ERP System In The Construction Industry
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ERP System In The Construction Industry

The modern day ERP ( Enterprise Resources Planning) System was introduced to the technological world in the last decade of the 20th century. Though a lot of people are of the opinion that an ERP system has been in existence as far back as 1960, though in another form as (manufacturing Requirement Planning).The Business world is fast evolving, a lot of changes are happening here and there.

Companies all over the world are embracing globalisation, exploring ways of simplifying their processes, reduce cost, maximise profits, all in a bid to remain competitive. All these and many more are shaping the business world. Things are changing very fast, likewise customers desires, and expectations have never remain the same.

ERP FM Construction

More than ever before, customers have more options, as regards to what they want, who they want to do business with, and how much they are willing to pay for such. A lot of things that one knows that worked perfectly even as far back as a decade ago, have somehow become obsolete. These changes are not restricted to some sectors of the economy,as all sectors are equally affected.

The construction industry and infrastructure is not left out of these positive change, it has equally embraced the benefits of implementing an ERP system into her operations. In this article, we would be looking at some ERP use in the construction industry, with a major focus on their roles, and how they help with the processes in the industry. One major reason a company would want to implement an ERP system is the need to automate all her processes. Automating a system would saves time, and also reduce human errors.

This ensures that all their processes passes through a single database system, thus allowing greater collaborations, and efficiency among the various departments in the organisation. Almost every activity in a construction industry relates to a project. Likewise there are lots of processes that every projects entails. ideally, every project is expected to have three phases during its life cycle. These are a pre construction phase, construction phase, and a post construction phase.

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Activities like expression of interest, preparation of bid documents, feasibility, legal requirements, bidding, staffing, costing, duration, etc, takes place mostly during the pre-construction phase. There is the need for a standardised software that is able to handle effectively and efficiently all these processes among the various business units. This can only be found in an ERP system.

During the construction phase of a project, a lot of physical activities goes on, and as such details like supplies, inventory management, asset management, staff record management would always be needed, and it is only an ERP system that has the ability to provides all these seamlessly anywhere in the world to any authorise users so far such can get access to an internet connection and a laptop. Activities that takes place during the post construction phase of a projects includes processes like, project sign off also known as , project completion certificate, asset and liabilities list, project balance list, outstanding payments, etc.

These processes cut across various departments in the organisation. An ERP on its own integrates all these processes from the various departments into a database system, thus making it possible for the various departments to easily share information among them.The construction industry is part of the real estate sector of an economy. This is a highly capital demanding industry, that thrives well when the economy of a nation is good.

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An industry like this generates a lot of information that is needed daily by top management in order to make quality decision. These information includes areas like planning, project management, legal requirements, engineering, quality control, Project estimation, labour contracting, procurement, supplier, marketing, customer care,asset management, sales, etc.

In view of this, there is need for a system that can help simplify information flow among the various departments/units, processes across the entire organisation. Its only an ERP system that has the capacity to do this seamlessly, thus making all information to be accessible from a single database, thus aiding efficiency and productivity. Implementing an ERP system could be a very capital intensive project to undertake, but the advantage and value it offers would always surpass the cost based on what has been mentioned above. The values it brings is so enormous for it to be ignored, more especially for a multinational organisation.
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