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ERP Software For Industrial OPS

Increased demand of ERP software for industrial operations after Covid outbreak.

The pandemic brought an opportunity for construction players to steer into an era of transformation. Companies looking to stabilize operations and recapture the growth lost in the crisis turn to technology for answers. According to Gartner, the market for hyper automation-enabling technologies will reach USD 596 billion in 2022, up nearly 24% from the USD 481.6 billion in 2020. This indicates a prominent rise in demand for cloud-based resource planning solutions — ERP (Enterprise Resource Planning).

Apart from being the survival kit for businesses in the pandemic, ERP is solving a host of finance and enterprise related challenges such as working capital predictions, cost visibility, enterprise planning for finance, supply chain, procurement, and other parts of the business, as well as financial closing processes and billing models. With access to accurate data and predictive analyses, construction players can avoid unnecessary risk while capitalizing on new revenue opportunities that change from time to time.

Reasons for the rising demand

Initially, survival and continuity were the major driving forces for the construction industry to embrace ERP. However, now the recovering BFSI, logistics and manufacturing sectors followed by increased government expenditure are considered to be the primary factors accelerating the need for the ERP in the post-covid world. Since ERP helps infrastructure companies identify and save costs from multiple sources, businesses can avoid revenue leakage and prioritize critical expenditures.

Effective planning and management for delayed projects is another contributor to the rising demand. Customized ERP paired with the latest technologies assist in better optimization of resources and promote rational and effective decisions.

Furthermore, the active demand crisis is compelling the industry to embrace proactive ways to engage with the customers. This has compelled the earlier traditionally-governed industry to become more insightful and sensitive towards using data to engage with customers for better sales.

Technology enabling agent

ERP’s role as a business resiliency agent is profound and widespread for the infrastructure sector. Technology is quickly becoming a foundation for integrating new-age technology solutions. Other hyper-automation technologies like Robotic Process Automation (RPA), Low-Code Application Platforms (LCAP), AI, and Virtual Assistants are found on the bedrock of a sound ERP system.

When embedded in ERP, IoT facilitates data collection, collation, analysis, and processing for businesses, empowering them to make informed decisions and strategies. This enables the construction enterprises to embrace effective supply chain management and customer relationship management (CRM).

A catalyst to error-free project planning

Allocating assignments and monitoring progress across different projects has always been challenging in the construction world. And now, with the pandemic, it’s been a priority even more. With the help of an ERP system, construction enterprises can easily monitor the status of each project, delegate assignments, create milestones, and keep track of the work time with just a few clicks. In addition, real-time data of resources enables enterprises to track the time spent on each task, making it easier for them to bill clients and monitor productivity.

Seamless exchange of information

The pandemic impelled enterprises to adopt the new work-at-home model. This culture is still running strong; however, the large-scale size and nature of the infrastructure sector make the exchange of information complex. Therefore, compiling and sharing data the wrong way is ineffective, impractical and not safe.

ERP makes the data exchange smooth through resources and firewalls that ensures optimal data security. As a unified platform, it makes the exchange of information streamlined and more efficient across different departments. Construction players can also provide restrictions on their data, which one can share with the client or seen by the employees.

A dire need for accurate decision making

The world’s economic status is still very uncertain; hence, any prediction for business is not just complex but risky to make. For Engineering, Construction & Infrastructure enterprises (EC&O), decision making is even more critical due to the sheer volume of investments involved.

A centralized ERP system improves decision making by providing a comprehensive view of a situation. Whenever enterprises are required to correlate information from different sources, the ERP software seamlessly extracts data and provides relevant criteria to make sound decisions. Every order can be processed in a unified manner from numerous pipelines of accounting, engineering, purchasing, billing and more, collecting and consolidating information and processing them into actionable results.

Scope and Possibilities

While large and medium-tier companies are well receiving the technology, some small-scale developers are yet to unlock ERP’s true potential for their business. Their challenges mainly revolve around bulging costs and low demands; however, these uncertain times pose massive continuity and survival risks. Hence sustainable adoption of ERP will help them cope with the changing times and ensure long term survival.

The infrastructure industry will unlock effective project budgeting, planning, and estimation through ERP. In addition, it will allow sustainable management of assets, inventory, procurement, customer relationship etc. Going forward, the role of ERP in the recovering infrastructure sector will augment, making the sector ready for the changing reality.

Highbar Technocrat Limited is one of the leading end-to-end IT solution provider for the #Infrastructure, #EC&O, #Real Estate, and #Power sectors. They are SAP Gold partner and offer a wide bouquet of digitally integrated solutions ranging from implementing SAP-based ERP solutions like S/4HANA, RISE, Cloud-based solutions to 5D BIM for mega infra-projects, RPA & IoT solutions, and many more. With an in-depth understanding and core competence of the construction & infrastructure industry, Highbar has demonstrated expertise in the Private, Public, and Government sectors covering roads, ports, smart cities, airports, railways, irrigation, power, water supply, as well as urban and industrial infrastructure like telecom, manufacturing, and mining sectors. Highbar is the perfect blend of domain knowledge in the infrastructure business with a team that is well equipped to understand and relate to the requirements of the sector.

To know more write us at enquiry@highbartech.com or call +91 8976711399

Written by — Mr. Ashok Wani, Head Technology & Innovation, Highbar Technocrat Limited

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A Guide to Creating a Digital Transformation Strategy

Since the early 1990s, the advent of digital technology has been disturbing financial markets and causing widespread havoc in various corporate sectors. Despite this, a significant number of business leaders are still failing to comprehend and implement disruptive technologies and effectively manage the cultural and market-related shifts these technologies are causing. Several businesses have begun their trip into the digital world without realizing that this journey needs to be at the centre of their overall approach to conducting business.

Ultimately, they make the mistake of applying legacy strategies and outmoded concepts to their digital projects, leading to the delivery of the digital business being capped, frustration, and failure. It is essential to note that business and digital strategies are not independent. To be competitive in the market today, it is not enough to merely have access to digital technologies. Therefore, incorporating digital components into an organization’s competitive strategy is essential.

How to construct a plan for digital implementation

The concept of digital transformation is not exclusive to significant firms; in fact, even medium-sized businesses are beginning to experience the need to develop. Many obstacles must be overcome for an organization of any size to adopt digital transformation successfully. These obstacles include the following:

The failure to handle inertia by accounting for the disturbance to personnel, which includes their job security, skills rotation, and mentality, is a significant contributor to inertia.

An absence of digital awareness among the top leadership, particularly chief executive officers and chief experience officers

If a corporation does not have effective organizational change management, its culture and structure are not adequately aligned with the digital transformation goals.

Being incapable of using contemporary methods of conducting business, such as agile development, DevOps, and iterative deployment

A mismatch between the goals that are set and the capabilities that can be achieved needs to be carefully evaluated for projects to be scaled effectively.

Putting into action a strategy for the digital transformation of business

It is essential to understand that every strategy must be digital when a company is digital. A digital strategy gives organizations the foundation they require to make good use of the digital resources they have available to them. This approach of thinking paves the path for firms to discover and capitalize on new opportunities and competitive advantage areas.

Additionally, it helps guide technology investment and budgeting, both of which must be regarded as critical functions of business strategy rather than merely the purview of the IT department. Keep in mind that firms can benefit from developing, testing, and monitoring their plans with the assistance of digital technologies such as data and analytics platforms, artificial intelligence (AI), trend detectors, and dynamic scenario tools and simulators.

Considering the significance and intricacy of the process, firms should adhere to the following phases to improve their chances of achieving success with digital transformation:

Obtain consensus on the motivations behind the digital transition. The goals and requirements of the business should drive the conversation rather than the technology; therefore, first determine your short, medium, and long-term objectives, and then begin looking into how you might accomplish them.

Prepare yourself for a shift in the culture. Build a culture of knowledge and learning that extends beyond top management and permeates the entire value chain and be prepared to deal with those resistant to change.

First things first, take a baby step that’s still strategic. It would help if you began with projects that produce results in no more than six months. By demonstrating a positive return on investment through these programs, you will develop momentum for additional, more extensive ventures.

Create a detailed plan for your technological development. This will assist you in determining which technologies are already in your possession and which need to be developed internally or obtained from external partners.

Find the ideal people to work with. These should not only have the required competence but also be complementary to your operations and understanding of your company. Keep in mind the importance of cultivating long-term partnerships.

Define key performance indicators, conduct evaluations, and adjust as required. Establish a feedback system to ensure that all involved parties gain new knowledge as the plan evolves and maintain the flexibility to adapt the system in response to the findings it yields.

Scale and transform are available. Look for chances to apply similar tactics to current places and connect more technologies to those already in use.

The Matrix of Change is a tool that Brynjolfsson and his colleagues developed. It is a valuable framework that can be used to analyze whether transformation complements your existing essential business processes. This matrix enables you to input ideas for your company and assists in analyzing the suggested digital transformation, such as adopting AI, machine learning, and neural networking. You may also use it to evaluate potential business opportunities. In addition, it shows whether these digital platforms will ultimately complement or compete with the processes already in place. Multiple components of a new system interact with each other, which can make it challenging to implement them in isolation.

This is like the situation that arises during the transformation of several business processes. This matrix helps assess whether the suggested changes are feasible, the ideal speed at which these changes should be executed, and the appropriate sequence. It can also assist in guaranteeing that implementing these changes is effectively adopted by the company.

About Us:

Highbar Technocrat Limited, an SAP Gold Partner, helps clients in India and abroad to help them manage change. Highbar adopts an integrated approach to help you rethink your business with high agility and efficiency. At Highbar, we see disruption as an opportunity to help clients transform their businesses with granular solutions. Handling change requires confidence in decision-making, and Highbar enables this confidence in clients.

Our forte offers digitally integrated solutions for the Infrastructure, EC&O, Real Estate, Mining, Oil & Gas, Power, Smart Cities, Government, Manufacturing sectors, and much more. Our domain expertise, combined with the ERP helps clients become intelligent enterprises and highly receptive to customers’ needs. With our strategic alliances, we help clients transform

business operations, leverage data, and integrate sustainability to match the speed of change.

For further information, don’t hesitate to contact us by email at enquiry@highbartech.com or by call at +91 89767 11399.

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What is Cloud ERP?

Inventory, order, and supply chain management, as well as assistance with procurement, production, distribution, and fulfilment, are just some of the essential business functions that can be integrated and automated by using enterprise resource planning (ERP) software. The term “cloud ERP” refers to an enterprise resource planning (ERP) system that operates on the cloud platform of a vendor rather than on an on-premises network. This provides businesses with the ability to access the system over the internet. ERP software also provides a single source of data. Because the program is accessed over the internet by organizations, a connection, and a web browser are required.

What is meant by the term “cloud ERP software”?

Because it is hosted by the ERP vendor and offered as a service to organizations, cloud-based enterprise resource planning software provides the same or better capabilities than on-premises systems while eliminating the majority of the drawbacks, such as upfront licensing fees.

According to a statement made by IDC in its analysis, “demand for cloud-based ERP systems is continuing to expand due to their capacity to access and analyze enormous volumes of data in near real-time.”

This entails providing sales teams with real-time insights into the inventory and freeing up the finance teams to maintain a close eye on the cash runway and swiftly respond to audits or other calls for performance data.

How does an ERP system run on the cloud?

Cloud ERP solutions use several different technologies connected to the internet at a breakneck speed. The cloud ERP is constantly online, and the ERP provider is responsible for handling any necessary security updates. Your team’s only responsibility is to log in and use the ERP system and the data it contains. This could result in a lower total cost of ownership compared to more traditional ERP systems housed on servers that the organization owns.

Cloud-based enterprise resource planning systems are typically accessible to mobile and desktop users. They contain a diverse selection of business applications designed to keep your company operating effectively while providing a satisfying experience for customers and producing profitable business results.

In the post-COVID business climate, when an increasing number of employees are working from home and other distant places, the importance of having the ability to log in from any location securely cannot be overstated. Cloud-based enterprise resource planning systems have a nearly endless potential to scale and enable your team to access whatever information they require regardless of where their work takes them. This includes customer sales meetings, remote worksites, and your home office.

The capacity to access client information, sales history, financial data, human resources management tools, live operating metrics, the health of the supply chain, and other features are among the most critical aspects of the product. A cloud enterprise resource planning system may integrate practically all of the computer systems that your firm needs.

You have the option of selecting from a variety of deployment models, each of which comes with modules and configurations that are tailored to the specific demands of your kind of organization. This might help your team remain focused on the appropriate measurements and workflow to fulfil your firm’s goals.

The Concepts Behind Cloud ERP

As we delve deeper into the topic, it is essential to have a solid understanding of the following fundamental ideas linked with cloud ERP:

Regarding deployment strategies, enterprise resource planning (ERP) software can either be installed on-premises or on privately hosted servers or purchased in an “as a service” approach. Cloud ERP capability may typically be delivered in a shorter period than on-premises ERP functionality; however, businesses still need to schedule adequate time for planning, data migration, customization, configuration, and staff training.

Cloud-based enterprise resource planning (ERP) software is enterprise resource planning software housed offsite on the servers of the ERP provider and is given as a service, accessed through a web browser.

On-premises ERP is an abbreviation for enterprise resource planning software installed locally on a company’s computers and servers and controlled by internal or contracted IT professionals. The software and the infrastructure that supports it are managed, stored, and maintained internally at the company.

When companies look to outsource their information technology activities, hosted deployment options are frequently used. A corporation or a hosting provider controls the deployment of enterprise resource planning (ERP) software and the accompanying infrastructure in a hosted ERP system. Although this configuration does offer certain cloud-based advantages, it is not a genuine “as a service” paradigm.

End-to-end security refers to a safe and encrypted connection between a cloud-based ERP provider and that provider’s customers.

About Us:

Highbar Technocrat Limited

, an SAP Gold Partner, helps clients in India and abroad to help them manage change. Highbar adopts an integrated approach to help you rethink your business with high agility and efficiency. At Highbar, we see disruption as an opportunity to help clients transform their businesses with granular solutions. Handling change requires confidence in decision-making, and Highbar enables this confidence in clients.

Our forte offers digitally integrated solutions for the #Infrastructure, #EC&O, #Real Estate, #Mining, #Oil & Gas, #Power, Smart Cities, Government, Manufacturing sectors, and much more. Our domain expertise, combined with the ERP helps clients become intelligent enterprises and highly receptive to customers’ needs. With our strategic alliances, we help clients transform business operations, leverage data, and integrate sustainability to match the speed of change.

For further information, don’t hesitate to contact us by email at enquiry@highbartech.com or by call at +91 89767 11399.

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SAP Ariba and Its Benefits

Purchasing goods and services is one of the most critical tasks performed by every company. Managing an effective and efficient supply chain has a significant bearing on an organization’s bottom line.  A single integrated platform can transform your supply chain, procurement, and contract process, which will assist you in attaining higher sourcing savings and managing your spending, the name of this solution is SAP Ariba.

Your organization has a demand for increased procurement capabilities. As the pace of business continues to quicken, consumers are spending more money than ever across more channels and using a greater variety of payment methods. In addition, customers place higher expectations on the companies they do business with, including those they buy from.

The procurement and supply chain supervisors must continue to control all the costs, manage the risks buried in your transactions, and do all of this while ensuring that the process does not slow down progress.

By using solutions from SAP Ariba and software from SAP Business Network, which are the market leaders in software for managing expenditures. You can equip your business to be responsive and responsible, both now and in the future.

The entire purchasing procedure can be managed by the buyer, who is also responsible for controlling spending, locating new sources of savings on direct and indirect goods, and constructing healthy and ethical supply chains.

As a result, suppliers can connect with profitable customers and scale existing relationships

efficiently, streamlining sales cycles and improving cash control along the way.

Continue reading to learn more about what SAP Ariba is, what its features and benefits are, and why you should look for a consultant that is not only well-versed in SAP but specifically in Ariba as well to help you with your next project if you want to get the most out of it.

Let’s dive in.

What does SAP Ariba stand for?

To put it more succinctly, SAP Ariba is a solution that runs in the cloud and enables your buyers and suppliers to conduct business on a unified platform. A company known as Ariba first developed the answer in 1996, and in 2012, SAP purchased it after having previously acquired it. (This is how SAP Ariba got its new name.)

A few of the process areas that SAP Ariba offers are SAP Ariba Sourcing, SAP Ariba Discovery, SAP Ariba Buying, SAP Ariba Buying, and Invoicing, SAP Ariba Contract Management, SAP Ariba Spend Analysis, Ariba Supplier Risk, and SAP Ariba Supplier Lifecycle and Performance.

Integration of SAP and Ariba can improve your overall vendor management system, which will save you money on the process of procurement and will simplify how you conduct business in general. The only solution that addresses the entire sourcing and the procure-to-pay process is SAP Ariba. In addition to this, it possesses the largest business-to-business network in the world. In SAP Ariba parlance, the SAP Ariba Network is referred to as the company’s “backbone.” It enables you to communicate with your suppliers in a safe environment within the cloud, facilitating the interaction between purchasing departments and buyers and sellers.

The network comprises more than 4 million suppliers and buyers from over 190 countries, and it facilitates the transaction of nearly $3 trillion worth of goods and services annually. In terms of its total commercial value, this makes it more significant than eBay, Alibaba, and Amazon put together.

Advantages of Using SAP Ariba

By providing an organization with a solution suite integrated into the digital core of SAP S/4HANA, SAP Ariba enables it to transform its spending management. The following is a list of some of the primary advantages offered by SAP Ariba:

Integration with SAP Supplier Relationship Management (SRM) and other enterprise resource planning software helps to streamline the procurement and sourcing process

Offers visibility as well as scalability in the management of supplier risks, compliance, and sustainability

You can use it regardless of where you are because it is a cloud-based service

The initial financial investment required to set it up is lower

It makes sure that your onboarding, segmentation, and qualification of suppliers are all tailored to the specifics of each location, category, and business unit

The Ariba Network has more than 4 million companies connected to it.

Transactional data can be moved around more easily with SAP Ariba. Thanks to its optimal integration, the Ariba solution can quickly transfer details about invoices, goods receipts, and purchase orders

When it comes to connecting the ERP system with the Ariba solution, we can make use of the integration toolkit

About Us:

Highbar Technocrat Limited, an SAP Gold Partner, helps clients in India and abroad to help them manage change. Highbar adopts an integrated approach to help you rethink your business, with a high level of agility and efficiency. At Highbar we see disruption as an opportunity to help clients transform their business with granular solutions. Handling change requires confidence in decision making and Highbar enables this confidence in clients.

Our forte is offering digitally integrated solutions for the Infrastructure, EC&O, Real Estate, Mining, Oil & Gas, Power, Smart Cities, Government, Manufacturing sectors, and a lot more. Our domain expertise combined with the ERP helps clients become intelligent enterprises and highly receptive to the needs of customers. With our strategic alliances, we help clients transform business operations, leverage data, and integrate sustainability to match the speed of change.

For further information, don’t hesitate to contact us by e-mail at enquiry@highbartech.com or by telephone at +91 89767 11399.

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8 COMMON PROJECT MANAGEMENT MISTAKES — AND HOW TO AVOID THEM

Project management is the basis of the success of your business. While some unforeseen circumstances may hinder the success of your project management, avoiding the avoidable can highly mitigate the chances of failure. It is best to learn from others’ mistakes, and that is why we have made a list of the top 8 common mistakes that make your project management inefficient.

PROJECT MANAGEMENT MISTAKES:

Not realizing the need for an experienced project manager

A project manager is like the engine to the project. If you do not hire a project manager who has had experience or at least vast knowledge in the kind of project he has to manage, there is a high chance of mishandling the project.

Undefined goals:

The projects should always be built on goals rather than processes. If the goals of a project are not clearly defined before embarking on it, the situation will get chaotic very soon.

Frequent changing of plans:

Every project has a plan A, plan B, and so on for its success. But it is not feasible to keep swinging to-and-fro between them.

Insufficient resources: Be it the lack of the right number of skilled members, insufficient knowledge sources, or budgetary imbalance — insufficient resources become the greatest bottleneck in project management.

Communication gap: When many people are working on a particular project from the technical department to the group members, stakeholders, leaders, managers, etc., there is a high chance of a communication gap developing in them.

Scope creep issues: This is a very common problem when it comes to project management, where the changes in the project begin with a small change, and these small changes pile up into a seemingly never-ending demand of changes making the project a wreck.

Not making use of technology: You may be old school and feel like you do not need high-end software applications for project management. But the truth is that not using a good project management software application makes you lag and in turn the process inefficient.

Overestimation:

It is good to have confidence in your team but overestimating anything leads to disappointment. The major problems associated with over-estimation include impractical deadlines, unachievable goals, and underestimating budgetary needs.

HOW TO AVOID RISKS IN PROJECT MANAGEMENT

While the risks mentioned above may feel too real and scary, there are simple things to consider if you want to avoid them.

Hire an experienced project manager

A project manager specializing in the kind of projects you are planning to work on. Every project is unique but having some knowledge about the basics of project management in previous projects greatly gives you an edge

Have crystal clear goals and objectives

Your goals should be what your project is built on. Your methodology may change, resources may change, a bottom line may be twisted, but your objective should never change.

Never look back at plans that do not work

Stick to a particular plan until you can ensure that it does not work. Once you are sure that plan A has failed, simply chuck it out of the window and start afresh with plan B. The worst plan is to keep swinging between 2 plans.

Have a practical idea of resources

Having extra resources is better than pausing a project to the want for resources. Therefore, resource planning is crucial and depends greatly on the person’s experience. This is why choosing an experienced project manager may prevent the bottleneck of insufficient resources.

Communicate across all channels

Whenever a decision is taken, or an order is given, every person associated with the project must be aware of it. This prevents any clash of ideas or methodology in the future. Also, try and document the communication in emails or text messages so that any miscommunication is avoided.

Define the scope at the very outset

To prevent the scope creep issue, you must define the scope of a particular project at the very outset. Having fixed boundaries to the scope does limit the scope of the project and ensures that the project does conclude.

Use a project management software

The complex projects with a very grand set motive broken down into hundreds of actionable steps cannot be handled efficiently and quickly by the human brain. Stress a little less, and leave the major part of the Management to the project management software

Be practical

Projects are often planned in an idyllic condition where real-world limitations are ignored. Practically, there may be a tonne of challenges that you might have to incur in the process of project completion. Keeping in mind a rough estimate of these hurdles helps manage the project better

WHY PROJECT RISK ANALYSIS & MANAGEMENT IS IMPORTANT:

Risk analysis and management is the practical application of the idea of “be prepared for the worst” As mentioned earlier, most projects are planned in an idyllic setting, but the real world is not ideal.

Risk analysis is a procedure that continues throughout the life of the project. It identifies the loopholes in the particular stage of the project and its risks. The risks may not be present at the moment of the analysis, but the analyser extends the current pattern of the project path and “foretells” any threats to the project objectives. This way, one can mitigate the risks associated with the project because if they arise, the team will be prepared to handle them.

PROJECT RISK ANALYSIS & MANAGEMENT BENEFITS:

Project Risk Analysis and Management offers a wide range of benefits to the project’s success. Here are the top 5 such benefits that you can reap by applying the basics of Project Risk Analysis and Management:

Detection of problems

The project plan may seem fool-proof, but there may be many loopholes detected once the Project Risk Analysis is done. If detected at the very outset of the project, these loopholes greatly mitigate the problems that may arise later!

Better Preparation

If there is a sudden risk factor detected during the project that may pose a threat, later, the team of experts can start working on it beforehand. This way, you are prepared to face a problem even if you are not sure it will arise or not. Furthermore, this sense of preparation gives you and your teammates a lot of confidence in the project.

Better Decisions

Decision-making is a continuous process throughout the journey of a project. With every decision made, there are some pros and cons. Risk analysis helps to pre-determine the risks associated with the choice you make and therefore helps you choose better.

Alleviated Disappointments

When project resources are over-estimated concerning the timeline, budget, or goals, it leads to disappointments. Risk analysis helps you define a practical bottom line and thus gives you a fair idea of the real world.

Elevated Success Rates

Effective risk management ensures a higher chance of success for the project that you undertake.

PROJECT RISK ANALYSIS & MANAGEMENT MODEL:

A project risk analysis and management model or PRAM is a flow of activities or a plan of action chosen to identify and eliminate the risks associated with a project. Though each unique project may have its own set of requirements for a model, some universal models act as frameworks on which all the other models are built. The essence of all these models is to break up the risk analysis and Management into smaller phases to simplify their implementation. One such model with 5 phases is elaborated upon below.

PROJECT RISK ANALYSIS & MANAGEMENT PHASES

A simple 5 step model can be used to analyse and manage the risks associated with project management:

Identification — The first step is to identify the risk associated with a particular project stage.

Analysis — The next step is to analyse how severe the risk is and if it needs immediate attention and if you have enough resources to manage the risk.

Coming up with solutions — Once the threat is identified, you need to develop all the possible solutions to the problem.

Implementation of the solution — You must analyse and implement the best possible solution out of all the solutions worked out.

Analysis of outcome — It is crucial to analyse the effect of the solution on the performance of your project to ensure its effectiveness.

PROJECT RISK ANALYSIS & MANAGEMENT TOOLS

Many tools are applied in the Project Risk Analysis and Management practices. The top three such tools are:

Root cause analysis: As the name suggests, this tool analyses the root cause of the problem arising in the project. This is a great tool to solve a problem that has already arisen and helps you eliminate the very cause.

SWOT analysis: The expansion of the acronym SWOT is-Strengths, Weaknesses, Opportunities, and Threats. This is the most popular tool implemented to analyse all the mentioned aspects of an option before implementing it.

Brainstorming: This “tool” should never be underestimated. Whenever you have to deal with risks associated with the project, brainstorming in a group or as an individual helps you solve many problems.

A quick tip- make sure to keep a written record of whatever is going through your mind when you are brainstorming.

So, you see how your project is subject to many mistakes, but simple conscious efforts can help you avoid them and take your project to its desired conclusion.

Highbar Technocrat is one of the leading end-to-end IT solution providers for the Infrastructure, EC&O, Real Estate, and Power sectors. They are SAP Gold partner and offer a wide bouquet of digitally integrated solutions ranging from implementing SAP-based ERP solutions like RISE with S/4HANA, Cloud-based solutions to 5D BIM for mega infra-projects, RPA & IoT solutions, and many more. With an in-depth understanding and core competence of the construction & infrastructure industry, Highbar is the perfect blend of domain knowledge in the infrastructure business with a team that is well equipped to understand and relate to the requirements of the sector.

To know more write us at enquiry@highbartech.com or call +91 89767 11399

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DIGITAL TRANSFORMATION IN REAL ESTATE INDUSTRY

The modern-day industries have no choice but to accept the wave of digitalization sweeping worldwide. This wave of digitalization that was slowly taking in all the industries accelerated manifold under the influence of the COVID-19 pandemic when almost everything was digitalized.

Consequently, even those industries that were in the nascent stage of digitalization grew to use and derive the benefits of the trends. The flood of digitalization has also affected the real estate industry, and it is only for the betterment! Digitalization has proved to be revolutionary for the real estate industry in many fields and has helped to overcome many bottlenecks in real estate industry.

Here we will elaborate upon how the digitalization of the real estate industry has helped in each phase of a real estate project and made everything simpler for both the customer and the service provider.

CHALLENGES IN THE REAL INDUSTRY:

Financial Plans: The financial plans which are set up are all manual. Along with it, the cost and budget planning are also done manually. This leads to higher manual intervention and increase the chances of mistakes.

Project Lifecycle: There are multiple aspects of the project such as procurement of the material, monitoring of the contract etc which are never constant and keep changing. Management of the project lifecycle manually is very time consuming and cumbersome process.

Land Acquisition: Due to lack of technology, there is less visibility into the progress or in payments and documentations.

Manual intervention across Campaigns: Due to manual intervention, there is immense loss of leads and business opportunity which affects the revenue.

Lack of Real time visibility: The projects require proper visibility on material stocked, parking category, discount monitoring etc which goes missing when there is no digitalization in place.

SOLUTIONS OFFERED:

Project planning and construction management

Project planning is one of the most daunting tasks of implementing any real estate project. The major bottlenecks are infrastructure budget planning, integrated BOQ management, Manual PR/ Indenting, and progress updates. Digitalization of the real estate industry can be end-to-end integrated project management that improves progress by 20%.

Procurement and services

Real estate is not just about the building as a structure, but it takes care of the functionalities- securities, taxes, parking management, etc. There are many considerations like standard card rates, input tax credit setup, composite supply orders- that, if left to human handling, can take a lot of time and slow down the procurement process. With the digitalization wave, the procurement procedure has become more efficient with great transparency.

Finance and Accounting

This is where digitalization makes the greatest difference. With the right use of technology, human effort can be reduced by 40%, which means it is faster, more efficient, and reduces the chances of human errors. So be it an unreconciled amount in the bank account, visibility of the weekly cash flow, TES compliance, GSTR reconciliation, or integration for vendor discounting- automated accounting, controls, and IMS can take care of it all!

Handover to facility management

With the digitalization of real estate, it becomes easy to hand over the plan to facility management to ensure the project passes all industry standards and adheres to snag monitoring demand.

Presales

Handling the hundreds and thousands of registrations manually can be a very daunting task. It is nearly impossible to select, sort, and organize the registrations that come in every day, and it is even more challenging to offer discounts to them. The AI-powered software takes care of all the registrations for you. With cloud storage, the data can be accessed anytime, from any corner of the world.

Customer Onboarding

For the effective execution of any project, good coordination between the various working departments of your company and between the company and authorities like Real state’s regulatory authority is crucial. The major bottlenecks are- liaisoning and Real Estate Regulation Association management, and management of cash flow. The management process becomes extremely easy, convenient, and organized with ERP/CRM

Post Sales

Whether getting an architect certificate, communicating with a customer, checking for defaulter, or coordinating the collection process, everything becomes easier when you get access to 360-degree lead visibility and other relevant data with CRM. Since the process is digitalized, the boundaries of time and place are dissolved. The customers can connect with the buyer and keep exploring options at any time of the day, from anywhere.

BENEFITS OF DIGITALIZATION

The customer experience is very smooth and elevated with the greatest level of transparency, ease in communication, and better opportunity for the real estate company to pitch to the customers.

The visibility of cash flow and cost flow is greatly improved so that the losses and gains-all transactions are transparent and can even be analysed with AI-powered software applications

The quantity, cost, and budget monitoring become very proactive, and it becomes very easy to integrate the various departments of the real estate while considering a project budget.

Since the trade or project is monitored at every step, there are fewer to no loopholes or lags. This results in improved consistency, and the project is completed in time.

The digitalized procedures are more economical than the non-digitalized ones. Both direct and indirect costs are greatly alleviated.

The marketing methods are more effective, and it is easier to change and manage the ongoing campaign with the digitalization of the real estate marketing

The customers can also look at the sites with videos and 360-degree views and simulations made available on the website.

Highbar Technocrat is one of the leading end-to-end IT solution provider for the Infrastructure, EC&O, Real Estate, and Power sectors. They are SAP Gold partner and offer a wide bouquet of digitally integrated solutions ranging from implementing SAP-based ERP solutions like S/4HANA, RISE, Cloud-based solutions to 5D BIM for mega infra-projects, RPA & IoT solutions, and many more.

With an in-depth understanding and core competence of the construction & infrastructure industry, Highbar has demonstrated expertise in the Private, Public, and Government sectors covering roads, ports, smart cities, airports, railways, irrigation, power, water supply, as well as urban and industrial infrastructure like telecom, manufacturing, and mining sectors. Highbar is the perfect blend of domain knowledge in the infrastructure business with a team that is well equipped to understand and relate to the requirements of the sector.

To know more write us at enquiry@highbartech.com or call +91 8976711399

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INTELLIGENT ERP – THE ESSENTIAL INGREDIENT IN THE POST-COVID INFRASTRUCTURE INDUSTRY

The pandemic forced the world into an era of uncertainty and loss, but what it also brought is an opportunity for change. Considering the increase in dependency on technology and changing work culture, construction companies are looking forward to adopting ERP (Enterprise Resource Planning).

An intelligent ERP solution enables enterprises to manage all the information and functions from a single database. Thus, the solution helps to reduce the overall implementation cycle time and ensure quicker ROI. As per a recent Gartner report, the market for hyper automation-enabling technologies will jump to $596 billion in 2022, up nearly 24% from the previous $481.6 billion in 2020. This clearly shows a significant rise in demand for cloud-based resource planning solutions – ERP.

Reasons for the spiking demand –

Though ERP had a well-established market before, the extreme risk for survival and continuity were the primary driving forces for the construction industry to adopt ERP. Moreover, effective planning and management for delayed projects and the government’s increased expenditure in the recovery of BFSI, logistics and manufacturing sectors are considered to be the primary factor for fast-tracking the need for ERP. Infrastructure companies can dodge revenue leakage and prioritise critical expenditures using customised ERP paired with the latest technologies to optimise resources better and promote coherent and effective decisions.

Additionally, the Engineering, Construction & Infrastructure enterprises (EC&O) were compelled by the crisis to shift to more proactive ways to engage with the customers. This has obligated the widespread conventional industry to become more information-driven to create a vital sales function.

Howe ERP is empowering businesses in the wake of uncertainty-

ERP’s role as a business risk mitigator is crucial in the current situation. This gives a solid underpinning for the industry to integrate modernised technology solutions. In addition, other hyper-automation technologies like robotic process automation (RPA), low-code application platforms (LCAP), AI, and virtual assistants can be easily accommodated in the ecosystem with a pre-existing ERP setup.

When coupled with an agile ERP, IoT facilitates accurate data collection, analysis, processing and warehousing for businesses, empowering them to make insightful decisions, plans and strategies. It also established an intelligent supply chain network and a cohesive setup for customer relationship management (CRM).

Future scope and possibilities –

Adopting a tailor-made ERP will help small and large scale enterprises deal with the current scenario in the best way possible while ensuring long-term survival. It will provide better control of projects through end-to-end visibility across projects from different locations. Also, the long term use of ERP will ensure better governance, resource management and reduce costs and wastage.

Implementing ERP followed by effective project budgeting, planning, estimation, and overall management will allow sustainable management of assets, inventory, procurement, customer relationship, etc. In the future, the role of ERP in the recovering infrastructure sector will enlarge, making the industry ready for the changing reality.

Highbar Technocrat is one of the leading end-to-end IT solution provider for the Infrastructure, EC&O, Real Estate, and Power sectors. They are SAP Gold partner and offer a wide bouquet of digitally integrated solutions ranging from implementing SAP-based ERP solutions like S/4HANA, RISE, Cloud-based solutions to 5D BIM for mega infra-projects, RPA & IoT solutions, and many more. With an in-depth understanding and core competence of the construction & infrastructure industry, Highbar has demonstrated expertise in the Private, Public, and Government sectors covering roads, ports, smart cities, airports, railways, irrigation, power, water supply, as well as urban and industrial infrastructure like telecom, manufacturing, and mining sectors. Highbar is the perfect blend of domain knowledge in the infrastructure business with a team that is well equipped to understand and relate to the requirements of the sector.

To know more write us at enquiry@highbartech.com or call +91 8976711399

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TOP 10 WAYS IOT IS TRANSFORMING BUSINESSES TODAY

The importance of IoT to businesses has increasingly become apparent to executives. The internet of things (IoT) is a network of internet-connected gadgets that can gather and send data over a network.

Communication devices and identity chips with cloud and analytics engines have resulted in a new era of business automation. For organizations of all sizes, IoT provides continuous input and helps to make the best decisions.

Healthcare, energy, automotive, manufacturing, and transportation are all transformed by the Internet of Things. In this, we will discuss ten ways in which IoT is revolutionizing the industry.

According to Forbes, the experts predicted that the IoT market in North America is set to grow because of the growth in smart factories and businesses. Globally, consumer electronics and transportation are the fastest-growing sectorsin the world’s largest economy.

What are the commercial implications of the Internet of Things?

Businesses can use IoT to improve customer experience as a result of the digital revolution. Here are ten ways that the Internet of Things is revolutionizing business for the better, and they apply to all industries:

Asset tracking and inventory management.

Do you have trouble keeping track of your inventory and managing it? Are you losing a lot of money because of misplaced assets?

By providing confident automated control choices, IoT applications can help you manage your inventory. Similarly, using IoT to track assets in the supply chain can be an excellent way to find items missing in transit.

Installing Internet of Things (IoT) devices and software in your warehouses and storage units can help you control inventory changes. Furthermore, integrating surveillance systems with IoT and analytics might allow preventing theft before it occurs.

Perception and Data Sharing.

Data collection and transmission are essential to almost all businesses, and IoT adoption has transformed how data is processed. IoT apps can track the patterns in which a user communicates with a device and enable broader access to personal data.

The program becomes smarter and provides a better user experience as it learns from the patterns. Simultaneously, IoT products assist businesses in understanding data to grow their enterprises. You can utilize the information to research consumer needs, the buying cycle, the potential for improvements and inventions, and marketing and advertising strategies.

Creating New Business Lines is a process that entails the creation of new business lines.

With the predictive maintenance algorithm built in the IoT platform, businesses may manufacture products and monitor their performance. The ability to transport IoT data across the organization’s ecosystem of consumers and partners opens new avenues for innovation, such as continuous engagement and value-added services.

Market positioning that works.

Enterprises can design strategies to satisfy customers’ expectations because they can absorb, process, visualize, and respond to large volumes and various data. They’re getting a 360-degree view of their consumers’ tastes thanks to internet-connected devices, and they’re creating campaigns that generate cash from the audiences. It also aids in client segmentation, the generation of personalized offers, and customer experience enhancement.

Real-Time Insights are a must.

Sensor-based real-time data from processes, devices, and people are transforming businesses, as visibility into what is going on can be a game-changer. We’ve already seen innovation in the main areas, particularly in retail. Retailers may stock products on-shelf and enhance profitability through effective sales and stock management by receiving real-time buyer insights.

The Internet of Things is essential for integrating objects such as systems and intelligent cameras to function together. As a result, a business can make more informed decisions, eventually resulting in business model improvements that help it meet its goals.

Facilitate the delivery of services through several channels.

It streamlines the overall purchasing experience; an omnichannel approach to sales is highly acceptable today. The Internet of Things (IoT) plays a significant role in supporting this service and dramatically enhances the user experience. Organizations and manufacturers can monitor operations, status, and service levels from remote locations thanks to incorporating sensors on internet-connected devices. They can also provide prompt support as and when customers demand it.

Accessibility, efficacy, and productivity are three essential factors to consider.

Customers, above all else, expect prompt delivery. Most business partners, such as logistics service providers and suppliers, use IoT technology solutions to ensure speedier order delivery. Things don’t just close because they’re procesed quickly. Businesses also require high levels of efficiency and production. You may boost your company’s productivity by gathering better market and consumer information. IoT can also help orchestrate considerable automation and provide real-time operational efficiency feedback.

You should improve customer service.

Customers dissatisfied with your product are unlikely to provide favorable feedback, resulting in a drop in market income.

The widespread use of chatbots and artificial intelligence in conjunction with IoT places a premium on customer happiness and provides business owners with a unique window into their customers’ life. Chatbots analyse data and identify flaws in any service or product that they can fix. Integrating AI into IoT operations gives customer relationship managers valuable data and provides consumers with immediate assistance, allowing them to use the products better.

It would help if you generated new consumer demands.

Customers began to demand additional services as they discovered the benefits of IoT applications. For example, intelligent refrigerators generate grocery lists based on their supplies. Ten years ago, these would have appeared naïve. Refrigerators will soon include this as a regular feature.

Modified Consumption Model.

Changes in consumption models caused by the internet of things impact businesses. Flexible consumption necessitates a new business strategy that revolutionizes product acquisition. We’ve progressed from buying a product to paying for it when we use it. Thanks to the Internet of Things, it is easier to measure a product’s usage and charge by usage.

Conclusion.

The benefits of IoT are evident, and the Internet of Things is about to change how businesses may benefit from it. HighbarTechnocrat has not only boosted productivity and profitability but also ensures that clients receive the most outstanding services and products at the right moment.

Companies that have implemented IoT have seen improved business potential due to being able to respond more quickly to client needs. That means using IoT devices to enable business could put you on the cutting edge of changing business customer contact trends.

Highbar Technocrat is one of the leading end-to-end IT solution provider for the Infrastructure, EC&O, Real Estate, and Power sectors. They are SAP Gold partner and offer a wide bouquet of digitally integrated solutions ranging from implementing SAP-based ERP solutions like S/4HANA, RISE, Cloud-based solutions to 5D BIM for mega infra-projects, RPA & IoT solutions, and many more. With an in-depth understanding and core competence of the construction & infrastructure industry, Highbar has demonstrated expertise in the Private, Public, and Government sectors covering roads, ports, smart cities, airports, railways, irrigation, power, water supply, as well as urban and industrial infrastructure like telecom, manufacturing, and mining sectors. Highbar is the perfect blend of domain knowledge in the infrastructure business with a team that is well equipped to understand and relate to the requirements of the sector.

To know more write us at enquiry@highbartech.com or call +91 8976711399

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ALL YOU NEED TO KNOW ABOUT 5D BIM IMPLEMENTATION

Out of all the industries, there is no doubt that the construction industry is always on deadline. However, factors like backward construction management, low management efficiency, lack of expert knowledge on delivery of projects, poor timing etc., could act as a roadblock in delivering quality to the clients.

One and the foremost reason that helps construction firms get an advantage is to complete their projects with sustainability, on time, and providing good quality of work. Today India has one of the largest real estate sectors, with some very rapid changes occurring now and then. Hence, the usage of technologies such as BIM in the entire world has become famous

BIM – Building Information Modelling is now wholly transforming how the whole work process gets managed and proceeded in the construction industry. With the help of BIM, professionals can primarily benefit from the same by improving their budget analysis and cost estimations

5D BIM is the 5 – dimensional visualization of the project, consisting of cost considerations and budgetary, tied up with the project. 3D primarily deals with the 3-dimensional depiction, consisting of design and geometrical parameters. 5D BIM allows the stakeholders to understand, analyse, discover, and record all the impacts on the project cost.

5D helps the contractors visualize the risk at a very early age and improve the entire decision-making process for the project’s overall success.

CHALLENGES IN THE MEGA CONSTRUCTION PROJECTS:

Cost Overrun: As the name suggests, the size of the mega projects is massive. Hence it is evident that the cost of these projects will also sky rocketing. But with such a big project, managing the cost becomes one of the biggest bottlenecks . The majority of the time, this leads to overrunning of the costs, which disrupts the project’s entire budget.

Time Overrun: Cost overrun is indeed one of the biggest problems of the mega project, but there is . Since the scale of these projects is vast, they also end up running over time and delaying their schedule. In the construction industry, where the clients have spent a considerable sum of money, delay in projects portrays a terrible image.

Quality Adherence:  Quality is indeed one of the foremost things which one should focus on, but when the project is significant,

5D BIM IMPLEMENTATION – BENEFITS:

When contractors start investing both their time and energy towards the Implementation of 5D BIM, there are plenty of advantages attached to it allows linkage of the 3D models to costing and budgetary heads in real-time, which simplifies the decision-making process and speed, making the BIM model very accurate.

PRIMARY BENEFITS OF 5D BIM IMPLEMENTATION ARE AS FOLLOWS:Accurate Cost Estimation & Forecasting:

With the help of 5D BIM implementations, it helps the contractors create accurate estimates for the cost. Additionally helping in accurately identifying the building components from the 3D models. This helps the project stakeholders develop reliable cost estimates from the beginning for the entire project. When the estimation for the cost is done correctly, there are fewer chances of losses or risks happening.

Detailed Quantity Take-Offs:

As per the industry surveys, estimators spend a lot of time theirs to create quantity take-offs. But the 5D Implementation helps in providing space for automation for take-offs. This eventually helps in saving time on the BOQ generation and eliminates any chances of errors due to any manual reasons. When the process for the BOQ model gets automated, the estimators can spend their saved time on some very critical aspects, such as the generation of pricing models or assessing financial risks.

Faster Decision-Making Process

When the process for cost estimation and budgeting is super quick, it becomes straightforward for the architects and the other key decision-makers to build on better decisions quickly. Be it the owner, contractor or the sub-owner, the decision is very transparent, which boosts the speed for the completion of project development.

Asset Information Management:

Asset tagging with the models, track assets and sub-assets, which can be further used during the operation & maintenance phase. Have additional information, Dimension, Coordinates, Volume etc. The information is further utilized for processing. Common platform for design/drawing, transmittal, review, approval. Cost dimension (5D) added to Intelligent 3D model – SAP integration, monitor actual vs. estimated cost and simulate actual progress with cost.

BOQ & BOM – WHAT IS IT, AND HOW IS BIM IMPROVING GENERAL PRACTICES

Both BOQ and BOM act as great support to the project planners and contractors in understanding the inventory requirements associated with the project. Both BOQ and BOM go hand-in-hand, which enhances the overall planning process. It also reduces all the chances of errors or any shortage of inventory during the project’s progress, which might act as a hindrance.

5D Implementation can help in bringing out unprecedented efficiencies to the overall project lifecycle, which also helps solve issues related to budget and cost at a much later stage. The project process can be very successful with the Implementation of 5D.

BY HIGHBAR TECHNOCRAT LIMITED

With all-new integrated 5D BIM & ERP for metro projects, there will be better project management through 5D BIM. It will also become easier to portray the real metro virtually, backed up by solid technology. Usage of Collaborative platform for managing engineering design & drawings. The platform will be used across the ecosystem, DDC, GC, Contractor etc.

Overall, Highbar Will leave no stone unturned in providing IT solutions that are combined with the project management practices with the highest level of visibility and security.

Highbar Technocrat is one of the leading end-to-end IT solution provider for the Infrastructure, EC&O, Real Estate, and Power sectors. They are SAP Gold partner and offer a wide bouquet of digitally integrated solutions ranging from implementing SAP-based ERP solutions like S/4HANA, RISE, Cloud-based solutions to 5D BIM for mega infra-projects, RPA & IoT solutions, and many more. With an in-depth understanding and core competence of the construction & infrastructure industry, Highbar has demonstrated expertise in the Private, Public, and Government sectors covering roads, ports, smart cities, airports, railways, irrigation, power, water supply, as well as urban and industrial infrastructure like telecom, manufacturing, and mining sectors. Highbar is the perfect blend of domain knowledge in the infrastructure business with a team that is well equipped to understand and relate to the requirements of the sector.

To know more write us at enquiry@highbartech.com or call +91 8976711399

[highbartechnocrat]

SUPPLIER MANAGEMENT- PROCESS, BENEFITS & THE BEST PRACTICES

Each organization engages with specific suppliers to deliver various types of goods & multiple services for maximizing the performance of their business. Therefore, suppliers form an indispensable part of any business are extremely critical, and managing the suppliers is hence essential.

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To successfully manage suppliers, you must know the various aspects of supplier management, their procurement, parameters to evaluate them, their credibility, the actual process of their work, how much time they will take to deliver a product, payment terms.

Here is everything you require to know to assist your vendor management efforts.

WHAT IS THIS SUPPLIER MANAGEMENT?

Supplier management can be defined as how an organization acquires maximum monetary value for its supplies. The hassle-free runningof an organization depends on these supplies. This article will talk about the fundamental requirements of supplier management, its various processes, and its advantages.

BEST PRACTICES FOR SUPPLIER MANAGEMENT

Adopt the supplier management process

The supplier management systems generally deliver a unique way to aggregate, manage and collect the actual product from multiple vendors.

Outline the KPIs, which generally measure the supplier performance

This measurement or indicator is there to check which particular area of the vendor management cycle requires improvement. The smooth relationship between the suppliers and the organization is maintained. One can keep a check and try to find ways to improve the rate of supplier performance.

Keep the communication channels open with the suppliers

The actual relationships are also forged from strong determination and will. You need to be open with your suppliers about the type of relationship which you want to build with them so that they can maintain that properly

Identify the actual risks & address them

This is essential to evaluate the supplier risks for the project. Assess the weak areas and then determine the mitigation measures that can be deployed. Unresolved risks can disrupt the overall performance. This can affect the profit, value, and entire supply chain. So, this is essential to mitigate the actual Risk, analyze, and assess.

You have to keep in mind that the best procurement teams generally pay attention to the important details of the suppliers. Here we are giving five reasons which you should not overlook. You have to check those things before investing in supplier management Solutions.

Five reasons for investing in the supplier management Solution. The first question which should appear in your mind is, “why do you need the supplier management Solution?”

MITIGATE THE OPERATIONAL EXPENDITURE

Sometimes procurement can reach astronomical heights. And the runaway operational expenditures can balloon. But the good effort and technology can help mitigate the mounting expenditure.

IMPROVE THE MANAGEMENT OF THE BANDWIDTH

Time and energy are finite resources. Therefore, the unit focuses its efforts on the exact core functions of its business by eliminating vendor management methods. Automating teams and sourcing can also help them to fix their goal.

IMPROVE THE FINANCIAL ACCOUNTABILITY & EFFICIENCY

The exact usage of the consolidated supplier management platform allows you to bill strategically without the help of any multiple third parties. Also, this can improve financial clarity and accountability at the time of increasing purchasing power.

ENJOY CENTRALIZED COMMUNICATION

Supplier management solutions are very beneficial for your business with large procurement requirements regularly. The solution can help identify, evaluate, communicate, and regularly analyze, giving better ROI.

Did you know that people spend 15.5 hours per week sending and checking emails? If you calculate, you can see that you must pay a lot of time per year! When you can understand the advantages of using this supplier management solution, then this becomes easier to notice the accurate ways to improve the procurement efforts across the entire board.

Who requires a supplier management solution?

Any organization involved in a large number of procurements will need a supplier management solution. When the time comes to establish the actual reason why the business needs this supplier management, then you must consider the below-mentioned aspects –

For evaluating the suppliers are performing as per the organizational needs

To determine the specific areas of improvement and create a solid bonding with the suppliers.

The above factors can highlight why you have to take the help of supplier management. To assure this, we have to derive this actual value from the suppliers for the specific requirements. To get the full service from the supplier, it is essential to measure and track their actual performance. The organization can develop a transparent relationship with the supplier with regular communication and feedback. And also assists in finding the exact areas of the basic improvements with the easy solution.

SOME KEY FACTORS DRIVING THE SUPPLIER MANAGEMENT SOLUTION:

Enhancing the operational scale, which results in improving conditions for the local as well as the global suppliers

The increasing complexity of the supply chains also results in the rising depth of the supplier base of an organization.

Risk in the supply chain can make the specific organization more vulnerable to performance failure if the suppliers are not managed & evaluated appropriately.

Leveraging the supplier relationship is essential, and supplier management in proper times of external or organizational distress ensures that business performance does not fluctuate.

The increasing competition implies that the organizations must recognize & improve the fundamental aspects of their business process, which can deliver them the competitive advantage.

Benefits of the supplier Management

Now we can easily understand the actual need of this supplier management, let’s check how this can be beneficial to the organizations:

Managing the growing supplier base effectively

This is the consequence of several factors, including increasingly globalized business methods. This, in turn, provides actual access to global suppliers. It also enhances the specific scale of the operations done by an organization.

Improving the supply transparency of the organization

This enables the organizations to have genuine transparency into the accurate number and type of engaged suppliers. When you have the supplier management system, it will allow you to streamline the important information. And also allow getting the data regarding the lifestyle of the supplier to get a better understanding of the suppliers. This also enables the organizations to increase the real transparency about the performance of the suppliers. And also help to improve their future performance.

Tracking the compliance to similar parameters

Each supplier has to fulfill the exact set parameters to assure that they are fulfilling the needs of that organization.

Evaluating the performance of the supplier

Possibly this is the most crucial benefit of having supplier management. The supplier’s performance allows you to evaluate the supplier compliance, but it also provides you in-depth insights into their actual performance. Usually, supplier management includes the exact creation of multiple KPIs for measuring the actual performance of the supplier & utilizing these, you can also access the exact value made by those suppliers.

Building development functions for supporting the suppliers

Once you have evaluated the suppliers & recognized the specific areas for maximum improvement, supplier management can also help you design the development programs to support the suppliers, especially the one that caters to the long-term or essential needs & assist improve their actual performance.

Leveraging the supplier Relationship management

This could not seem so, but the actual relationships you made with your basic supplies can benefit the organization.

When you generally collaborate with the suppliers & involve them in a unique process to decide how to get the preferred requirements, you make long-lasting and trust-based positive relations which can also be leveraged in the future.

Collaborating with the suppliers turns them more attractive for a better understanding of the business needs & also considers the techniques on the exact terms of the organization.

Mitigating and Assessing supplies Risk

Mitigating and identifying the supplier risk is another unequivocally significant benefit of having efficient supplier management for your organization. As supply chains & resultant supplier relations also become complete, the actual probability of the detrimental supplier management assists in identifying & assessing the substantial impact of the real supplier risk & devising the appropriate risk mitigation measures.

5 STEP SUPPLIER MANAGEMENT METHOD:

IDENTIFYING THE EXACT SET OF THE BUSINESS OBJECTIVES AND GOALS:

This will also highlight what each department needs from 3rd parties to map the suppliers to each requirement without duplicating the efforts & the resources. These particular objects will help evaluate the supplier’s performance vis-a-vis the exact objects communicated to them.

IDENTIFYING THE RELEVANT SELECTION CRITERIA FOR SELECTING THE SUPPLIERS:

After knowing the objectives & the needs that necessitate the supplier engagement, you require to define the choosing criteria for selecting the suppliers which will deliver the maximum value for the actual condition.

Also, the organizations engage in RFPs, RFQs for choosing the relevant suppliers, especially while the needs are significant.

SELECTING AND EVALUATING THE SUPPLIERS:

The next step is to evaluate every relevant supplier based on the essential selection criteria you have already identified. The majority of the organizations also assess the exact suppliers based on the precise pricing they have already quoted.

However, this is equally essential to the factor in another criterion you have recognized. Assess the actual proposals & the actual quotations provided by the potential suppliers and ensure that you are also deriving the actual scope of cost-saving. Analyze the conditions and terms to notice how well the suppliers plan to meet the organizational needs.

At that same time, be sure you have done a holistic, thorough analysis of the supplier’s weaknesses and strengths and study how opportunities and threats of the external environment can impact your engagement with your suppliers.

CONTRACTING AND NEGOTIATING WITH THE CHOSEN SUPPLIERS:

You need to execute the accurate contracting method to get the suppliers on board. Ensure that you can involve the pertinent stakeholder of specific contracting processes to gain valuable insights. And this particular contract can ensure the full delivery of the actual value.

In these specific business cases, the finance/procurement team also executes the specific contracting method with the senior executives of the specific business units.

EVALUATING THE PERFORMANCE OF THE SUPPLIER:

Supplier management does not bend you to select the actual suppliers. After the essential selection, you must evaluate their actual performance to check how well they have fulfilled the requirements. To ensure the practical evaluation of KPIs to measure this accurate performance.

This also permits you to prevent the insight to improve the overall performance of the suppliers. This also tells you how effective the supplier management process will be and how this can optimize this in the future.

IMPLEMENT THE SIM (SUPPLIER INFORMATION MANAGEMENT):

Having the supplier information system will also help you to:

Streamline the supplier data from disparate sources to achieve meaningful insights.

Collaborate with the suppliers to improve supplier relationship management.

Monitor the capability of the suppliers to meet the current & future demands

Evaluate the supplier risks & then identify the mitigating measures.

IN THE NUTSHELL

Practical supplier management will give proper value to your business needs. Also, this enables you to get the actual cost savings through improved services and good quality. Generally, this determines the actual bottom line of your business. Therefore, this is the actual time to put your Suppliers in a solid front seat to improve your organization’s performance.

Supplier management is the process that needs constant evaluation & good monitoring to improve the quality. In many cases, a strong relationship between the vendor and the purchases can give a better result for good collaborations.

To enjoy the appropriate rewards of an efficient vendor management relationship, you have to invest sufficient energy and time. And this is not that.

Highbar Technocrat is one of the leading end-to-end IT solution provider for the Infrastructure, EC&O, Real Estate, and Power sectors. They are SAP Gold partner and offer a wide bouquet of digitally integrated solutions ranging from implementing SAP-based ERP solutions like S/4HANA, RISE, Cloud-based solutions to 5D BIM for mega infra-projects, RPA & IoT solutions, and many more. With an in-depth understanding and core competence of the construction & infrastructure industry, Highbar has demonstrated expertise in the Private, Public, and Government sectors covering roads, ports, smart cities, airports, railways, irrigation, power, water supply, as well as urban and industrial infrastructure like telecom, manufacturing, and mining sectors. Highbar is the perfect blend of domain knowledge in the infrastructure business with a team that is well equipped to understand and relate to the requirements of the sector.

To know more write us at enquiry@highbartech.com or call +91 8976711399