If you want to manage a business effectively, you need to track a lot of data. Between budgets, deadlines, milestones, and labor, it’s enough to overwhelm even the most organized managers.
Most modern businesses rely on enterprise resource planning (ERP) systems to manage the massive amounts of data, but sometimes, even that’s not enough.
Businesses are more diverse than ever. They’re always working on new products or services to offer. Traditional ERP systems only give an overall snapshot of the company’s resources.
Many managers need more detailed information to make effective decisions. A project-based ERP system is the answer.
What is a Project-Based ERP System?
Project-based ERP systems are a continuation of traditional ERP systems. What is a traditional ERP system? It’s a system that tracks all the information vital to the operation of your business and puts it in a single, easy-to-use interface. It keeps track of all your enterprise resources to make business planning easier.
Traditional ERP systems focus on the end result of your business processes. Project based ERP software is designed for end-to-end transparency of your business projects.
In a manufacturing plant, for example, a traditional ERP would show end-stage reports for the overall manufacturing process.
A project-based ERP digs deeper into the minute details of the production like labor, inventory, and milestones. This provides a more complete view of individual projects and processes.
Before project-based ERPs, most businesses would track project details in separate spreadsheets and files. Now, everything can be combined in a single ERP system.
In short, project-based ERP systems are simply a more comprehensive form of enterprise resource planning.
Interested in learning more? Check out these blogs:
- What is a JDE System?
- How to Improve Productivity & Efficiency in Manufacturing
- ERP Software Systems for Small to Medium Sized Businesses
Benefits of Using a Project-Based ERP
The primary benefit of using a project-based ERP is the level of detail. It can shine a spotlight on your business processes so you can see exactly where your systems need improvement. Of businesses that implemented an ERP system, 95% said it improved business processes.
Here are some of the features that project-based ERP systems are composed of.
Accounting by Project
Traditional ERPs provide an accounting snapshot of your overall business processes. As the name might suggest, project-based ERPs dig deeper and show accounting information based on the project.
For complex companies with a variety of offerings, the ability to break down finances based on a project can be a lifesaver. You can more easily identify which projects are cost-effective and where you’re losing money.
All this information is automatically compiled, so you don’t have to perform detective work and maintain separate spreadsheets after the fact.
HR Management Capabilities
Project-based ERP systems put a larger emphasis on people compared to traditional systems. Traditional ERP systems focus on processes and tangible goods. While those things are important, people will have a much larger impact on your business.
Labor is one of the most important — if not the most important — elements of any business. A project-based ERP lets you track and manage your human resource information in a single interface:
- Time tracking
Project managers can use this information to identify help shortages and better allocate labor at the project level. Since labor is the most expensive resource in any business, understanding HR trends will help your business run leaner and meaner, increasing your efficiency without raising cost.
Supply Chain Management
Traditional ERP systems focus on the end result. Project-based ERP systems provide an end-to-end look at your entire project lifecycle.
Most project-based ERP systems use supply chain collaboration software to foster communication between suppliers and business partners, and barcodes and RFID scanners help to manage inventory and equipment at each stage of production.
The information is compiled at the end for an easy-to-read snapshot of the entire supply chain. It is easily available to any user with a login to help prevent information loss or miscommunication throughout your organization.
Project Management Tools
The main feature of project-based ERP systems is the ability to break down information at the project level. But they can do more than that; they can help you simplify resource management.
Project-based ERP systems are equipped with tools to help you manage projects better. They can foster team communication, manage deadlines, give the order in which activities need to be accomplished, and show other concurrent tasks that need to be completed.
Project tools can also be integrated with billing, invoicing, and contracts at every stage to make sure your projects stay on budget and on time.
Reap the benefits of a project-based ERP system for your business with help from Corning Data’s team of experts
While project-based ERP systems can provide a more in-depth look into business processes, they are not right for every company. They are best utilized in project based businesses that have several activities going on at once, such as:
- Research teams
- Engineering firms
- Construction companies
- Procurement businesses
- Architecture and design firms
For example, a company that works on a single project at a time, like a small construction company, wouldn’t benefit much from a project-based ERP system.
A traditional ERP system would essentially break down their enterprise resources based on project because there would only ever be one project in the system at a time.
However, a large construction company that works on multiple projects simultaneously, would be a perfect candidate for a project-based ERP system. They could track and manage the minute details of each project individually to more efficiently allocate their resources.
Corning Data: Your Trusted ERP Experts
Enterprise resource planning isn’t an easy task. Even with ERP systems, there’s so much information to manage that it can quickly become overwhelming.
If you need help choosing, implementing, or managing the perfect project-based ERP solution for your business, trust the experts at Corning Data. We’ll take the time to learn about your business and offer customized IT solutions to help you reach your business goals. Contact us today to get started.