The freedom and globalization of the modern market have opened more opportunities for customers and business partners to choose from. While fierce competition encourages the development of construction businesses, it also makes it increasingly difficult to remain competitive, and the construction industry is no exception.
Optimized Supply Chain Management
To increase the value of your construction company, you may consider one of two main approaches: increasing the quality of your services or offering more attractive prices. While it is often not possible to combine both strategies, using modern enterprise resource planning (ERP) and customer relationship management (CRM) systems like Microsoft Dynamics 365 for construction businesses will help you achieve this goal.
Although a construction company’s supply chain may not be the same as that of a manufacturing company or retailer, it is the heart of your business. The success of each of your projects depends on supply chain management, which should be flexible enough to adapt to the ever-changing market conditions.
Microsoft Dynamics 365 for construction, specifically its supply chain management application, centralizes scattered processes, operations, and data related to your project. With it, anyone engaged in the process, whether an employee, contractor, or supplier, will get easy access to all the information they need, updated in real time.
This solution helps you handle the complexities of procurement for a new project, warehouse management, equipment and vehicle maintenance, and transportation of materials and contractors. Microsoft Dynamics 365 SCM makes it easier for you to estimate the exact amount of materials needed for construction and perform conservation procedures for your machinery, so your company does not have to face expensive downtime.
Improved Financial Management
The construction industry, like any other business, needs efficient financial management. The operations module of Microsoft Dynamics 365 for construction companies can successfully solve this task.
This application combines essential features that simplify accounting tasks. With a user-friendly interface, real-time data updates, flawless data flow, and extensive automation options, your employees can save a lot of time-consuming repetitive tasks and increase the quality of their work, as they can avoid error-prone work.
At the same time, Microsoft Dynamics 365 Finance is a sophisticated tool that can be used for financial forecasting. In addition to traditional statistical insights, companies can leverage artificial intelligence and uncover hidden trends in their financial data. This is one of the advantages of such software that can give your company an edge over the competition.
Moreover, Microsoft Dynamics 365 financial application can help your business meet foreign requirements. This software is designed to help businesses that are entering new markets, especially when it comes to adapting to different legal requirements related to taxes, as well as document forms for invoices and banking transactions.
Enhanced Data Security with Microsoft Dynamics 365 for Construction
Although the benefit of implementing a sophisticated ERP and CRM system like Microsoft Dynamics 365 for construction is less obvious, its importance cannot be overlooked.
Data is essential to the operations of any company from any industry, as it supports all business processes. As mentioned earlier, modern ERP software can increase a company’s efficiency through seamless data flow, but such suites can also provide advanced protection for your information.
On the one hand, ERP systems, especially in the cloud, are equipped with the most advanced cybersecurity solutions, which are constantly updated to further improve data protection. On the other hand, cloud ERP systems such as Microsoft Dynamics 365 for construction help protect critical data from other risks, including any factors that may affect data stored on physical devices. The backup functionality of such software helps you recover data that would otherwise be lost forever if you relied on physical storage devices.
Leading Construction Companies Leveraging ERP Systems
Large construction companies seem to have already taken a top position in the market, but in reality, it is even more difficult for them to compete with others. That is why they all rely on modern ERP systems.
One of the largest construction companies in the USA, Turner Construction Company, which employed 10,000 people and had revenues of $14.41 billion in 2020, is one of the outstanding examples of a large company that relies on ERP software.
Sweden-based multinational construction company Skanska, which had an even higher 2020 revenue of $17.2 billion, also uses an ERP system to manage its finances and supply chain.
DPR Construction, a California-based construction company with 9,000 employees and revenues of $6.8 billion in 2021, is another example of an industry leader that has increased efficiency with an ERP system.