Construction ERP Software

Posted on
February 21, 2022

As the business grows, not only does the number of employees and operations increase in the enterprise but it also needs to construct and manage bigger tasks and projects. The entire workflow of the construction company needs to step up to a greater level to manage and control the increased responsibilities. They eventually reach a point while growing when it needs a system to keep up or streamline the growing variables or else the productivity and profitability may get hampered, and subsequently, the expected growth may not be achieved.

#1 - When do we need ERP software?

Now to answer question #1 mentioned above, this is when Enterprise Resource Planning(ERP) software is required by budding enterprises to help them grow without any difficulty. ERP is important for growing construction businesses that need assistance in managing and controlling their rising business elements.

#2 - What is ERP software?

To answer question #2, Enterprise Resource Planning is a business process management software that acts as a strategic tool to help budding enterprises in upgrading and refining their work processes and facilitate growth by optimizing operational costs and business operations. ERP manages as well as integrates the material supply chain, construction operations, site reports, financials, fabrication, human resource operations, by collecting information related to them and providing better insights.

#3 - Why do we need ERP software?

And to answer #3 and the last question, we need ERP for budding enterprises so that they can handle their construction operations wisely which boosts growth. An ERP software enables businesses to reassess the working processes and financials to develop and provide better methodologies to run the company that reduces the overall expenditure without comprising the quality. ERP is capable of managing and organizing the workforce and business procedures in a streamlined manner. 

By answering these three questions, we learnt about the background of construction businesses in their initial stages. The number of employees working in a construction startup in its initial stages or any small-scale enterprise is not more than a handful. Also, there are very few standard work procedures that are followed in these types of enterprises. It is relatively easier to manage and control business operations and keep track of all information in these establishments. 

What do you mean by ERP software?

ERP is software that facilitates, integrates, and programs each business process such as procurement, inventory management, and sales using the most recent technologies to deliver better insights and significant information. The analyzed and computed information is leveraged to boost the companies’ growth and optimize business performance.

In a nutshell, ERP software can be used by companies to digitally overhaul their business in terms of technology, processes, and final product. The modules developed using ERP software are exclusively designed and upgraded to fulfil a company’s growth objectives. It helps businesses in promoting growth and stabilizing with growing variables.

The best ERP for any type of business should possess the following characteristics:

01 - Must be able to provide an all-around review of each business process related to the enterprise.

02 - Gather and update all information in a centralized database

03 - Produce effective reports to assist the business in upgrading every process

04 - Improve and facilitate productivity in every module of the business

05 - Can be integrated with different tools and on various platforms to make information more accessible through different applications.

06 - Computerize all business processes which consume excess time.

07 - Must have adequate understanding in real-time to provide better business solutions each day.

ERP History

ERP has assisted in the manufacturing industries since the 1960s under different names. It was initially used to manage and control inventories for companies under the name Material Resources Planning(MRP) which was later on changed to Manufacturing Resource Planning(MRP II) during the 1980s. The term ERP was first coined by a firm named Garner in 1990.

Enterprise Resource Planning can be confusing at times as it comprises not just a single software but a set of different modules(business processes) where each of these modules performs different business functions. This set of modules typically includes applications for accounting, inventory management, customer relationship management(CRP), etc. 

Over the years, engineers have developed better codes to perform distinct functions for different sectors such as education, hospitality, construction, real estate, financial services, etc. Each of these codes and modules has been designed to gather information from the companies’ database and later on feed the projected information into the companies’ central database. 

The analyzed central information is available to the company for evaluation and comparison of business performances and the impact of resolutions based on these data. This process is the primary function of ERP software along with other important tasks like better control, enhanced business intelligence, and smart process automation.

Importance of ERP in Construction businesses

ERP software systems have become an essential tool that is being used by organizations that are looking to utilize their resources intelligently to boost growth. The intellect provided by these systems helps business leaders to reassign financial as well as human resources or develop better business processes at their core to not only save money but also retain quality and performance.

ERP has proven to be quite advantageous in terms of planning and coordinating also. The real-time updated inventory and business orders can be easily accessed by employees to compare different purchase orders and projected requirements from vendors. This makes ERP systems are very good communication and collaboration tools which also allow employees to make decisions based on the status of other operations.

As an intelligent analysis software, the ERP system can also produce numerous reports and results that can be leveraged by businesses in their favour. ERP is more than capable of converting rough data and analytics into easy-to-understand graphs and charts which helps in understanding the requirement trends.

Benefits of ERP Systems in Construction

Currently, business growth cannot be imagined without using an ERP software system, especially in the construction industry. ERP is very important to gather data related to the work modules of a company and process that information to provide better insights to improve workflow and profit margins. Here are some of the ways in which businesses can benefit from using an ERP software system:

01 - Improved Collaboration

02 - Optimized Costs

03 - Better Business Insights

04 - Enhanced Efficiency

05 - Seamless Infrastructure

06 - Low operational costs

07 - Less risk and better risk management

08 - Better user experience

Why does your construction business need ERP software?

Every growing construction business needs the assistance of an ERP software solution to see actual growth in their business. ERP technologies are improving day by day in organizing business processes, systems, and data to provide smart, accelerated, optimized, and adaptable solutions. Many construction companies do not feel the need unless they face any obstacle and so let us see why construction businesses require an ERP software solution:

01 - Optimizes Business Performance

An ERP software solution integrates all the business processes and provides better insights for business growth by accelerating decision-making and operational performance. 

02 - Improves Flexibility

ERP solutions can be easily configured as per a company’s requirement for effective growth by preparing the business to face any disruption or change in the market trends.

03 - Speeds up Operations

ERP takes in all information together and processes them to provide quick and effective solutions for the growth of your construction business. The entire business process becomes more transparent and accessible for employees to take quick decisions and thereby speed up operations.


Kumar Abhishek Anand
Content Writer