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Unlocking Stability and Growth with Advanced Construction ERP Solutions

In the construction industry, rising labour and material costs aren’t just temporary setbacks – they’re major threats to financial stability and profitability. According to the Construction Industry Federation’s Construction Outlook Survey for Q1, two-thirds of respondents in Ireland reported increased labour costs, and 60% saw a rise in raw material costs. With multiple projects on the go, a lack of visibility into actual profit and loss due to these escalations can spiral into uncontrolled margin erosion. 

Margin erosion happens when project costs exceed original estimates, but revenue stays fixed due to contract terms. This is becoming more common with volatile material costs and unpredictable labour availability. Traditional project management tools often can’t provide the real-time, actionable financial data needed across multiple contracts. 

John Coghlan, Director of FullClarity, puts it plainly: “In today’s fast-paced market, visibility is key. Without real-time insights into cost fluctuations and their impact on each project, companies are navigating blind. This jeopardises both project profitability and the overall financial health of the enterprise.” 

Leveraging Construction for NetSuite can clarify these challenges, aiding proactive decision-making and financial stability. 

The Power of Automation in Construction Management 

Automation is crucial in combating margin erosion. Automated Enterprise Resource Planning (ERP) systems provide real-time data analytics for quick, informed decisions. These systems track cost changes at the contract level and compile data across projects, offering a comprehensive view of financial health. Real-time insights allow for proactive adjustments to project management strategies, maintaining profitability and significantly reducing margin erosion. 

Integrated ERP Addresses the Challenges 

Systems like Oracle NetSuite connect seamlessly with Construction for NetSuite, and offer robust tools tailored to the industry’s needs. NetSuite provides a unified platform where all financial, customer, and project data is accessible 24/7 and always up-to-date. This allows for immediate adjustments in project management and procurement strategies, aligning them with current market conditions. Construction for NetSuite enhances this with construction-specific functionalities. 

The benefits of these integrated systems include:  

Real-Time Cost Monitoring: Project managers can instantly compare current and projected costs, allowing for swift interventions. 

Automated Alerts: Alerts for budget overruns or sudden material price increases ensure no cost escalation goes unnoticed. 

Enhanced Forecasting Tools: Improved data collection and analysis facilitate more accurate forecasting, helping firms avoid underquoting on future projects. 

Consolidated Financial Reporting: Integrated financial data lets firms quickly assess the profitability of individual projects or the entire portfolio. 

A Robust Cloud-Based Construction Management Solution 

Construction for NetSuite is a robust, cloud-based construction management solution built on Oracle NetSuite, the world’s #1 cloud ERP platform. Seamlessly integrated, it combines world-class accounting designed for construction with powerful job costing. This solution adjusts to your best practices while providing a “single source of truth” for making the best decisions. 

Built natively in NetSuite, Construction for NetSuite is 100% natively integrated with your existing NetSuite products. All activity is handled in real-time and with full visibility, offering a seamless experience. 

If you need accurate, up-to-date project reports on demand and wish your ERP system automated your processes, Construction for NetSuite is the groundbreaking cloud-based solution to help solve your issues. Our experts understand the unique challenges associated with managing a construction company and have crafted this solution with those challenges in mind. 

Embracing Advanced ERP Solutions for Future Success

OSSM’s partnership with NetSuite brings forward-thinking approaches to construction management, enabling companies tackle the problem of shrinking profit margins. In adopting smart construction systems, companies can manage today’s complexities and challenges while being prepared for the industry’s future changes. 

Rising labour and material costs don’t have to spell disaster for construction and fit-out companies. With strategic investments in ERP systems like Oracle NetSuite, firms can regain control over their margins and steer their projects toward profitability and success. This proactive approach to financial management in construction is a strategic advantage in the competitive industry landscape. 

Discover the Power of Construction for NetSuite – Download Our Brochure 

We’d love to share our brochure on this very topic. You’ll learn how Construction for NetSuite can track all your costs and analyse estimates in real-time, giving you better control of your project’s profitability.  

Download your copy here.  

About the Author

Picture of John Coghlan

John Coghlan

John Coghlan, Co-Founder and Director of FullClarity, has extensive experience in the building and construction industry. Growing up in the construction sector, he has a deep-rooted understanding of its intricacies. His expertise as a consultant is well-regarded in the industry.

African American woman are work with business distribution inventory in warehouse factory, female people working in safety occupation job for shipping industry manufacturing

Signs Your Business Would Benefit from a New Warehouse Management System

Efficient warehouse management is more than just an operational necessity in today’s fast-paced world, it’s a competitive advantage. However, knowing when your current warehouse management system is falling short can be challenging. Often, what might seem like a minor inconvenience could be a significant bottleneck, impacting everyday warehouse operations and your overall business performance. Understanding the difference between small issues and critical deficiencies is crucial for maintaining an efficient warehouse.  

In this blog, we have explored some common problems associated with basic warehouse management systems that could be impacting the success of your business. While on its own each of these issues may seem unimportant, together they can significantly influence operations. By identifying these 10 signs, you can make an informed decision about upgrading to a more sophisticated warehouse management system (WMS) that not only meets your current demands but also supports future growth.  

1. No Multi-Location Inventory Tracking 

As businesses grow and expand, they typically require more than one location, whether it’s stores, warehouses or third-party facilities. This is when the limitations of entry-level inventory management systems become more apparent. These systems are typically designed for single-location operations, meaning they struggle to track inventory across multiple locations, resulting in a lack of insight. This can complicate order fulfilment processes and increase costs by not allowing for the optimisation of shipping routes or inventory pulling. Not to mention, it can hinder purchasing decisions. Without clear visibility into stock levels, ordering and allocating stock can become a guessing game, making the process more complicated.  

2. Manual Updates to Product Records 

Typically, basic warehouse management systems will store product details, yet they often need to provide more key information, such as item location by zone or special handling instructions. When your e-commerce and POS systems aren’t integrated with your inventory systems, significant manual effort is required to update product information across multiple platforms too, increasing the likelihood of human error. This seemingly minor inconvenience can lead to hours of wasted time each week manually updating and checking inventory records. Upgrading your software system can centralise information for every SKU, reduce mundane and error-prone tasks, and deliver an impressive ROI.  

3. Messy Demand Planning 

Effective warehouse management requires more than just current inventory visibility, you need insights into past SKU performance, seasonal trends and demand fluctuations to replenish stock. Starter systems may offer basic sales and inventory reports, but these often need to be manually uploaded into spreadsheets and it quickly becomes a messy, time-consuming process. As businesses grow and operations become more complex, the need for sophisticated demand planning increases. When sales and purchase orders increase, any mistakes will be magnified and it becomes even more important to have software you can rely on. Advanced WMS will provide you with reliable and accurate data, minimising the risk and impact of errors.  

4. Painful Inventory Counts 

Inventory counts are a necessary but time-consuming task, often requiring businesses to shut operations down once or twice a year. Without an effective warehouse management system, these counts are even more disruptive as they tend to involve stopping all inventory movement. Relying on spreadsheets for tracking expected quantities not only slows the process but also increases the likelihood of errors, such as double-counting items. Not to mention, without the right software, you can’t use handheld scanners that make inventory counts much easier, faster and more accurate. Similarly, cycle counts which can streamline full counts or prevent the need for them altogether, can take longer than should when you have a manual system.  

5. Lack of Traceability 

In highly regulated industries where recalls aren’t uncommon, being able to track every item sold is essential. You need to be able to trace products back to suppliers and the raw materials used to make them, and also trace them forward after they are sold to the customer so you can notify them of any product issues. Without a software system to automate tracking, the process can get very confusing and any inaccuracies can risk customer safety and brand reputation. A robust inventory management system can simplify traceability by automatically generating and assigning lot numbers to production runs, enabling you to keep precise records and easily reach customers if any issues arise, reducing costs and improving customer satisfaction.

6. Lack of Integration 

A WMS system that lacks integration with essential business processes, such as accounting or sales, can create significant inefficiencies. Without integration, for instance, accounting teams can struggle to reconcile inventory accurately, leading to financial reporting discrepancies and it will be harder for sales teams to access real-time inventory data, resulting in errors in order processing. Similarly, without CRM integration, customer service representatives may lack visibility into customer histories or preferences, impacting service quality. These integration gaps often result in fragmented information across different systems, making it almost impossible to get a comprehensive overview of business operations and performance.  

7. Difficulty in Forecasting 

When your current system fails to forecast demand or capture seasonal trends accurately, it causes several challenges, including the risk of stockouts or overstock situations that don’t align with actual customer demand. Inaccurate and unreliable forecasting often results in lost sales opportunities and dissatisfied customers, as well as inventory tying up capital and space. Difficulty forecasting can disrupt supply chain operations, inventory planning and pricing strategies too, preventing you from being able to take advantage of anticipated demand. Ultimately, the inability to generate accurate demand forecasts and understand seasonal trends negatively impacts operational efficiency, profitability and customer satisfaction. 

8. Poor Reporting and Analytics 

Inadequate reporting capabilities and a lack of actionable insights from current warehouse management systems can restrict your ability to make informed and strategic decisions. Without visibility into critical performance metrics like inventory turnover rates and sales trends, it’s difficult to identify and correct inefficiencies. Additionally, not having reliable data prevents you from being able to develop effective pricing strategies that consider demand trends, competitor pricing and product profitability, leading to missed opportunities for maximising revenue. Not to mention, poor reporting limits the ability to assess supplier performance, making it difficult to address issues and negotiate favourable terms.  

9. Over Stocking 

Excess inventory that’s taking up valuable space in your warehouse and tying up capital is a clear sign that your software system isn’t working as effectively as it should be or providing the insights you need. Excessive inventory levels can lead to increased warehousing costs and reduce the available space for high-demand items, impacting overall warehouse productivity. This inefficiency not only impacts operational expenses but also restricts cash flow, preventing your ability to invest in growth initiatives. Excessive stock also increases the risk of stock obsolescence or depreciation, as products become outdated or sustain damage over time, leading to lower turnover rates that negatively affect profitability and liquidity.

10. Customer Experience 

When your current WMS leads to poor customer experiences, such as delayed shipments, out-of-stock items or inaccurate order fulfilment, it sets off a chain reaction that impacts your reputation and bottom line. Delayed deliveries and unavailable products can be frustrating for customers, potentially driving them towards competitors who can meet their needs. Inaccurate fulfilment can cause further damage by undermining your competence. These days, negative experiences are often shared through word-of-mouth or online reviews, damaging your reputation and deterring prospective customers. Ultimately, these issues result in an immediate loss of sales, as well as long-term damage to your brand’s competitive standing in the market. 

Upgrading Your Warehouse Management System in Ireland  

All in all, replacing your old warehouse management system is key to addressing current inefficiencies and supporting business success. A new cloud-based WMS solution can transform your warehouse operations and provide you with the comprehensive tools you need for inventory management, supply chain management, logistics processes and much more.  

Here at OSSM, we are a dedicated NetSuite Solution Provider, and we can help you streamline your business with the right warehouse management system software. We have experience across various sectors, including distribution, manufacturing and field services, and our team will make your NetSuite journey as hassle-free as possible. We can help you integrate the right software into your warehouse operations and we will support you through the entire process, ensuring a quick and cost-effective transition. You can trust you will be in very capable hands when you turn to us for assistance with managing all aspects of your warehouse.  

Why not explore our NetSuite Guide?

Download our guide: Where Warehouse Management and Finance Collide, where we have explored some common problems associated with basic warehouse management systems. 

On June 20th, we will host a webinar to help businesses maximise inventory ROI with NetSuite.

The following topics will be discussed:

• Key Challenges for Distributors
• The Critical Role of Inventory Planning
• Precision Forecasting
• Efficient and Green Warehouse Management
• The Impact on the Bottom Line

See link to register: https://ossmcloud.ie/ossm-webinar-from-chaos-to-control/

About the Author

Picture of Naren Sompalli

Naren Sompalli

Naren holds a Bachelor of Engineering degree from BNM Institute of Technology. As a NetSuite specialist, he is involved in implementation at OSSM, collaborating with a team of experienced consultants. Naren conducts workshops for solution implementation and delivery, providing technical support and expertise.

The Impact of Inventory Control on Cash Flow

How Tighter Inventory Control Can Improve Cash Flow

The Impact of Inventory Control on Cash Flow

A healthy cash flow is crucial for businesses, especially during challenging economic climates when many are concerned about their near-term future. In uncertain times, businesses often experience a reduction in revenue, while expenses and operating costs remain constant or even start to rise. Without adequate cash reserves, businesses may struggle to meet their financial obligations and finance teams need to go back to basics, carefully review their finances and properly manage their cash flow.

For any business that buys and sells products, inventory control plays a huge role in cash flow. It’s key to ensure that you have the necessary resources to sustain operations and meet demand, but this can result in money being tied up in inventory. If you’re looking to optimise your cash flow, minimising expenses related to buying, holding and selling items is key, and the importance of improving inventory management shouldn’t be underestimated.

Fortunately, having tighter inventory control can help to improve cash flow and if you’re concerned about the current economic climate, now is the time to focus on your inventory. Below we have explored how inventory management can help with cash flow and how NetSuite can support inventory-related savings.

The Impact of Inventory Control on Cash Flow

Inventory is a significant investment for companies and managing inventory levels can have a direct impact on cash flow.

One of the main ways that inventory control affects cash flow is through the cash tied up in inventory. When a business purchases inventory, it ties up cash that could otherwise be used for other purposes. Additionally, maintaining high levels of inventory can result in increased storage and holding costs, which further drain cash reserves. On the other hand, too little inventory can lead to lost sales and lost revenue. If a business is unable to meet customer demand due to low inventory levels, customers may take their business elsewhere.

Effective inventory control involves finding the right balance between having enough inventory to meet customer demand and minimising the amount of cash tied up in inventory. By finding the right balance, businesses can maximise their financial resources and better position themselves for long-term success.

Revolutionising Inventory Management with NetSuite ERP

Businesses can use technology to help manage inventory levels and optimise cash flow, like NetSuite. Inventory management software can provide businesses with the insight they need into their inventory levels and help to identify opportunities for cost savings. By using technology to manage inventory, businesses can make informed decisions about when to order inventory, how much to order and how to allocate resources more effectively.

NetSuite’s comprehensive Enterprise Resource Planning (ERP) solution provides businesses with financial management and inventory management in a single system. This enables you to see how your inventory is affecting your financials, and it makes it easier to understand the impact that these two key components have on day-to-day business operations as well as one another. 

Analysing Sales Data

A popular strategy for effective inventory control is to analyse sales data and identify products that are slow-moving or have a low-profit margin. This enables you to reduce the inventory levels of those items and concentrate on items that contribute most to your bottom line.

NetSuite will help you to strategically manage your inventory levels and minimise the amount of cash tied up in inventory without losing sales or sacrificing customer satisfaction. The user-friendly dashboards make it easy to access real-time data and the consolidated reporting enables you to analyse historical data. It will be easy to track things like sales trends and margins, so you know which SKUs are profit-makers and need to be pushed.

Forecasting Demand

To prevent you from ordering too much or too little inventory, it’s essential to have accurate forecasts. When you order the right amount of specific items, you can ensure that you’re able to meet demand but you’re not stuck with unsold stock, increasing your bottom line.

When you use NetSuite ERP software to your advantage, you will have access to the mission-critical data you need to make better decisions. You can create accurate reports about inventory levels and performance, and use these to support purchase decisions. It will be much easier to ensure you have the right amount of inventory at the right time and NetSuite forecasts can meet the complex needs of different businesses.

Monitoring Inventory Levels

Having ‘safety stock’ is important regardless of which sector you operate in. However, incorrect or outdated safety stock targets can result in holding too much stock. When money is tied up in safety stock, it can’t be used elsewhere and inventory levels could be draining cash reserves.

Integrating NetSuite software into business processes can help you to monitor inventory levels and ensure that safety stock is kept up-to-date. By taking into consideration things such as historical and seasonal demand as well as supply chain predictability, the accuracy of safety stock targets can be improved. NetSuite can also calculate reorder points, helping to ensure you’re always holding the right amount of inventory.

Improving Inventory Data

To improve inventory control, it’s essential to ensure the numbers in your system match on-hand quantities. Far too often inventory isn’t accounted for and businesses don’t have accurate data, which causes an abundance of problems later down the line.

NetSuite ERP can be used to increase the reliability and accuracy of inventory data, and it will be easier than ever before to update inventory records. You can perform cycle counts as well as full inventory counts with this smart business software, and counts can be adapted to your specific needs. When you account for inventory properly, you can avoid discrepancies and make decisions based on accurate inventory data.

Reducing Fulfilment Costs

When you operate across multiple locations, knowing the location of your inventory is crucial and it can help to support fulfilment decisions. By shipping from the best locations, you can reduce shipping costs and boost your profit margins.

Using a comprehensive ERP system like NetSuite can help to improve real-time visibility across locations. You can also save a considerable amount of time and effort by removing the need for manual order reviews, and the system will automatically assign orders to the best shipping locations. Making better fulfilment decisions won’t just reduce shipping costs, but it will also reduce shipping times which can have a knock-on effect on customer satisfaction.

Working With a NetSuite Business Partner in Ireland

Ultimately, improving inventory management is key to improving cash flow and it’s undoubtedly worthwhile focusing on inventory control if you want to free up cash for other purposes. If you’re interested in NetSuite business software and you’re wondering how it can benefit your operations, don’t hesitate to contact our team at OSSM. We collaborate with businesses across a range of industries and help them to overcome unique challenges.

As a trusted NetSuite Solution Provider in Ireland, you can rely on us to deliver flexible and long-lasting cloud solutions. Our team will happily assist you with your NetSuite project and help you to establish the best solutions to your needs. We can even provide you with a NetSuite product tour to help you determine whether it’s the right option for your business.

Why not explore our NetSuite Guide?

Download our guide: Where Warehouse Management and Finance Collide, where we have explored some common problems associated with basic warehouse management systems. 

On June 20th, we will host a webinar to help businesses maximise inventory ROI with NetSuite.

The following topics will be discussed:

• Key Challenges for Distributors
• The Critical Role of Inventory Planning
• Precision Forecasting
• Efficient and Green Warehouse Management
• The Impact on the Bottom Line

See link to register: https://ossmcloud.ie/ossm-webinar-from-chaos-to-control/

About the Author

Picture of Naren Sompalli

Naren Sompalli

Naren holds a Bachelor of Engineering degree from BNM Institute of Technology. As a NetSuite specialist, he is involved in implementation at OSSM, collaborating with a team of experienced consultants. Naren conducts workshops for solution implementation and delivery, providing technical support and expertise.