ERP for Engineering Firms
The engineering industry is one of the world's most complex and fast-paced industries. With multiple disciplines, hundreds of projects and a wide variety of stakeholders, keeping track of all the moving pieces can be difficult.
One key advantage of an ERP system is that it can help engineering firms keep track of all their projects, clients and resources in one place. By centralizing all the data in one location, firms can easily access the information they need when they need it. This helps them remain organized and efficient, as well as reduce errors or delays caused by miscommunication.
What does an ERP Software Solution Do?
An Enterprise Resource Planning (ERP) system is an integrated suite of software tools designed to automate business processes across departments such as accounting, project management, operations and business development.
An ERP software solution helps engineering firms streamline their operations and make better use of their resources. It offers an integrated system that allows for all the necessary data to be collected, stored and processed in one place. The solution is designed to help the firm manage its projects, finances, human resources and client relationships more efficiently. It can also provide analytics that allows the firm to make informed decisions and optimize its operations.
Benefits of an ERP Solution for Engineering Firms
An ERP solution can provide engineering firms with a range of benefits, including:
- Centralized data management: ERP systems provide a centralized database that allows engineering firms to store and access project data in a unified manner. This reduces data redundancy, improves data accuracy and ensures that everyone across the firm is working with real-time information.
- Improved project management: Engineering projects often involve complex tasks, timelines and resource allocations. ERP software helps in project planning, scheduling, resource management and monitoring project progress. This leads to better project control, increased efficiency and the ability to meet and monitor deadlines.
- Financial management: ERP software provides financial tools that allow engineering firms to manage budgets, track expenses, handle invoicing and generate financial reports. This helps maintain financial transparency, supports compliance and facilitates better decision-making.
- Resource optimization: ERP software helps firms identify overburdened and underutilized resources with dashboard color-coding for instant visualization. It allows you to quickly adjust to project demands by reassigning and rescheduling resources in a few clicks. In addition, the solution can identify resource gaps, skills gaps and future resource needs so you can deliver projects on time and on schedule.
- Scalability: As engineering firms grow, their operational needs evolve. ERP systems are designed to be scalable, allowing firms to easily expand their usage as the business grows without significant disruptions.
- Business intelligence and analytics: ERP systems often come with built-in reporting and analytics tools that provide valuable insights into business performance. This data-driven approach enables engineering firms to make informed decisions, identify trends and continuously improve their processes.
- Improved project profitability: Project profitability is an essential component in any business – one that must be closely monitored to ensure it remains efficient and on track. One of the best methods of tracking and managing project profitability is accurately capturing time and expenses against the project. By doing this, engineering companies can ensure they are billing accurately and adequately for expenses incurred. To help with this process, firms can easily capture these costs from the office or the field – giving them a clearer picture of their project's overall success.
In addition to regularly monitoring time and expenses, businesses should also measure key performance indicators (KPIs) in real time to determine profit margins for each project. With up-to-date information regarding expenditures, revenue, labor costs, overhead costs, etc., companies can drill down into a true picture of their projects' performances, ensuring all efforts are working favorable outcomes in terms of profit margins. This information will also allow companies to adjust project goals and allocations as needed midstream for maximum returns on investments (ROI). - Increased visibility into project financials: Gaining better visibility into project financials is essential for ensuring smooth and successful operations. With accurate invoice tracking, companies can reduce delays and get optimal control over aging invoices. Automated revenue calculations and allocations on a project-by-project basis make the process easier and more accurate. Businesses can leverage this data to spot potential trouble spots early on while also getting the full picture of their financial performance with up-to-date insights. This allows for greater insight into how much money is being spent, how projects are trending in terms of profitability and an overall view of the bottom line.
- Ability to boost client satisfaction: One of the best ways to ensure your clients have a great experience with your services is by assigning the most compatible and capable resources to their projects. Such resources should possess the necessary skill set, experience and availability to ensure the best possible outcome for every project. Real-time project reporting enables you to keep a close eye on all aspects of progress so that there are no surprises when it's time for delivery. Keeping up with project timelines and budgets can further enhance client satisfaction.
By carefully selecting and managing resources for each project, you'll be able to offer improved customer service and build stronger relationships with them over time. Doing this helps you create an environment where clients feel comfortable voicing any concerns or issues they may encounter. At the same time, staying up to date on reports will enable you to quickly identify challenges before they disrupt long-term goals, ensuring modifications are made if needed without impacting client satisfaction.
Make Better, Faster, Smarter Decisions with Deltek ERP for A&E Firms
Improve your ability to manage projects from planning to invoicing.
Wade Consulting Transforms Project Management with Deltek
Wade Consulting, a dynamic building science and structural engineering firm based in Edmonton, Canada, embarked on a journey to streamline its operations. Currently comprised of 20 dedicated employees and growing, the firm specializes in structural engineering and building envelopes, a crucial component that protects buildings from the elements.
The Challenge of Transition
When Julien St-Pierre, Principal at Wade Consulting and his partners took over an existing firm in January 2022 and rebranded it as Wade Consulting, they discovered the company relied heavily on spreadsheets to run complex projects, which was a cumbersome and limiting approach. The need for a more robust solution became evident. Initially, they turned to Intuit QuickBooks® as a temporary solution but quickly realized its limitations. Within eight months of opening, the firm realized that QuickBooks was limited in project management capabilities, which was key. They needed another solution ─ one that could scale with the firm whether they grew to 50 or 100 employees.
Today, Wade Consulting leverages Deltek software for project and financial management. The firm can now gather extensive data, allowing them to provide clients with comprehensive insights, including project breakdown by phases and project completion percentages. This newfound clarity results in fewer client inquiries and more detailed invoices, offering clients a better understanding of project costs. In addition, the Deltek solution provides better insight into where the firm's money is being spent, helping Wade to make better financial decisions.
Thanks to Deltek software all project and financial data can be stored in one place. Previously, administrators were helping with aged accounts receivable; now, this process is seamless and payment schedules are integrated into the same platform, saving time so admins can focus on other general office management activities.
What Should You Look for When Buying ERP Software?
When engineering firm leaders are involved in the process of selecting an ERP system for their organization, they typically consider several key factors to ensure that the chosen system aligns with the specific needs and challenges of their industry. Here are some aspects that engineering companies often prioritize when purchasing an ERP system:
- Industry-specific functionality: Engineering firms look for ERP systems that offer industry-specific features and functionality. The software should address the unique processes and requirements of engineering firms, including resource management, project management, project accounting and other project-centric functionality.
- Scalability: The ability of the ERP system to scale with the firm's growth is a key consideration. Engineering firms want a system that can adapt to their company's changing needs. As a company expands, its data and transaction volumes increase. Scalable ERP systems can handle this growth seamlessly without significant performance degradation. This ensures that the software remains effective and responsive as the business scales. In addition, firms may experience fluctuations in workload, especially during peak times. Scalable ERP solutions can efficiently handle increased workloads without compromising performance, ensuring the system remains reliable and responsive even during busy periods.
- Project management features: Since project management is a central aspect of engineering work, engineering firms prioritize project-based ERP systems that offer robust project management tools. This includes features such as scheduling, resource allocation, budget tracking and progress monitoring.
- Mobility and accessibility: In today's dynamic work environment, engineers value ERP systems that offer mobile accessibility. The ability to access and update information from anywhere facilitates collaboration and allows for more flexible working arrangements.
- User-friendly interface: The usability of the ERP system is crucial for user adoption. Engineering firms look for systems with intuitive interfaces that facilitate easy navigation and minimize the learning curve for users across different roles in the firm.
- Configuration and flexibility: Every engineering firm has its unique processes and workflows. Engineers prefer ERP systems that allow for configuration and flexibility to adapt to their specific needs without requiring extensive programming or customization efforts.
- Data security and compliance: Given the sensitivity of project data, security is a top priority. Engineers look for ERP systems that adhere to industry best practices in data security, including encryption, access controls and support for compliance with data protection regulations.
- Vendor reputation and support: The reputation of the ERP vendor and the level of support they provide are critical factors. Engineering firms want to ensure they partner with a reliable vendor that offers ongoing support, updates and a track record of successful implementations.
- Cost considerations: Engineering firms consider the total cost of ownership, including licensing fees, implementation costs and ongoing maintenance. They seek a solution that provides value for money and aligns with the organization's budget constraints.
Adaptable Solutions for Your Business
Deltek's Enterprise Resource Planning (ERP) software solutions are built to support project-based businesses and streamline and automate your core business operations while breaking down departmental barriers. Our cloud and on-premises solutions provide real-time visibility into all corners of your business and advanced reporting to enable confident and timely decision-making. Whether your company is a small business or an enterprise organization, our scalable and adaptable solutions help better serve your clients while driving growth and profitability.