Top 7 Challenges in Engineering Firms and How ERP Can Help

Top 7 Challenges in Engineering Firms and How ERP Can Help

Engineering projects involve complicated tasks and need synchronisation of multiple functional departments. In this fast-paced world and with technological advancements, it is very difficult to keep track of all the processes, systems and manpower involved. Therefore, engineering companies should find a way to overcome all their challenges in an appropriate & organised manner.

ERP software is the most suitable way to help companies in this industry maintain product quality, improve project efficiency, fulfil customers expectations and reduce operational costs.

1. Inventory management

A big challenge for engineering firms is that there are tons of supplies that are needed in the routine process and keeping track manually can become quite cumbersome. With ERP, engineering firms will have accurate information regarding their needs and future projection of how much more will be needed. It will also track real-time data, efficient stock picking and delivery processes.

2. Project Management & Tracking

In engineering firms, the projects are quite time, cost & quality sensitive and hence they need proper tracking and controlled strategies. ERP covers all aspects, from the start of the project to the end. The engineering firms with help of ERP can track the maintenance and support of ongoing orders, job station time recording, sub-contracting, manpower management, resource utility and much more.

3. Financial Management

Huge costs are associated with engineering projects and tracking them on an everyday basis is very important to ensure that the funds are properly utilised and eliminate the waste of financial resources. ERP aids in the management and tracking of all financial transactions of your firm.

It allows you to keep track of your revenue sources through various channels and offers fully integrated functional utilities covering accounts receivable, accounts payable, cash management etc. It also helps to combine all the numbers and track real-time costs, profit & loss, making it easier to identify mismanagement areas. In addition, you will receive detailed and accurate financial reports in real-time.

4. Customer Relationship Management

With so many production processes and day-to-day functions of engineering firms, keeping track of each customer is difficult. Hence, automating the CRM will help better communication, and all relevant data can be stored in a centralised database, which aids in customer segmentation.

5. Staff Management

Employees are the company’s most valuable asset, and they must be well-maintained and compensated in order to achieve the best result. With ERP implementation, staff management will be automated and you can track their performance, calculate their incentive and manage their shifts. It also allows you to store and manage all the employee data centrally.

6. Management of the Manufacturing Process

Engineering ERP software enables us to manage production planning while calculating the material bills, tracking work in progress and overall equipment effectiveness. It also manages the inventory needed for production in alignment with all other departments.

7. Management of the procurement Chain

With ERP implementation, it is simple to complete the procurement task, like purchase orders, request management & tender management. It also streamlines vendor portal, rating & payment milestones.

ERP for engineering firms is highly recommended and Sourcepro offers flexible and custom features to achieve better ROI, improve efficiency and reduce inventory loss. It aids to interconnect all the departments and aids to deploy the available resources in the most efficient manner.

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