How Odoo ERP Technology Can Help Construction Companies Fight Inflation

If asked to name the most important hurdle going through the construction industry at present, construction professionals likely will say there’s more than just one, but the problem that’s currently on everybody’s minds is actually inflation.

Barnett also listed a couple of eye-opening statistics (as of March 2022):

• The Producer Price Index (PPI) rose 22% final yr.
• Fabricated structural steel products climbed 42%.
• Iron and metal increased by 87%.
• Steel mill products rocketed to 127%.
• And softwood lumber saw a spike of 24% in December alone.

With soaring costs, how are construction companies anticipated to make a revenue? The answer is by using modern technology — however not just any technology.

They should consider industry-specific cloud construction management software, akin to an award-winning Cloud ERP solution, like Odoo.

3 Ways to Fight Inflation with Odoo

Understanding how Odoo construction software may help construction companies overcome incredible obstacles — each present and future — begins with understanding what development ERP software is and what it does.

Construction ERP software is software program that’s purpose-built for development professionals. It empowers companies to manage major elements of their enterprise from financials, gross sales, and stock to subcontractor and buyer relationship administration. Since development ERP is cloud-based and acts as a single-source-of-truth, information is available in actual time and accessible by employees within the office and out within the field.

So how does Odoo Construction ERP assist construction companies fight inflation? Read on to find out.

1. Financials and Reporting

With Odoo ERP for Construction Industry, construction professionals have standard financial processes and reporting capabilities available out-of-the-box in addition to the choice to customize studies to go well with their distinctive wants and challenges. Having the flexibility to successfully handle financials with customary in addition to customizable studies retains accounting information entrance and middle and totally accessible in real-time.

Construction professionals now not must estimate an image of their monetary well being. Instead, their financial data is readily available and easily accessible, which makes it simpler for enterprise leaders to make strategic selections that may have an effect on their company’s financial well being. And with inflation inflicting will increase to materials costs and with margins shrinking, enterprise decision makers want monetary tools they’ll depend on.

2. Job Costing

Job costing is a time-intensive task encompassing the tracking of material, labor, and overhead costs of every construction project. Many development companies have often relied on outdated or siloed systems leading to inefficient handbook processes or outright information inconsistencies and errors. Implementing Acumatica’s cloud construction administration software helps construction corporations eliminate costly accounting errors and permits construction accounting professionals to successfully track costs and keep projects within the green.

With inflation at a file high, accurately managing job costs is more important than ever. Being able to track prices in real-time provides project managers with the insights they should make enterprise selections which have the potential to impact profits, earnings which are already reduced by inflation.

3. Inventory Management

Managing inventory is likely one of the most complex elements of any enterprise and becomes much more so when companies depend on disconnected solutions, manual processes and error-prone spreadsheets. The resulting inefficiencies and inconsistencies negatively impact employee productivity and may affect profitability.

As with job costing, implementing Odoo’s construction enterprise management software eliminates ineffective inventory methods and allows construction professionals to automate their stock management needs, together with replenishment, location management, inventory valuation and more. Further, Odoo’s mobile app provides construction businesses with 24/7 access to their inventory data, giving them full visibility into their inventory and the flexibility to update and monitor their inventory whether they’re in the office or out within the field.

As inflation continues to raise the stakes for the construction industry, successfully manage inventory — thus, reducing waste, improving accuracy and increasing customer satisfaction — is a critical part to succeeding in as we speak’s unpredictable economy.

Succeeding with Cloud Construction Management Software

Ultimately, Odoo’s cloud development management software’s financial/reporting, job cost accounting and inventory management capabilities are exactly what construction companies working in at present’s economic system need to succeed.

Apagen’s Senior Director of Product Marketing Gaurav Kumar addresses the benefits of cloud-based ERP solutions noting that organizations may have:

• Planning and forecasting capabilities for managing inventories/assets, supplier deliveries, and manufacturing schedules.
• The data and adaptability vital to regulate to changing circumstances.
• The capability to investigate data, assess operational constraints, and decide different solutions.

Apagen can verify these benefits. With over 12 years in ERP consulting and as a certified Odoo implementation partner, we all know Odoo can help construction companies jump over the ongoing financial hurdles. Efficient and effective management, automated processes, a single source of truth via a completely integrated solution all add up to critical cost savings, which can hold them in good stead as inflation woes proceed for the foreseeable future.

To learn more about Apagen and Odoo, contact our experts with any questions or to schedule a demonstration. We’d love to talk.