ERP IN

CONSTRUCTION
SUPPLY CHAIN
MANAGEMENT

Submitted to,
By ,
Mr. Omar Bashir
Ajay kumar S V
A13559016135
MBA -SEC E
 Enterprise Resource Planning System
(ERP)

“ System or software that is used to manage all

the resources of whole enterprise.”

SCM “involves demand & supply

management , sales returns & replacing
process, shipping & transportation tracking
etc.”
Key Observation in any Enterprise
• A typical Enterprise has many Departments or
Business Units(BU).

• These Departments or BU continuously

communicate and exchange data with each
other.

• The success of any organization lie’s in effective

communication and data exchange within the
departments/BU as well as associated third party
such as Vendors, Outsources and Customers
Enterprise software systems –
 Decentralized System
• Data is maintained Locally at the individual departments.
• Departments do not have access to data of the other
departments.
 Decentralized System
• Data maintenance and HR costs increases.
• Integrating the data becomes time &money consuming.
• Lack of timely information leads to customer dissatisfaction,
loss of revenue and repute.
 Centralized System-ERP
• Data is maintained at central location and is shared with
different departments.
• Departments have access information/data of other
departments/BU.
ERP in Construction SCM
ERP in Construction SCM
 Benefits of ERP in Construction SCM
• Sourcing & Procurement- optimized inventory management
to reduce capital expenditure and to ensure that all ongoing
projects go smooth and effectively.
• Purchase Orders & Vendor management - automate
purchase order creation, approvals, payments, performance
management for vendors.
• Streamlining Logistics & Warehouse – to manage logistics
and warehousing, ERP will track multiple warehouse
locations, transportation channels and streamline logistics for
Projects.
• Vendor Performance –gives the opportunity to track vendor
performance through metrics such as cycle time, cost, error
rates and more to justify switching vendors.
 Benefits of ERP in Construction SCM

• Economies of Scale - Knowing how much, where and when

the organization spends can be an unbeatable point of
leverage in price negotiations across the supply chain.
• Better control over various business processes.
• Better customer interaction and better customer service.