In today’s competitive environment and economic instability, construction companies are faced with the need to improve their efficiency and reduce costs. One of the key factors for successful financial management is the development and integration of enterprise resource planning systems. These programs provide you with comprehensive tools to control a company’s finances, ensuring transparent and efficient management.
Advantages of implementing ERP-systems
Quick access to accurate data
ERP-systems combine all of a company’s financial data into a single platform. It allows users to receive accurate numbers, create reports and make forecasts in real time. For example, McKinsey noted in its study that introducing an ERP-system decreases the time needed for data collection and processing by 30-50%.
Improved budgeting and planning
ERP systems provide powerful tools for analyzing financial data, allowing you to make more accurate forecasts and plans. This is especially important for construction companies, where projects often require significant investment and long lead times. A Gartner study found that companies using ERP improve budgeting accuracy by 20-25%.
Project management optimization
ERP systems integrate project management functions, allowing you to control costs and task deadlines. This reduces the risk of exceeding budget and missing deadlines. According to PMI, companies that have implemented ERP reduce the number of projects that are over budget by 15%.
Global experience
- Skanska is one of the largest construction companies in the world that has implemented an ERP system to manage its financial flows and projects. As a result, they reduced administrative costs by 12% and improved control over their projects, resulting in an 8% increase in profits within the first two years of implementation.
- Turner Construction used an ERP system to integrate financial and project data. As a result, the number of errors in reports decreased by 50% and the time to prepare financial reports decreased by 35%.
Statistics and Research
According to a study by the Aberdeen Group, companies that have implemented ERP systems report an increase in revenue by 10-15% due to improved resource management and financial condition.
Deloitte in its report indicated that 73% of companies using ERP reported significant improvements in operational efficiency.
Conclusion
Introducing ERP systems in construction companies results in a number of benefits. These systems not only help optimize the company’s finances, but also increase its competitive ability in the market. Major industry players demonstrate that investments in ERP systems pay off through improved operational efficiency and profitability growth. In today’s market environment, ERP-systems are becoming an essential tool for running successful business in the construction industry.
