Need for Digitalization in Construction and Contracting Industry
There are many differences between using a Contracting ERP software and following the traditional contracting management techniques that involve Excel, pen and paper, word, etc in driving overall productivity and overseeing expenditure.
Conventional contracting Methods.
In this traditional method of managing the contracting workflow process, there is no real-time data transmission from one point of constant to the other. If there is no proper planning and scheduling of tasks and resources, the high attrition rate among employees and the pilferage of materials and other key resources are inevitable.
A study has found that 90% of the construction companies use the conventional way of doing business reports which delays the execution of projects while incurring cost overruns. This mostly happens when you don't think of doing business with ease is not taken into account. Still, there are so many companies that are using excel and other Bookkeeping software, that are not ready to transform to the new digitalized era.
The real-time visibility of projects is not possible without digitization which makes the contractors don't have control over projects whether it may be cost, material, labor, etc. Moreover, the human processes lead to chaos and mismatch of data entry due to human intervention.
Compared to many other industries, the contracting industry has traditionally been slow at technological development. It has undergone no major disruptive changes. These factors indicate the strong need to go digitalized for contractors to grow big in the future. Resisting change is no longer an option for any company. Change is mandatory
ERP software for Contracting Management
The contracting management software facilitates, streamlines, and standardizes the contracting workflow process, operations, and the workforce. This is done by willingly switching the organization from the manual to the digital mode of automation.
Once all the procedures are right from Estimation, Budget Allocation, and Expense overheads like Material, Labor, and subcontracts, it becomes easy for the management to have a birds-eye view of the entire workflow process.
This will enable the managers to have 24/7 real-time visibility and governance over multiple projects in a single unified digital platform. Numerous studies have shown that using contracting ERP software has helped contracting companies save a lot of money.
They would have otherwise oozed out of the bag in the form of pilferages, wastage of materials, replication of work, overutilization of resources, inappropriate tracking of labor wages, discrepancies in salary disbursements, and many others.
Contracting management software provides real-time visibility and control over project budgets & actual spending, subcontractors, equipment, materials, labor costs, project finance status (Bank Guarantees, Letters of Credit, Overdraft status), project & Office overheads and accounts with custom approvals and mobile analytics dashboards. One can also perform multiple complex tasks without sweating them out for eg:
- Automate multi-location, multi-company, and inter-company accounting.
- provides everyone in the organization on the same page looking at the same real-time data.
- Full visibility into assets, inventory, materials, and labor.
- Control the cost of each project with the pre-planned budget and schedules
- Trach the Progress & Project-wise Profitability,
- Analytical reports drilled down to the last level
- Approvals and BI Dashboards on Mobile & Web
- Times sheet and site requests through Android / iOS Mobile App
Over 90 – 95% of contractors have reported significant savings and an increase in productivity after the implementation of ERP software for contracting. Using contracting project management software, paper trails are reduced significantly and the end-users can iron out construction management flaws and increase the final output by many folds.
With all this in consideration, Frontline Information technology has crafted you an industry-specific ERP solution that matches your exact requirement. When you get the right software like Horizon EBS Solution, changing the existing processes isn’t as time-consuming or complicated as it looks.
The total ownership cost of modern solutions is also affordable as the return on investment is great – Complete Automation. If you need to know more about Horizon EBS, you can contact us at sales@fit.ae or ring us at +971 4 353 3727
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