In this period of economic turmoil, construction companies must do more with fewer resources. However, the fact remains that the most successful construction companies use technology to run their businesses. This increased focus on tightening budgets makes finding affordable technology solutions more important than ever.
Mobile resource management (MRM) enables construction companies to achieve significant business benefits without a large capital investment. Construction crews can clock in and out, get turn-by-turn directions to the jobsite and receive automated job details all through a wireless phone. Meanwhile, managers can more efficiently dispatch crews, manage labor costs, reduce fuel waste and improve customer service.
Overcoming Obstacles with Technology
In construction, employees work at multiple jobsites and out of management’s line of sight. Many paper-based processes make it difficult to manage labor costs, accurately bid on jobs and comply with regulations. Construction companies also stand to lose money as a result of inaccurate timecards, lack of employee accountability and wasted fuel.
With the latest advances in GPS, wireless and web technologies, MRM addresses these challenges efficiently and cost-effectively.
Managing Labor Costs
Construction companies carefully manage labor costs to come in under bid. Wireless timecards allow managers to track overtime and closely monitor labor costs throughout the job life cycle so they know exactly where the project stands compared to the initial bid. Transmitted in near real time, wireless timecards eliminate inefficient paper-based processes and reduce timecard rounding and time theft. Crews can clock in and out from the jobsite and save on trips to the office to turn in paperwork. To ensure worker accountability, managers can compare timecards with GPS data.
Estimating Better Bids
With detailed reports on actual labor costs, construction companies can ensure bids are not too low (and unprofitable) or too high (and non-competitive). This benefit translates to significant profit increases. Many companies find that this benefit pays for the technology, providing a high return on investment.
Improving Operations
With detailed GPS data, management knows the exact location and status of every worker and is able to dispatch them accordingly. This increases worker efficiency and productivity, which companies using MRM have reported can translate to as many as three more jobs per worker per week. At an average invoice of $250 per job, this adds up to $3,000 more revenue per worker per month.
Improving Employee Accountability
Managers can maintain close tabs on crews by receiving alerts if employees are stopped when they shouldn’t be, if they enter or exit a pre-defined area, or if the MRM application is turned off during business hours. These alerts help reduce the need for managers to physically check up on crews.
Conserving Fuel
MRM features such as geofencing and GPS navigation reduce fuel waste and vehicle wear and tear. Extra trips to the office are reduced, as is wasted driving time between jobs. At an average fuel price of $2.70 per gallon, just 15 out-of-route miles a day for medium trucks can cost a company more than $1,000 per year for each field employee. For heavy-duty trucks, the cost of out-of-route miles can exceed $2,000 per year.
Enhancing Customer Service
MRM improves customer service on many levels. With exact GPS locations of crews, managers can provide customers with accurate arrival times. And with greater efficiency, construction crews often accomplish more in a day, which allows them to finish their jobs sooner than expected.
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Friday, September 3, 2010