Buoyed by the fast-growing economy, Engineering Services and Project Consulting companies across sub-segments like Electrical, Mechanical, Electronics, Construction, Architectural is experiencing unprecedented business opportunities. However, those opportunities may be missed if a company doesn't have the right systems to accommodate advanced project management, accurate financial reporting, and growing customer/vendor demands for real-time data exchanges. The goal of ERP is to support one time entry of information at the point where it is created and to make it available to all the participants within the organization. The engineering industry is a highly fragmented industry. It needs to communicate on a large scale with other related businesses such as material and equipment suppliers, vendors, subcontractors and clients. ERP systems are being used by companies to improve responsiveness in relation to customers, strengthen supply chain partnerships, enhance organizational flexibility, improve decision making capabilities and reduce project completion time and lower costs. These information systems are designed to integrate and partially automate many of the company’s business processes such as human resources, financial management, manufacturing, procurement, construction, operations and maintenance. These companies execute a wide range of projects across industry verticals which make it important for them to adopt best practices. The project engineering companies face challenges related to project and material management. With every new project that is won by project engineering firms, post analysis and requirement scoping, a detailed design and component selection is undertaken. A Bill of materials is then created which goes to the purchase department wherein it has to be logged in against the specific project. In such a complex scenario there is a major challenge in material management, tracking and planning. Also since there are various costs to be incorporated into the project billing, such as material cost, time cost of man-hours spent by personnel from multiple departments. The billing process is also quite complex as invoices need to be raised at any phase of the project. Key Features â€Budget and Actual for material, labour, revenue and other expenses is essential and require strong material management. The Project Job Costing module of ERP enables companies to do efficient material management, keep inventory costs under control and streamline material procurement process. â€ERP cost tracking capabilities ensures accurate tracking of various cost elements relating to people, material and travel. Since it automatically tracks the project cost throughout its life cycle, it allows the managers to keep track of project profitability at all times. â€Tight integration of the Project and Job Costing system with finance and purchase functions benefit to evade duplication of entries and ensures accuracy of data. â€Also the automated billing features in the job cost accounting software. â€Streamlines customer invoicing so that there are no leakages in the billing. Project Engineering businesses in particular rely on robust processes, supported by specialized technology, to define scope and manage projects from initial bid to project completion. To manage customer expectations for projectsâ€"including time, materials, and laborâ€"engineering companies need to optimize operational processes. A robust ERP solution enables you to streamline processes; give all project stakeholders deep visibility into centralized, real-time information; and fuel collaboration that leads to winning results.
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