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ERP for Construction Industry

01.30.2019

ERP for Construction Industry: Building material manufacturers comprise a large segment of the construction industry. Their processes are inclusive of inventory management, finance management, production, sales, purchasing, and warehouse management.  Thus, their requirements are as unique as any other industry. So are their limitations like the management system, loopholes, and procedural overlaps. 

ERP for Construction Industry


ERP for Construction Industry: Building material manufacturers comprise a large segment of the construction industry. Their processes are inclusive of inventory management, finance management, production, sales, purchasing, and warehouse management.  Thus, their requirements are as unique as any other industry. So are their limitations like the management system, loopholes, and procedural overlaps. 

ERP helps meet these unique requirements and counter limitations, by streamlining the process ensuring it is error free. Customized ERP for Building Material Manufacturers, are a combination of modules of sales, material management, accounting, purchasing, production planning & scheduling, costing and overarching modules.
Tailor-made software considering client need
ERP is an independent software, which can be run across several platforms. It helps in maintaining accurate real-time information. Being independent of a platform makes it easy to integrate with several modules. Following are the module groups and details, which can be more or less utilized by a building material manufacturer. 


Material Required Planning 
MRP is the core of all production processes. It features real-time material inventory status, order sizing methods, planning keys, determination of conclusive and real supply chain. It helps to estimate material movement between different processes, keeping material plans up to date, special order planning, implementation of plans created, matching requirement and supply documents.

Warehouse Management planning system 
WMS supports the manufacturer in material movement and easy automatic management of warehouse movements. It features are defining warehouse conditions, recommendation for warehouse addresses, mobile working capabilities, taxing capacity constraints, warehouse capacity optimization, and defining user-based transaction rights. 

Production scheduling 
This module optimizes the production processes. It creates all production documents, does detailed planning, and atomizes production simultaneously using other operations.

Capacity planning 
Capacity planning allows the manufacturer to schedule production according to client’s requirement, inventory and plant status. It allows visualization of the real-time status of the plant, maintains data uniformity and transparency. In addition, it schedules and compares production orders, defines capacity and priority rules, does activity comparison analysis, capacity usage, and resource scheduling,. Besides, it even overviews information capacity and informs about bottlenecks.

Production costing 
It includes cost calculation of manufactured products. It covers features like raw material cost, activity cost, and invoice details. It features a highly integrated system, raw data analysis, costing integration, verification integration, periodic calculation of product costs, transfer of costs, wide operating capacity, and consistency checks. 

Purchase 
This module optimizes supplier relationship, governs material procurement and also offers relative cost reports. 

Sales 
Deals with documentation regarding the sale of products and are inclusive of generating invoices. The documentation deals with inventory, pricing, order procedures, and cost analysis. 

Budgeting 
This module covers sales planning, financial planning, and reporting. Further allows easy dissemination of planning to subsequent modules. For this, it integrates with other modules making way for smooth functions. It features sales and production planning.

Costing 
This module allows generating and record upkeeping of cash inflow and outflow of the company. It goes for direct integration with financial accounts and production confirmation records. It features distribution keys, cost centre hierarchy, comprehensive reporting, and activity unit price calculation.  

Business intelligence 
In this module, data is quickly accessed, analysed, evaluated multi-dimensionally, and prepared visually. It allows minimized manual inference.

Human capital management 
Helps companies on managing human resources across different departments. It features corporate planning, employee selection parameters, employee registration card, payroll management, training management, employee self-service, manager self-service, HCM report wizard.

It is clear from the above discussion that ERP is easy to customize and can be very useful for building material manufacturers. Also, the various modules discussed can help the manufacturers gain utmost use of their resources. Moreover, it makes management easy to handle with streamlined processes, maintained transparency, accurate work, and minimal errors.   

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