ERP - The Future of Construction
Construction ERP software acts as the central nervous system of a construction company, managing crucial functions like project management, financials, supply chain, service, and workforce.
When infused with AI and big data, these systems morph into intelligent hubs, transforming how construction companies operate across the entire project lifecycle.
By establishing one source of truth, construction companies are able to make data-driven decisions confidently backed up and supported by intelligent insights and forecasting.
Optimising Project Management With Data
Project delays and cost overruns have long plagued construction companies. Today however, the AI built into some the world’s leading ERP systems can significantly improve project management by analysing vast amounts of historical data from past projects.
By identifying trends, patterns, and potential bottlenecks, ERP systems can generate more accurate project schedules and budgets. Historical data on project durations, labour costs, and material requirements can be used to create realistic forecasts, reducing the risk of projects overrunning or needing costly rework.
Real Story: Proven Success With Construction ERP and Big Data
Trant Engineering, one the UK’s leading engineering and construction companies recently discussed how data-driven ERP helped save their business countless hours:
“COINS has streamlined how I support my staff in the prompt and timely submission and approval of expenses, irrespective of geographic constraints and the need to have access to scanners and email for wet signatures. The data collected is clear and auditable, reducing the chance of rejection.”
Read the full Trant Engineering case study >
Previously a full-time role, the data-analysis and entry provided by Access COINS ERP reduced workloads by two days a week, saving Trant over 832 hours a year in back-office administration.
AI can also predict and proactively address risks by analysing historical data such as subcontractor performance records. ERP systems, using the power of AI and big data analysis, can identify potential disruptions before they even occur.
This allows project managers to take preventive measures and mitigate risks before they escalate.
Additionally, AI can optimise resource allocation by analysing project requirements and worker skillsets to create optimal staffing plans. This ensures the right people are assigned to the right tasks, maximising efficiency and productivity.
Real-time Visibility: A Transparent Construction Site
The construction site is a dynamic environment with constantly changing variables.
However, ‘big data’ can provide real-time visibility into every aspect of a construction project, at every stage of the project lifecycle. This level of transparency allows for improved resource utilisation and tracking.
Additionally, ‘big data’ facilitates enhanced progress monitoring, alongside streamlining communication and collaboration.
Real-time data sharing across all project stakeholders, from architects and engineers to subcontractors and on-site workers, fosters better collaboration and ensures everyone is on the same page.
How Automation Helps Boost Efficiency and Productivity
Most all construction companies are burdened by repetitive tasks such as data entry, generating reports, and scheduling meetings.
However, for companies deploying construction ERP, AI-powered automation within their ERP systems can handle these tasks, freeing up valuable human resources to focus on higher-level functions.
This leads to a reduced administrative burden, as project managers and other staff can dedicate more time to strategic planning, client communication, and problem-solving.
Automation also improves data accuracy. Manual data entry is prone to errors, but AI can automate data capture and validation, ensuring the accuracy and consistency of project information.
With real-time data at their fingertips and AI-powered insights readily available, project managers can make informed decisions quickly and adapt to changing circumstances, leading to faster and data-informed decision-making.
Real Story: ERP Automation Boosts Productivity
Suir, a leading provider of innovative mechanical, electrical and instrumentation engineering solutions throughout the UK, Ireland and Europe, recently shared their experiences with ERP automation.
“We have not needed to recruit any additional payroll administrators to deal with the increased manpower, and now have more time to focus on checks and reviews every week.”
Read full Suir Engineering case study >
As a result of ERP implantation, they have been able to automate their payroll processes, leading to reduced errors, less workforce pressure and greater visibility and control.
Building a More Sustainable Future: A Greener Path Forward
The construction industry is a major contributor to environmental concerns. Big data and AI within ERP can be harnessed to promote sustainability through several methods.
Optimising material usage is but one but very important step. AI-powered ERP can help analyse project plans and suggest ways to minimise material waste, reducing environmental impact and lowering costs.
In some cases, AI can also be used to identify and select sustainable materials and construction methods, reducing the environmental footprint of projects and building a more sustainable future for the construction industry.
Protecting Profit Margins With Financial Forecasting
Financial forecasting within construction ERP software plays a critical role in maximising construction profit margins.
Traditional methods often rely on estimations and historical averages, which can be inaccurate and lead to missed opportunities or financial shortfalls.
AI-powered ERP systems, however, can analyse vast amounts of real-time data on project costs, material prices, labour expenses, and market fluctuations.
This allows for highly accurate financial forecasts that consider potential risks and opportunities. With this level of foresight, construction companies can make informed decisions about resource allocation, pricing strategies, and project budgeting.
Real Story: Regaining Control Over Margins With ERP Forecasting
We recently spoke with Robertson, one of the largest independently owned construction, infrastructure and support services companies in the UK.
Here, they discussed how implementing ERP has helped them regain control over their costs with advanced forecasting.
Robertson’s existing Cost Value Reconciliation (CVR) process was disjointed and offline, a time-consuming dual-system approach which restricted the level of detail, information and analysis available.
This made it impossible to assess the true cost of projects as their existing spreadsheet-based purchasing process couldn’t facilitate automated invoice or Goods Received Notice (GRN) matching.
“One of the problems that we used to have was that we would receive cost bursts too late, as a result of late purchase orders coming in and invoices arriving that were not forecast. Now we have the knowledge of a commitment as soon as it’s made – which is a huge benefit to managing costs.”
Read full Robertson case study >
The Road Ahead: Embracing the Future of Construction
While AI and big data hold immense potential for the construction industry, successful implementation requires careful consideration.
Some of the key challenges include integrating new technologies within an existing IT infrastructure, addressing data security concerns, and ensuring employee and stakeholder buy-in.
However, by overcoming these hurdles, construction companies can harness the power of AI and big data to revolutionise the way they build, paving the way for a future characterized by efficiency, sustainability, and innovation.
We recently covered How To Make The Business Case For ERP, in a step-by-step way to help you gain company-wide buy-in.
Access COINS is an ERP Built for the Construction Industry
With real-time data collection, automated reporting and analysis and powerful forecasting tools, Access COINS is a powerful ERP packed with features specific to the construction industry.
Access COINS turns your data into actionable insights and uses AI to help construction companies control cashflow, uncover efficiencies and automate processes across the construction lifecycle.