Project management Current SCM

The construction project management industry has long operated as a brick-and-mortar business. Plans are drawn up, materials are resourced, and a final product is built. Over time the complexity, costs, and time commitment allotted to a project have become more demanding. And as with most other industries, an expectation of greater efficiency and effectiveness has followed closely behind. These demands have been driven largely by the increased efficiency of labor, due in part to digitization. 

In the modern digitized economy, there is now an expectation that even the most physical industries adopt some form of software solution in its processes, and construction management is no exception. At first, many companies flourished with the implementation of layers of spreadsheets and word documents, keeping more robust digital solutions for their project management at a distance. 

As the needs of construction project management continue to develop, there is a growing demand for an innovation from simple spreadsheet solutions to integrated project management software. Construction managers who wish to increase their competitiveness will be looking to detach from classic spreadsheets and documentation and adopt a comprehensive, single-source-of-truth solution. 

3 Major Advantages of Adapting Project Management Software 

Project management software has often carried the stigma of being strictly within the realm of large corporate businesses and tech industries. But professional construction leaders are becoming more and more amicable toward modern software solutions to meet their business needs. Software can improve communication, streamline workflows, improve project scaling, and much more. Deleveraging the traditional notions of work processes like spreadsheets may be considered a risk to some. But this change is important for long-term health and investment in a classically brick-and-mortar industry.  

1. Accountability & Collaboration 

  • When it comes to working together, it’s incredibly easy to improve the communication process by creating a digital framework for the constant back-and-forth of modern projects. Like going from fax to email, digitizing your ability to communicate with stakeholders allows everyone to be on the same page and connects multiple parties so that every project is coordinated as openly as possible. Nearly all project management software will contain some form of internalized communication and accountability process. Whether it’s reviewing the output of team members, confirming purchase orders, verifying bids, or simply staying connected with a team you cannot go wrong with consolidating your project communications. 

2. Better Vendor Relations 

  • The best e-procurement and project management systems keep tabs on supplier relationships by maintaining detailed records for each vendor used by the company. This snapshot of your relationship history lets you to determine if you still want to work with a particular vendor or not. And procurement software allows you and your teams to constantly provide feedback, reviews, and revisions to your vendor lists so that the company can make the best choices when deciding which upstream or downstream contacts to do business with.  
  • For many this represents a generational change in relationship management. The world has become more globalized and sourcing materials can’t always been done in person with a firm handshake. Now project managers will need to be able to hold vendors accountable online and offline. 

3. Gains of Efficiency, Reductions of Risk 

  • Recent years have made it clear that supply chain, labor, and materials challenges are not going to go away. They are now an ingrained part of a project’s risk management. And for many smaller contractors and construction firms, even small mistakes can carry terrible consequences for themselves and their stakeholders. Getting a job done right is more important than ever before, and companies are finding it increasingly difficult to execute projects with consistency while relying on outdated project management methods. 
  • By reducing human errors, providing a smooth flow of information, and creating a quicker process for approvals, project management software can make a company more efficient throughout a project’s lifecycle. This means that a team can complete more projects with less headaches, and fewer mistakes. The payoff will be increasing a company’s reputation in the industry and providing a steppingstone for more contracts and business opportunities. The automation of procurement processes minimizes paperwork, rogue spending, and the likelihood of human error.  
Construction project management Current SCM

Takeaway 

The critical takeaways from investing in construction project management software is to pick the best tool to solve the challenges your business faces today and to prepare for a more competitive future. No one thing can solve all problems, and over-reliance on software can cause more issues than it solves. Look at the problems within your current business processes and invest the time to research the incredible software solutions out there. The first step to improving the digital competency of your business is to commit to the due diligence. 

If you are interested in learning more about digitization in the construction project management industry, there are great resources out there, including: 

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