The implementation of enterprise resource planning systems in roads and infrastructure construction companies in developing countries

Abstract

Construction Enterprise Resource Planning (CERP) systems are built to fit the needs of construction companies. The major modules that are required to be within this system include management of general contractors, subcontractors, financial work, accounting, payroll, logistics, workflow processes... The collected data are stored within one unique database. However, CERP systems are difficult to standardize and fit the need of all the companies. Hence, this research focuses on the elaboration of a framework that displays the minimum required modules to be included within a CERP, specifically for road and infrastructure construction companies. This objective is achieved based on the literature review, several meetings elaborated with experienced people in the field, and the survey’s results. A procurement module linked to the on-site deliveries is a first stone that should be developed and implemented. Then, budgeting and work progress modules must be added. Finally, timesheet and equipment follow-up modules need to be implemented. Besides, through this research, the benefits and the challenges faced due to the integration of CERP are also considered. These attributes are tackled through a survey distributed among different ERP users, technical observations, and meeting with experienced people in the field. Mainly, developing countries' lack of strict legislation, lack of good technological capabilities, and lack of educational competences are seen as major challenges. While the benefits gained have a major impact on the company’s turnover in the long term. This is due to less time needed in achieving managerial tasks, reduction in costs, real-time follow-up, better data collection, and reporting especially through using interactive dashboards within the system. Combining all the data in a unique database will make the elaboration of interactive dashboards and their integration easier. Therefore, the managers will follow up their resources through faster techniques and they will optimize the allocation of all their resources through good planning and clear projections. They will avoid delays since tracking the daily work will be simpler. Finally, an approximative cost is presented while taking into consideration the three phases suggested in the framework and the other necessary cost. Some limitations are encountered and must be considered in future work such as the cost, the company’s size, development and implementation period, and type of work.