The construction industry thrives on precision, collaboration, and timely execution. Yet, many companies still rely on disparate systems and manual processes, leading to inefficiencies, costly delays, and reactive decision-making. NetSuite offers a powerful and integrated ERP solution specifically designed to address the unique challenges of construction businesses. There are many modules and features that support the efficient operation of construction based organisations, so let's dive right into them!
One of the key aspects of a contraction business is being able to effectively manage multiple projects, and NetSuite's project management tool go beyond mere scheduling. SuiteProjects offers centralised tracking of multiple projects, detailed resource allocation, and progress tracking against milestones. This enables project managers to anticipate issues, adjust resources dynamically, and ensure project delivery within scope, time, and budget constraints.
Key Benefits of SuiteProjects include:
- Streamline operations and drive profitability by optimising the entire services business lifecycle.
- Faster project completion, better resource utilisation, more accurate and efficient invoices
- Increased visibility across your business, including forecasts, resources, projects and KPIs.
- Anytime, anywhere web and mobile access.
- Real-time reporting on key metrics such as project profitability and resource utilisation.
- Gain real-time, global business management and financial consolidation.
Construction financial management requires tracking a plethora of moving parts. NetSuite offers a comprehensive suite for handling project finances, including real-time budgeting, expense tracking, and financial reporting. This ensures that financial health is always visible, allowing for immediate adjustments to preserve or enhance profitability.
Some of the modules that support financial management include:
- Oracle NetSuite Planning and Budgeting Cloud Service (PBCS)
- Fixed Assets
- OneWorld Financial Consolidation
- Multi-book Accounting
- Advanced Financials
- Advanced Revenue Management
Integrated within financial and project management modules, job costing functionality allows for precise tracking of project expenses, labor, and overheads. It provides construction managers with detailed cost breakdowns, enabling them to monitor project profitability, identify cost overruns early, and adjust project plans as needed. Accurate job costing is essential for effective budget management and financial reporting in construction.
NetSuite offers a This module streamlines the procurement process, from requisition to payment, enabling construction firms to manage their spending efficiently. It automates the procurement cycle, helping to negotiate better prices, manage supplier relationships, and ensure timely delivery of materials and services. By optimising procurement practices, construction companies can reduce project costs and enhance supplier collaboration, contributing to timely project completion.
Benefits of NetSuite's procurement module:
- Enhanced Profits: Access to detailed information on everything a vendor supplies enables purchasing managers to negotiate stronger deals and make the most of bulk buying savings.
- Improved Visibility: All vendor-related information and project details are stored in one central location, making it easy for buyers to access the full, relevant data they need.
- Stronger Vendor Relationships: Through a dedicated vendor portal, vendors and buyers can communicate directly and share documents and ideas seamlessly.
- Better Cost Management: Purchase orders clearly outline the costs for requested items, helping to prevent surprise price hikes and invoices that don't match the initial order.
- Easier Identification of Discrepancies: The process of three-way matching is used to spot any differences between the purchase orders, delivery receipts, and billing statements.
NetSuite's Inventory Management module offers a strategic approach to optimising inventory levels. By leveraging demand-based planning that considers historical demand, sales forecasts, and seasonality, construction firms can ensure they have the exact amount of stock needed for their projects. This prevents both overstocking, which ties up valuable capital, and understocking, which can lead to project delays and increased costs. The ability to maintain optimal inventory levels directly contributes to smoother project execution and improved financial health.
Furthermore, the module enhances profitability through company-wide inventory visibility, allowing for more efficient inventory allocation and reducing emergency purchase costs. Intelligent fulfilment further decreases the cost of goods sold by minimising handling expenses and cutting shipping costs. By optimising shipping and handling based on location and availability, construction companies can significantly lower operational costs. This streamlined approach to inventory management not only boosts profitability but also supports competitive pricing, making NetSuite's Inventory Management module a key asset for the construction sector.
Supply Chain Management (SCM)
The SCM module provides a comprehensive view of the entire supply chain, enabling construction companies to plan, execute, and monitor supply chain activities more effectively. It includes features for demand planning, procurement, inventory management, and supplier collaboration. Enhanced supply chain visibility helps construction firms anticipate material needs, manage procurement efficiently, and ensure timely project execution.
"We rely on NetSuite for our supply chain management. It manages the entire journey of our goods, from our suppliers through manufacturing to our customers. With NetSuite, we can keep our production running smoothly by ensuring that all necessary materials are available in the right locations, while effectively scheduling our resources." Christophe Verstreken, GM, Belgian Delights
Customer Relationship Management (CRM)
NetSuite's CRM module supports the entire customer lifecycle, from lead generation to project delivery and post-sale service. It enables construction companies to maintain detailed customer records, manage sales pipelines, and deliver personalised customer service. By leveraging CRM insights, firms can improve customer satisfaction, foster long-term relationships, and drive repeat business.
Benefits of NetSuite's CRM module for construction companies:
- Single Data Source: A single view of a customer across all channels provides complete visibility into all online, in-store and phone transactions and interactions.
- Improved Sales Performance: Get visibility into pipeline and forecasts and streamline the sales process with a fully unified quote-to-order, cash and fulfilment solution.
- Effective Campaign Management: Streamline execution of marketing campaigns across multiple channels.
- Increased Customer Satisfaction: Support teams can access customer information anytime, anywhere to drive customer satisfaction and retention.
Human Capital Management (HCM)
The HCM module, SuitePeople, helps construction companies manage their most valuable asset – their workforce. It encompasses recruitment, onboarding, payroll, benefits administration, and performance management. The construction industry, characterized by its diverse workforce, project-based tasks, and compliance requirements, stands to gain significantly from the functionalities provided by SuitePeople. Here are some key benefits:
- Streamlined Workforce Management: Construction companies often deal with a fluctuating workforce due to the project-based nature of their work. SuitePeople allows for easy management of employee information, job roles, and project assignments, enabling efficient allocation of labor resources across various projects.
- Mobile Access for Field Staff: With SuitePeople, field staff can access their HR-related information through mobile devices, enabling them to submit time-off requests, view their schedules, and access payroll information while on-site. This accessibility is crucial for maintaining connectivity and engagement with employees who are rarely in an office setting.
- Integrated Project and HR Management: SuitePeople's links up seamlessly with SuiteProjects, to enable linking of employee hours directly to projects for accurate job costing and budgeting, and managing subcontractor records alongside regular employees, providing a holistic view of labor costs.
- Automated Payroll and Benefits Administration: Construction companies can manage complex payroll requirements, including union rules, prevailing wage rates, and varying employee benefits packages, directly within SuitePeople.
Reporting and Analytics
NetSuite offers powerful reporting and analytics tools that draw data from across the ERP system. Construction companies can customise reports and dashboards to monitor key performance indicators (KPIs), project progress, financial health, and more. These insights support strategic decision-making, enabling firms to identify trends, optimise operations, and improve project outcomes.
This feature helps construction companies navigate the complex regulatory landscape, ensuring compliance with financial reporting requirements, safety standards, and environmental regulations. NetSuite automates compliance processes, reducing the risk of non-compliance penalties and enhancing the company's reputation for reliability and safety.
Third Party App Integrations
As well as all the brilliant native modules available, NetSuite seamlessly integrates with third-party apps. Construction projects require close coordination between project management and financial accounting. Integrating NetSuite with construction management software allows for a seamless flow of financial data related to project costs, labor, materials, and equipment directly into the accounting system. This ensures accurate and timely financial reporting, budget tracking, and profitability analysis for each project.
By automating data exchange between NetSuite and construction management applications, companies can reduce manual data entry, minimise errors, and save time. This automation extends to critical areas such as inventory management, purchase orders, and invoicing, streamlining operations across the business and freeing up staff to focus on more strategic tasks. Apps such as Procore and FullClarity are frequently integrated with NetSuite.
Together, these modules form a cohesive system that addresses the unique challenges of the construction industry. By leveraging NetSuite's integrated suite, construction companies can achieve greater operational efficiency, improved project management, and enhanced financial control, leading to increased profitability and competitive advantage. If you'd like to see how your construction company could benefit from NetSuite, get in touch and book a demo with us! Or for more information on license and implementation costs, check out our comprehensive NetSuite pricing guide.