General Inquiries

Fabrication/Construction ERP Integration

  • 1.  Fabrication/Construction ERP Integration

    Posted 05-21-2020 15:19
    Has anyone been able to successfully integrate standalone fabrication and construction ERP systems?  Or is anyone using an ERP system that can handle both fabrication and construction accounting/operations?  If so, any suggestions would be helpful.

    Thanks.

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    Nicholas Morfeld CPA, CMA
    Vice President of Finance
    ATEC Steel, LLC
    Baxter Springs KS
    (877) 457-5352
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  • 2.  RE: Fabrication/Construction ERP Integration

    Posted 05-22-2020 08:38
    Hi Nicholas,

    I gotta tell ya...it's tough to nail.  We've been trying and we're about to re-start from scratch for the 3rd time.

    I would consider a couple steps first before mapping an integration:

    1)  Collaborate with the team to agree on the balance between getting the unit price and the level of granularity and stages to track along the way.
    2)  Look ahead and plan for artificial intelligence and future tech immersion so you don't close you tech stack off from what's coming.

    A good person to contact is Jason Anderson at MKB Construction and Kapture Prefab.  He's immersed in both environments and might help you avoid some landmines.

    Contact me if you would like to be connected or have other questions.

    Sincerely,

    #buildTRUTH
     ​

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    Chad Pearson - Plexxis Patriot (dealer of truth in build)
    Director of Business Development
    Plexxis
    Brampton ON
    (416) 574-1677
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  • 3.  RE: Fabrication/Construction ERP Integration

    Posted 05-22-2020 13:54
    Hi Nicholas:

    Good question. This is an area I have been seeing greater interest in over the last two years. Basically, unless you move up to Tier 1 ERP solutions, you cannot get what you are looking for in ERP. IFS and Dynamics are the two likely candidates that have both Job Cost for construction functions as well as shop floor for the fabrication management. They also have more robust inventory and procurement capabilities. JD Edwards would have been an option here as well but not sure if that is right direction for you. Alternatively, some companies are trying to integrate a shop floor application like FabSuite, StruMIS, or Manufacton to their construction ERP solution. This is potentially a large and complex integration and I am not sure the usual candidates are very far along. I have talked with COINS and Viewpoint about this numerous times.

    For what it is worth, I also think you have to take a hard look at the way you design, build and fabricate. From your website, you appear to be more of a fabricator that installs rather than primarily a builder that fabricates. There are important questions in here around which schedule drives decision making?, where is profit on jobs?, where is risk in schedule? Things of that nature. This could end up driving the decision on ERP and would certainly drive implementation matters.

    Sorry for the long answer but, unfortunately, this is an evolving question right now in the industry. Stay tuned to Burger Consulting. We are doing a webinar in July around Fabrication and impact on ERP. Hope this is of some help. Happy to chat on the phone as well if you want.

    All the best,

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    Christian Burger
    President
    Burger Consulting Group
    Chicago IL
    (312) 651-4151
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  • 4.  RE: Fabrication/Construction ERP Integration

    Posted 05-24-2020 16:36
    Edited by Kerry Mann 05-24-2020 16:37
    Nicolas,

    We are experiencing good success with Acumatica in the mid-market space. It has very good construction project costing and project management and it offers very strong
    Manufacturing capabilities with shop floor control and MRP. something to consider perhaps.
    Main site https://www.acumatica.com/
    Construction Edition: https://www.acumatica.com/cloud-erp-software/construction-accounting-software/
    Manufacturing Edition: https://www.acumatica.com/cloud-erp-software/manufacturing-management/

    The main thing to note is that one can mix and match capabilities for various editions. With the advent of pre-fab in all types of construction. It is only a matter
    of time when most construction companies will need manufacturing (fabrication) capabilities.

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    Kerry Mann
    Partner
    MNP LLP
    Mississauga ON
    +1 6472903395
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