Case Study
Construction best practices are in the DNA of Xpedeon and we have realized tremendous benefits by implementing Xpedeon processes to manage our projects. We have successfully rolled out ‘Cost Value Reconciliation’ (CVR) process and are now in the process of rolling out activity-based costing. Our capacity to monitor project’s progress and cost has improved significantly because of Xpedeon.
Location
Oman
Business
General Contractor
Amjaad Engineering & Contracting LLC, headquartered in Muscat, contributes to the development of Oman with its modern architecture and premium quality construction. Established in 2008, Amjaad is at the forefront of the Oman construction industry and has undertaken many state-of the-art, small to large scale projects such as Movenpick and InterCity Hotels, Shopping-malls, Water Theme Park, Chain of Meethaq Islamic Banks, Khuweymah Shrimp Farm, Sports Complex, Commercial and Housing projects, Villas, etc. With a current turnover of 8 million+ OMR 9(20 Million+ USD), Amjaad is one of the fastest growing SMB Contractors in Oman.
The Challenge
Prior to the Xpedeon implementation, Amjaad relied on a basic accounting and procurement solution which was implemented when the business was in its early years. Consistent growth over the years resulted in them outgrowing the legacy solution and were severely constrained by the solution’s ability to cope with increased business scale and demands. Manual processes and disjointed departmental communication and workflows were adversely impacting their ambitious growth plans and resulted in delays, margin erosion and poor controls.
Several key constraints were identified that needed immediate resolution.
- Procurement teams were struggling to get materials delivered to sites within project timelines, resulting in delays and increased costs. Sites would communicate material requirements verbally or via email without precise information, resulting in poor visibility and control which severely affected the buying team’s performance.
- Subcontractors were being managed entirely manually, resulting in project cost escalations on account of variations, material wastages etc. Manually processing Work Orders and Payment Certificates led to a lot of executive time being spent on manual work, inaccuracy and poor visibility of subcontract costs.
- The Financial Accounting department operated in a standalone silo due to which the management had absolutely no visibility of liability, margins, cash flows or costs.
The Solutions
Amjaad considered various solutions, both generic as well as industry-specific ERPs and after careful evaluation, decided to implement Xpedeon, due to its totally integrated structure as well as the ability to view project cost and margins in near real-time. Today they completely rely on Xpedeon to manage their procurement & inventory, accounting, subcontracts, client contract management, HR & payroll, and Plant & Equipment management processes.
They have been able to achieve seamless inter-departmental communication, eliminated all the manual working and spreadsheets being used in the business and are now able to re-focus on growing the business. Effective controls across all of the core processes enables the managements to trust the numbers reflected by the management reports and has brought agility in tactical and strategic decision-making.
The Results
Highly streamlined Material Procurement with automated Requisition to Ordering workflow
In October 2019, Amjad started the implementation of Xpedeon and practices that once seemed ‘impossible’ became effortlessly attainable.
Xpedeon delivered an instant efficiency boost providing seamless collaboration across Amjaad’s buying process. Integrating the site and departmental functions, Xpedeon improved the requisition workflow and purchase order processing by enabling real-time tracking and complete control on purchases, thereby eliminating unexpected expenditure surprises and delay in project delivery.
The electronic requisition creation and approval process made the procurement process truly agile, eliminating unnecessary communication and approval delays and resulted in improved project delivery & issuance of materials
100% improvement in visibility and accuracy of Subcontract Costs and Variations
Amjaad implemented a comprehensive Subcontracting management processes based on Xpedeon best practices. This greatly reduced the time taken in preparing and communicating Work Orders to subcontractors as well as generating accurate Payment Certificates.
Xpedeon ensured that managers could now keep track of every scope, claim, and change with complete transparency and instant access to the precise data. The automated tracking had a massive impact on time saving and costs. Managing approvals for variations became fast and seamless with a unified application.
Live view of Project Costs and Margins
Xpedeon’s integrated financial accounting tool has allowed the team to have complete transparency and visibility into their expenses. Now the key stakeholders can instantly access multiple project's costs and track margins from anywhere and any mobile device.
Xpedeon provided the Amjaad team with a tool for instant observation, accessible from any device, anytime. Gaining complete real-time visibility into the material flow across the supply network minimized excess ordering of materials and stopped them from making unwanted new purchases, directly impacting the increase in margins.
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