction sector, you will receive customized modules and gain access to more industry-specific features, which will ultimately result in a faster return on investment. Additionally, be careful to investigate the vendor's success rate. Having three to four construction company references on hand is always a good idea if you want to learn more about the ERP software's features and after-sales support.
2. Ignoring the Change Management and Training: A successful ERP implementation depends on the use of the system by all departments that have been migrated to it. ERP implementations frequently fail because staff members reject the new system because they find it unsettling. Before the ERP system goes live, invest in training, and encourage your staff to become familiar with it. In addition to traditional training, it is a good idea to provide instruction through additional channels including videos and webinars. Encourage them to clarify their doubts and ask questions. Keep in mind that the end user's quicker adoption and acceptance is probably the best indicator of an application's performance in the construction industry.
3. Misunderstanding your Goals: Failure to adequately prepare and comprehend the project's aims can cause it to fail. Due to missed deadlines, contractors may incur major losses in terms of labor expenses and clientele. Planning for raw materials, human resources, design, and other resources necessary to finish a project successfully can be facilitated by an ERP for a construction company. Take baby steps rather than attempting to adopt the answer all at once. Move the processes that are most important to the business first, including end users, get their input, close any gaps, and then repeat with other processes.
4. Not doing a thorough Analysis of your Business: Before you start your construction ERP deployment, it is crucial that you carefully examine your business processes. It is very tempting to simply automate the current process. Yes, this will speed up operations, but you won't be able to utilize the construction ERP solution to its fullest extent. The proper approach is to analyze your current business process, close any gaps, and then automate it using an ERP system. Due to the unique nature of the construction industry, ERP must include features appropriate for managing projects of your kind. Therefore, the first step is to assess your company's requirements before selecting a solution that has all the features you need. Avoid deciding based solely on what other construction firms are doing. Choose a service that offers all the functionality your project requires.
5. Not Making the Necessary Time, Financial, and Resource Plans: Calculate the costs, supplies, and labor hours needed to complete the implementation. Organizations that have attempted to do more with less have frequently failed terribly. To prevent delays and discord among the implementation teams, it is crucial to thoroughly examine and maintain the estimate as closely as possible for accuracy. You can use the time you spend on manual, repetitive operations to increase your company's production. You will be able to present deliverables to the client-side stakeholders on time if projects are completed more quickly and efficiently. On-time deliveries are increased by 24% with modern ERP systems.
Conclusion: Construction projects can be extremely challenging and complex. Therefore, managing a construction project is a challenging task for anyone working in the sector. The last thing you want is to cope with an expensive error that forces you to factor the expense of repairs into your spending plan. While certain project life cycle issues are unavoidable, others can be avoided with careful planning.
The usage of specialized machinery, including ERP software, is widespread in the construction sector. The time it takes to set up your business processes can frequently be reduced by selecting an ERP for the construction sector that you are confident can fulfill your unique needs. In this blog, we will get to know the 5 most common ERP blunders and how you can avoid them.
The Need for Construction ERP:
Construction ERP and business software have been available for a while; however, most systems do not address the primary requirement of a construction company's business process, namely managing projects. For this reason, ePROMIS ERP was developed to offer project-based businesses, particularly construction firms, a comprehensive solution that covers the bulk of their business activities.
The Enterprise Resource Planning (ERP) sector did give rise to a market requirement for PBA. ERP is a good option for most conventional businesses in manufacturing, retail, distribution, etc., but it doesn't do much to address the process management requirements of project businesses, such as construction firms. As a result, construction firms wind up managing their primary business procedures—which center around projects—through a variety of additional applications. All those procedures are managed by the ePROMIS ERP solution, effectively building a workable cloud ERP for project-based construction firms.
Blunders in Construction ERP and How to Avoid them?
Errors in construction project management are common, but they can be reduced with advanced planning and close attention to detail. It can be challenging for managers to retain daily flexibility, much alone deal with unforeseen challenges because a construction project has so many moving pieces and they must deal with unpredictable factors like the weather, labor shortages, and client changes.
Below are the five most common construction ERP mistakes and how you can avoid them.
1. Lack of Research about the ERP Vendor: The construction sector has its distinct requirements and obstacles, just like any other industry. It is generally better to choose an industry-specific ERP solution rather than a horizontal ERP program when selecting an ERP solution. Therefore, if you select a specialist ERP solution designed for the construction sector, you will receive customized modules and gain access to more industry-specific features, which will ultimately result in a faster return on investment. Additionally, be careful to investigate the vendor's success rate. Having three to four construction company references on hand is always a good idea if you want to learn more about the ERP software's features and after-sales support.
2. Ignoring the Change Management and Training: A successful ERP implementation depends on the use of the system by all departments that have been migrated to it. ERP implementations frequently fail because staff members reject the new system because they find it unsettling. Before the ERP system goes live, invest in training, and encourage your staff to become familiar with it. In addition to traditional training, it is a good idea to provide instruction through additional channels including videos and webinars. Encourage them to clarify their doubts and ask questions. Keep in mind that the end user's quicker adoption and acceptance is probably the best indicator of an application's performance in the construction industry.
3. Misunderstanding your Goals: Failure to adequately prepare and comprehend the project's aims can cause it to fail. Due to missed deadlines, contractors may incur major losses in terms of labor expenses and clientele. Planning for raw materials, human resources, design, and other resources necessary to finish a project successfully can be facilitated by an ERP for a construction company. Take baby steps rather than attempting to adopt the answer all at once. Move the processes that are most important to the business first, including end users, get their input, close any gaps, and then repeat with other processes.
4. Not doing a thorough Analysis of your Business: Before you start your construction ERP deployment, it is crucial that you carefully examine your business processes. It is very tempting to simply automate the current process. Yes, this will speed up operations, but you won't be able to utilize the construction ERP solution to its fullest extent. The proper approach is to analyze your current business process, close any gaps, and then automate it using an ERP system. Due to the unique nature of the construction industry, ERP must include features appropriate for managing projects of your kind. Therefore, the first step is to assess your company's requirements before selecting a solution that has all the features you need. Avoid deciding based solely on what other construction firms are doing. Choose a service that offers all the functionality your project requires.
5. Not Making the Necessary Time, Financial, and Resource Plans: Calculate the costs, supplies, and labor hours needed to complete the implementation. Organizations that have attempted to do more with less have frequently failed terribly. To prevent delays and discord among the implementation teams, it is crucial to thoroughly examine and maintain the estimate as closely as possible for accuracy. You can use the time you spend on manual, repetitive operations to increase your company's production. You will be able to present deliverables to the client-side stakeholders on time if projects are completed more quickly and efficiently. On-time deliveries are increased by 24% with modern ERP systems.
Conclusion: Construction projects can be extremely challenging and complex. Therefore, managing a construction project is a challenging task for anyone working in the sector. The last thing you want is to cope with an expensive error that forces you to factor the expense of repairs into your spending plan. While certain project life cycle issues are unavoidable, others can be avoided with careful planning.
