Why eresource ERP for Construction?


Achieving operational excellence is one of the most important element to an organizatio's in construction business and to achieve sustainable performance and growth. The only thing that is constant in the construction business is Challenges and to reach for a higher level of operational excellence is important to reap numerous benefits a systemic, evolving and effective approach to business is crucial; It is vital to remain productive and innovation is yet another key for excellence.

How construction company can gain operational excellence ? It is really a destination. In our opinion, Operational excellence in business is an ongoing journey that organization should continuously achieve. It is a consistent, persistent process which can be achieved over a period of time. There are numerious factors that are important to the success of business in Construction business. One among them is having operational discipline. Operational Discipline can be achieved by having a solid system and foundation and this is possible only by implementing a Best industry practice ERP solution.

The construction industry is changing rapidly. There is growth opportunities in emerging markets and customer demands are driving the industry's players to diversify, both services and in also in their offerings. It is extremely important to have the best Enterprise ERP Software.

Now the basic question is why eresource ERP for Construction?

To answer, lets explain a typical business scenario.

Let me just give you a quick insight of only the CRM function.

Client or the main contractor approaches the contracting to construct a particular project. The project details are given to the Contracting company by the consultant of the Client or directly by the client. The Contracting company assigns the BOQ received from the client to the estimation department. The estimation department coordinates with the Purchase Department and checks the market price for material required for the project. The process of getting the market price takes time because information in most of the cases are not handy. Then the estimation team estimates the man-power requirements to construct a particular BOQ and similarly all BOQ's in the project.

The estimation team then checks if there is a need to subcontract any activity, if so, checks with the Purchase team and the project team to get the price of subcontractor per activity that they would outsource. Finally after all to and fro coordination and communication, a very high level estimation is created. The Estimate is givne to the sales team who approaches the client and handovers the Estimate the estimate. 10 on 10 of the time the client is not very happy with the estimate because the client has better estimate from another contractor so there is a requirement of multiple revision and finally the order is finalized. A work order is issued to the contractor. There are cases where the work order is not issued but only on Verbal LOI the work starts. Payment is agreed, which generally is 10% advance with advance deduction method as 10% against each invoice. Also, retention amount is agreed, which is most of the time is 10%. There is also deduction method for retaintion amount.

The function is simple but because visibility of information is not available the process of estimation looks big and is time consuming. The example is only for CRM, as such there are many department and division involved in the project execution.

eresource ERP for construction is a unified integrated ERP solution that connects all department, branches, divisions, functions under a central repository. Eresource ERP for construction will help gain Excellence.