How ERP Software Helps You Identify the Most Profitable Jobs

making profit through erp software

In the construction industry, it’s tempting to accept every job that comes your way, whether you know if it’s good for your bottom line or not. It’s not always possible to avoid the mistake of taking on more projects than your business can handle or taking a job that ends up eating into your profits.

But by using an industry-specific ERP software solution instead of generic project management software, you will be better able to identify and choose which jobs are most profitable for your company and which jobs you should just let pass by.

Job Costing

Supply, material, freight, and transportation costs can fluctuate rapidly in today’s economy. Time and labor costs can change unpredictably anywhere along the production process. Instead of playing catch up, remain ahead of the curve.

ERP software is essential to obtaining and keeping track of current pricing. It will aid you in making proactive decisions that will benefit both your business and your clients. Knowing exactly what it costs to complete a job will help you be fair in your pricing and accurate in your forecasting.

Although no two jobs are exactly alike, a saved history in your ERP system will help you develop quotes faster and with less effort. You’ll have the ability to develop and view both specific and overall job costs.

ERP software will also do the following for you automatically:

  • Estimate the number of hours a project will take to complete.
  • Identify the machines, tools, and workforce required to achieve maximum productivity and profit ratios.
  • Create a route for the job.
  • Send a quote to a potential client.
  • Allow seamless communication and collaboration across team members and departments.
  • Keep your records secure.

By keeping close track of every detail, ERP software can help your company achieve profitability by reducing the following budget-sucking items:

  • Undue overhead
  • Costly inventories
  • Spoilage
  • Bottlenecks and job delays
  • Input errors
  • Work duplication

Production Scheduling

More than just a production scheduling system, ERP software has powerful capabilities that will lend your business sure footing in today’s competitive market.

With the option of both forward and backward scheduling, project deadlines will be met. Pre-programmed machine workload capabilities and work labor capacities help with route planning and job scheduling. Flexible scheduling allows you to respond proactively to sudden changes in due dates, inventory, or customer demands.

By seeing where you stand at any given moment with every project, it is possible for you to determine the impact on timelines, workload, and revenue when a new project is added to the schedule.

Profitability Tracking

The manufacturing industry is increasingly competitive and has constantly fluctuating costs. Details can shift many times throughout the duration of a single project.

With ERP software you will have up-to-the-minute profit tracking potential. You won’t need to make assumptions. You won’t need to wait for answers. Any time of day and from any location, you’ll have 100 percent visibility into every job individually and as a whole.

More than just keeping track of tangible costs, ERP software also tracks other vital details that will keep your company on the path to profitability. These details that will help save you money include the following:

  • Lower administrative headcount
  • Built-in audit trail
  • Certification process tracking
  • Document compilation
  • Report generation

With a solution tailored to the manufacturing industry, ERP software has no limitations. Get the visibility, forecasting, and accountability your company needs in order to stay competitive in the current market while allowing the flexibility and power to scale your business for the future.  

Implement and use ERP software today and be a more profitable business tomorrow.