How can ERP System Empower Your EPC Business: A Comprehensive Guide
Usually, many companies fail to perform to their capabilities in the EPC industry. The primary reason for this is the company’s inability to scale up. On seeing the business model, an expert can figure out that the profit margins for each project are not very high. It becomes vital for such enterprises to scale up to take bigger engineering, production, and construction projects with more profit margins for better growth.
EPC ERP enables organizations to scale up quickly with increased decision-making capability of the management due to increased visibility through desired reports and graphs. These advanced, high-performance systems help companies to schedule processes properly and generate automatic reports based on accurate data.
Read further to learn the benefits of an ERP system that empowers EPC businesses.
- Project wise budgeting
In EPC businesses, the execution often differs from estimating the project expenses, making budget control a huge task and achieving accurate results more complicated.
With ERP implementation, you can manage and control procurement, sub-contracting, and other overhead expense budgets. Managers can control, modify, and monitor these budgets when needed.
- Stock re-conciliation
Re-conciliation of stock in the warehouse and on the job site is the primary cause of profit leakage and, thus, a huge concern for the top management. Reconciling the value and stock is a time, resource-consuming, and expensive affair. You can easily automate the stock re-conciliation task with a robust EPC industry-specific ERP system.
- Inventory tracking
Tracking inventory is important as it decides upon a huge chunk of profit-making and loss-saving. With many fast-tracked projects to be completed in a limited timeframe, EPC companies usually risk placing duplicate orders to the suppliers for the same materials at different job sites and, thus, require efficient inventory management. However, managing and tracking inventory is a complex, time-consuming task you can complete quickly through ERP systems.
- Consolidating meaningful reports accurately
Getting the exact reports from existing processes and consolidating them often lack accuracy despite the huge effort of employees. And a generation of inaccurate reports usually results in wrong decision-making, affecting the business in the long term. ERP systems can automate the report generation process, saving the cost of man hours and time. You can also regularly update the ERP application’s day-to-day functions regularly to access exact and meaningful reports.
- Tracking labor attendance
Aligning with labor-related compliance is one major aspect that EPC companies need to focus on. However, complying with these labor laws is complex and eats up a lot of time. The manager’s ability to capture the regular attendance of workers at the site and office can make the task easier.
With stringent labor laws and regulations in the EPC industry, ERP applications can help smoothen the labor attendance capturing and tracking process, making your company compliant with laws. Moreover, powerful ERP solutions are capable of tracking changing regulations and compliance within the industry.
- Effective project closures
Every EPC company’s version of project closure is distinct. For the procurement team, the project closes after procuring all desired items for production or construction as per the order. At the same time, the sub-contracting team considers the project to be completed when the installation part is over. ERP systems close the projects as per the original checklist to ensure that the project is being closed according to pre-determined terms and conditions.
- Faster decision-making with increased visibility
Making business decisions for the companies operating in the dynamic EPC industry is not easy and requires analytical reports and visibility throughout the organization. These decisions can turn out to be disastrous because of inaccurate or missing data. Only a company with a high-performance ERP system providing the right reports and accurate data can make extremely important business decisions.
In the project-based industry, delays are bound to happen if companies fail to plan in three crucial verticals, i.e., procurement, execution, and erection. You can streamline the project according to the plan and ensure proper execution only after knowing the possible roadblocks.
ERP Software for Construction can give an exact reason for project delay beforehand, allowing managers to resolve identified issues on time and ensuring project closure on schedule. Furthermore, remember that successful ERP implementation projects are more about people and processes than technology.