The introduction of modern technologies in the construction sector is becoming more and more relevant around the world. This trend is already reflected in Georgia – large construction or development companies have begun to introduce the ERP system, but for a large part of the market its importance and need are still unclear.
The activities of a construction company are related to many different business processes. Risks of inefficiency are hidden in the uncontrolled procurement process, inaccurate accounting of stock movements and expenditures, weak monitoring of project progress, spending money without a pre-defined cash plan, and more. The module developed by BDO covers all the main processes characteristics of a construction company, connects the accounting of current activities at the head office and facilities, and minimizes the risks of inefficiency.
In addition to minimizing working capital losses, the introduction of the ERP system significantly increases the efficiency of human resources. The system integrates operational management and accounting automation. The amount of manual work to be done for both financial and other department employees is reduced and as a result, their function is modified, they become more in control, and instead of spending time on manual work, they are busy evaluating results, analytics, process optimization, and strategic decision making.
The company management team is given the opportunity to look at the activities and results of their company from different angles and perspectives. For example, when a construction company implements various projects, management can see the productivity of the company and various financial indicators in the context of projects, which allows them to make decisions based on very relevant and accurate information. In terms of operational management, the international ERP system, SAP Business One, has quality control mechanisms, which in turn play a major role in process management efficiency.
“The introduction of the ERP system is an investment that will bring income in the future. It is a tool that helps you save company material and human resources and increase productivity. Achieving more with fewer resources naturally leads to increased profits,” says Zviad Oragvelidze, BDO Georgia partner.
BDO has developed the international ERP system SAP Business One especially for the Georgian market and has created its own construction module, which allows the full automation of business processes of companies operating in this sector.
In general, what does the introduction of ERP mean for the company? The introduction of an ERP system is not a unilateral process. The company should be willing to work with the implementation team. Management must have a more or less precise idea of what it wants to achieve with the introduction of the system – what are its main tasks and goals. It is also important for the company to allocate appropriate human resources for the implementation project, as the employees are important persons, who have information about the company’s business processes, who own the data that needs to be transferred to the new system, and so on.
There is a trend in the market, where the companies are introducing the BDO construction module in phases. The root processes are carried out in the initial stages, and deeper automation is achieved in the later stages. Consequently, profit growth largely depends on the current state of the company – with an increasing level of automation, profit increases.
It is interesting to present the benefits of ERP system in the field of construction in digits: we can say that the profit from the introduction of SAP Business One and the construction module in companies in this industry increases by an average of 10% -20% over 2 years. For even more specifics, taking into account the world practice and the specifics of the Georgian market, it is possible to earn the money invested in the introduction of SAP Business One in 1 year, which in turn is a very good output period.