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What Is An ERP? Definition And Functionalities

Are you tempted by the use of an ERP for the management of your sites? Indeed, ERP software packages are gradually creating a place of choice in construction tools, thanks to their practicality, ease of use, and high performance.

But how do they work? What are they used for, and what are the different features you can take advantage of? If you are curious to know more, continue reading our complete guide with the bonus of a list of ERPs that could meet your building needs!

Definition of ERP

The acronym of ERP stands for Enterprise Resource Planning in English, translated as enterprise resource planning. An ERP software can also be qualified by the PGI logo, which stands for Software Integrated management services.

Therefore, it is a tool for managing the activities of a construction company daily: you can check each information in real-time and update it if necessary. Very secure, ERP is an information system that facilitates monitoring work, the management of quotes and invoices, customer support, stocks, and purchases, etc.

This type of software package is particularly well suited to the building trades and site monitoring, thanks, for example, to its planning management functions, simplification of accounting, monitoring of the tally of hours, and the various sub-tasks. I was treating people. Any decision can then be made according to the company’s current situation and the site.

The difference with a CRM

What is the difference between an ERP and a CRM? ERPs can contain a CRM (Customer Relation Management) module relating to sales, human resources, or even customer service.

In contrast, an ERP software package is more complete since it offers a solution encompassing finance, manufacturing, and logistics. Therefore, the range of functions is more comprehensive, making it possible to cover each construction company’s needs better. Generally, most craftsmen then decide to use CRM software in addition to an ERP to centralize their data and improve their customer knowledge.

Also Read: ERP Software And The Accounting Management Of Your Company

What is ERP software used for?

Benefits of setting it up

Why use an enterprise resource planning software package? An ERP has many advantages for the planning and management of construction sites, of which the following is a non-exhaustive list:

  • Optimized site management: an ERP is a project management tool. Therefore, it makes it possible to manage better the various stakeholders and the various stages of the site. ERP BTP software facilitates the forecasting, planning, and control of work. Whether for upcoming or current actions, you eliminate time-consuming tasks from your daily life. You save time, money, and therefore you become more profitable than your competitors.
  • Better working conditions: ERP software is a fluid and ergonomic working tool. You can easily navigate between the different functions and adapt the modules to your needs. All your data is centralized, from your accounting to the management of your purchases and equipment. Information is easily identifiable and infectious, which allows all employees to become more productive, autonomous, and quick.
  • Increased profitability: since an ERP helps you save time, it allows you to improve your margins. You can compare your initial costing with your actual expenses and thus optimize your following actions. This will enable you to adjust your budget, improve positions or even review your rates. This monitoring software package offers reporting functions for rapid and complete analysis of your work.
  • Increase in productivity: the 3 points mentioned above all lead to the same result, increasing your overall productivity. Each employee can communicate effectively with the others, maximize their working time and eliminate tasks with no real added value.

Main features ERP

An ERP can be condensed into 6 main functionalities. These are then all embodied by different tools or solutions depending on the software chosen. But overall, all ERPs allow you to take advantage of the following services:

  • Production: ERP software can help you efficiently plan output, along with materials and raw material management. It is possible to forecast demand and take into account your production capacities to maximize your actions.
  • Project management: good daily project management is essential to obtain better productivity. If you have several projects in progress, you can see the progress of each project at a glance.
  • Accounting and finances: thanks to the financial management function of an ERP, you can have a global vision of the activities of each department. You manage your budgets, your deferrals, your compatibility via analysis and monitoring tables grouping your customer and supplier invoices. You also have access to cash flow forecasting and cost accounting tools.
  • Logistics and inventory management: supply and inventory management is crucial for the success of your projects. You can manage your payments, your deliveries, your returns, or even carry out your inventory.
  • CRM Sales: By adding a CRM, you can easily add a sales and marketing dimension to your ERP software. This will make your marketing strategies more relevant and your customer service more efficient.
  • Human resources: the last primary functionality of an ERP is managing human resources, whether for internal or external stakeholders. Your human needs vary from one site to another, and an ERP allows you to plan and manage your team in real-time.

Also Read: What Is ERP Cloud Software And Its Advantages?