3 Perks to Using ERP Software in the Construction and Utilities Sector

The road to success is always under construction. During that construction, we are constantly overcoming obstacles and clearing barriers to growth. One of the biggest barriers to growth for many companies in the construction and utilities industry is the technology they are using to run their businesses. Many construction companies have gotten off the ground with pen and paper, a few spreadsheets, and raw talent and passion for what they do. This honest approach may work for a time, but it simply isn’t scalable. Papers get lost, spreadsheets become impossible to maintain, and people can get burned out from having to manage all of these manual processes. ERP software offers a scalable approach by automating processes and integrating multiple facets of your business into a distributed system with a centralized flow of information.

ERP Systems in the construction industry are essential. These systems connect your sales, purchasing, projects management, HR, accounting, manufacturing, and so much more, all into a single system. This allows you to track multiple data points across entire workflows instead of having separate SaaS products for each business need that do not communicate with one other. When you have access to all of the different data points in your business, it makes your reporting capabilities more robust and dynamic. This allows key decision makers to make better decisions more efficiently. Let’s take a look at how ERPs in the construction industry can do this.

The primary function of any ERP system for a construction company is to better manage the time, cost, and success of your projects. One of the ways it does this is by making sure projects start off on the right track. With increased visibility and access to historical data, companies can better forecast time, labor, and materials for new projects. Once the project is successfully underway, being able to track progress and margins in real time gives decision makers better insight to how a project is going. Sometimes it feels like bad projects are unavoidable but being able to make better data driven decisions gives key stakeholders the ability to correct course and mitigate damage before things become unsalvageable.

Once a project is completed and all the bills have been paid, it is time to assess and see what went right and what could be improved upon. EPR systems provide reviewers with the most data available and a detailed timeline of work completed and at what cost throughout the lifecycle of the project.

There are many ERP systems to choose from right now and it can be a frustrating process. No single system will be perfect, but having the ability to integrate with other systems can help you create the perfect system for your business.

Finding an ERP that is dynamic and flexible is important because that is exactly what your business needs to be in today’s industry. Maybe you need the advanced manufacturing and planning support that a software like Frepple provides? Maybe your company has already heavily invested into AWS services for your cloud infrastructure, and you want a system that can leverage those too? ERP systems that support REST API integrations allow companies in the construction and utilities sector to seamlessly integrate the solutions and software they need to harness what makes their business models unique. Instead of having to manually import and export leads from a CRM like HubSpot into your ERP, use API integrations to automate that process for you. That way, employees can get excited about new software instead of dreading the extra hours they will have to put in to keep everything in sync.

At the heart of every ERP system is accounting. You can build the most impressive system that is tailor made to your company, but if the accounting is off and you can’t close your books or reconcile your transactions then the system is useless. ERP systems like Odoo bring advanced accounting, reporting, job costing, equipment management, asset depreciation, and so much more, under a single umbrella. Instead of having to export data from multiple sources and compile it all into a single massive excel spreadsheet, you can have a system that brings all of that together for you in a dynamic and easy to read format.

ERP systems give you a window into the cost of every item you are working with and how much revenue those costs are creating in return. Use analytical accounting to track the margins of a project all the way from the initial opportunity to final invoice after completion. Leverage work in process accounting to get a better understanding of all active projects. This increased visibility can help companies find where they can cut down on costs by automating manual processes in order to free up labor that can be used for more revenue generating purposes. By having a trustworthy, real time, window into the current financial state of the company, leadership can be more empowered to make decisions with increased efficiency and effectiveness.

Being able to better manage projects and financials while removing any technological barriers to growth is an excellent way to help pave that road to success for companies in the utilities and construction industry. However, finding and implementing the right ERP system to enable growth ahead of time is always easier than trying to implement it while you are bursting at the seams because of technological barriers. Whether your goals are reducing costs or improving operations, finding a flexible ERP solution that fits your business allows you to bridge the gap between business and industry-specific software. Instead of shoehorning your business into a system, choose a system that fits into your business. Maximize your return on investment and minimize user pain points throughout the process.

Having trouble deciding which ERP to go with? See how this gas and utilities company was able to optimize their operations using OSI’s Odoo open source ERP solutions.

Your business moves a mile a minute and finding the time to step back and evaluate all of the options available in the ERP space may seem daunting. Which is why finding a partner to help you through the process can be critical to your success. At Open Source Integrators, we have decades of experience in the ERP Implementation Industry and have experts who can help you choose the right system that fits your needs. Open source software offers the maximum amount of flexibility for the lowest price without sacrificing quality. We have had successful partnerships with several businesses in the construction and utilities industries who have all seen phenomenal results.