Wednesday, June 19, 2024
ad
HomeNewsWhat Is Project-Based ERP? Overview, Benefits & More

What Is Project-Based ERP? Overview, Benefits & More

Companies may increase project efficiency, manage project financials and accounting, and track real-time online inventories using FirstBit’s Project ERP software.

When developing a project-based business, data is a crucial metric to keep in mind at all times. What better way to control and manage your company’s data and information than to use a project-based ERP system?

FirstBit is a leading ERP in the UAE that provides a range of IT services and solutions that help businesses grow. FirstBit services are accessible as on-premises or cloud-based ERP software for all contracting and distribution enterprises. They assist these organizations in streamlining core processes and increasing departmental cooperation.

Companies may increase project efficiency, manage project financials and accounting, and track real-time online inventories using FirstBit’s Project ERP software. Additional features include a comprehensive reporting tool that can deliver real-time reports whenever and wherever they are required. Real-time project costing data, automation of all HR and payroll procedures, and complete automation of sales procedures to ensure they can provide lucrative contracts.

What Is Project-Based ERP?

What is Project-based ERP?

Image source: QAD

Project-Based ERP is an enterprise resource planning system developed for businesses or companies that value projects as a significant aspect of their operations. A project-based ERP system manages and integrates a company’s financials, supply chain, operations, and human resource activities, as well as the distribution and flow of information across departments. It can also be called an information management system.

Project-based enterprise resource planning systems are more detailed and complete than traditional ERP systems. Project-based ERPs should boost the success of projects and businesses’ overall growth. They also assist organizations in streamlining and automating their project management procedures. This prevents projects from being delayed and enables the establishment of effective resource management workflows.

Companies value project-based ERP systems because they aid in resource planning by integrating the processes required to run their company into a single system. Project-based ERP can be deployed as an on-site or cloud-based ERP system. 

Still, cloud-based ERP software is preferred nowadays since it connects and ties many business processes inside a company to ensure everything runs efficiently. The overall goal of project-based ERP systems is to improve a company’s growth and profitability. Project-based businesses include those in the construction, manufacturing, education, healthcare, retail, and other professional services industries.

Why Project-Based ERP Systems?

When businesses that value projects as an important aspect of their operations want to execute, most financial and corporate advisors recommend project-based ERP systems. But why is that? Traditional ERP systems are still in use and have a lot to offer, but why should you choose project-based ERP systems?

One of the key factors is that project-based ERP systems have project-based KPIs to support organizational and project goals, which come with comprehensive accounting information for the project. 

As you have to decide based on real-time information generated by these systems, project-based ERP helps businesses maximize productivity and revenue.

Another reason, among many others, is that the expense framework is customized for each project at the right time. It also serves as a resourcing tool, informing project managers about what resources and skills are available at a particular time and for a particular project.

A Project-Based ERP System Should Have the Following Features

Features of an ERP system.

Image source: Informatics system.  

While it is widely acknowledged that project-based ERP solutions are the most effective for project-based organizations, the following explains what ERP features and benefits you should look for in project-based ERP systems. 

1. Project Management 

Different processes may be centralized and integrated using project-based ERP systems. They provide a well-balanced schedule, attainable milestones, and the resources to implement the essential operations of several departments within a corporation necessary for a project’s execution. Budgets, activities, and their logical sequence are all disclosed, together with the resources needed to carry out time-based activities and other tasks that will be completed concurrently.

2. Human resource management (HRM) 

A project-based ERP system preserves personnel data in an automated format, allowing project managers to assign work more quickly. This software also assists throughout the following processes: recruiting, training, resource planning and management, payroll, time tracking, and attendance tools. 

3. Customer relationship management (CRM)

An ERP system for project-based businesses has to include a CRM that supports managing, tracking, and forecasting opportunities. Project-based ERP is appropriate for the extensive client cooperation and relationship-building that define project-based industries. In planning future initiatives, for instance, it is important to identify weak points in the sales cycle and the clientele that frequently returns.

4. Procurement

The project-based ERP system must manage raw materials or completed items from planning through approval, procurement, shipment, and receipt. Businesses don’t have to enter POs into separate systems when purchasing resources integrated into their project management software. The system can automate invoices and payroll in the ways you choose, reducing over-and under-buying. 

5. Inventory management

Inventory management is critical to project-based systems, and the system should display current inventory levels down to the stock-keeping unit level and update those quantities in real time. Project-based ERP systems enable businesses to handle inventory, allowing them to stockpile enough to satisfy projected requests. They also track crucial inventory data.  

For Which Types of Businesses Are Project-Based ERP Solutions Most Efficient?

Companies should adopt project-based ERP solutions to manage their businesses effectively because they bring significant improvements in multiple areas. The businesses that benefit the most from project-based ERP systems are listed below. 

1. Construction

Construction companies revolve around projects. Many processes are involved in developing a construction project, such as asset management, scheduling, bidding, project management, and contractor management. With the help of ERP for construction industries, these various tasks and activities can be integrated into one complete solution, where businesses have all the tools to manage a project’s full lifecycle.

The construction industry’s project-based ERP allows you to use it however best meets your needs. These systems assist construction organizations in streamlining their operations through automated processes. Other advantages of employing ERP software include accurate project planning and analysis, cost estimation, and income generation. Project-based ERP systems are essential to construction projects, and if unanticipated events occur, the lack of project-based ERP might harm the project.

2. Manufacturing

ERP systems that are project-based make a complicated process easy. Project-based ERP software offers a wide range of advantages in the manufacturing industry, including reducing total operating expenses for manufacturing firms. These project-based ERP systems enhance a manufacturing company’s decision-making ability by offering extensive insights and visibility into every organizational division. 

Besides, a project-based ERP system improves a company’s competency, increases production, and aids organizations in maintaining positive client relationships. 

Manufacturing firms that adopt project-based systems also benefit from precise production planning and enhanced inventory management. These benefits, coupled with optimized process scheduling and well-coordinated distribution networks, help increase product on-time delivery. Communication between the many departments of the business, including accounting and finance, procurement, production, and operations, is simple.

3. Education

Academic and research institutes may find a project-based ERP software system to be a useful resource. 

It is helpful in that it may digitize administrative tasks, minimize paperwork to the absolute minimum, and unify the whole educational facility, centralizing the information to make data administration easier. The project-based ERP system can manage enormous data volumes and create bulk reports. 

In addition, it helps manage internal and external resources and control operations like payment of fees, libraries, student registration and administration, courses and curriculum, examinations and results, and more. All contribute to enhanced productivity and improved performance.

4. Hospitality  

A project-based ERP system can assist businesses in the hospitality industry in establishing a comprehensive management system. There are many difficult-to-manage jobs in the hospitality industry, and project-based ERP helps to automate these processes. Examples include managing inventory, overseeing and planning employee schedules, scheduling client appointments, and operating the front desk efficiently. 

Project-based ERP software’s automated workflows can help you save time and feel less stressed. The hospitality industry may use ERP software to maintain all critical information in one place, reducing duplication and contradicting data such as double-booked rooms. Real-time monitoring of all activities and services is possible with project-based ERP systems.

5. Healthcare

The healthcare business has developed rapidly over the years, and project-based ERP has been a key contributor to that growth. Project-based ERP solutions have always aided this economic sector with costs and regulatory requirements. A project-based ERP system integrates data from many healthcare departments to build a single database and enables medical professionals to make prompt choices. 

With the help of this system, hospitals and other healthcare facilities may efficiently manage their financial aspects and handle the easy sourcing and purchase of necessary equipment and facilities. Healthcare organizations can save on inventory and administrative expenses by using a project-based ERP software solution. Other benefits of using ERP software in the health sector include increased patient safety, simple access to medical records, and patient confidentiality.

6. Retail

Project-based ERP is now a crucial component of the retail sector. The retail industry’s system is useful for meeting rising client expectations. Project-based ERP enables diverse departments in an organization to communicate information in real time, ensuring that all business operations function smoothly. 

A project-based ERP system provides a dependable, easy, and efficient management solution for checking warehouse levels in real time, allowing businesses to verify proper stock levels. Customers and business owners will always know which products are in stock and which need to be restocked. Also, project-based ERP systems improve communication between suppliers and business partners through supply chain collaboration software.

Conclusion

There it is — a thorough explanation of project-based ERP systems and the industries they are useful for. They offer a well-balanced structure that makes it easier to manage and integrate their key operations while boosting productivity. Even though project-based ERPs are effective, businesses must determine whether these systems are compatible with their various tasks and activities before implementing them.

Subscribe to our newsletter

Subscribe and never miss out on such trending AI-related articles.

We will never sell your data

Join our WhatsApp Channel and Discord Server to be a part of an engaging community.

Sahil Pawar
Sahil Pawar
I am a graduate with a bachelor's degree in statistics, mathematics, and physics. I have been working as a content writer for almost 3 years and have written for a plethora of domains. Besides, I have a vested interest in fashion and music.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular