You might be able to provide a complete asset list manually when you are a small organization. But when you are a medium or enterprise-size organization you will be not able to provide an asset list manually. You will need asset inventory software that will provide asset life anytime.
Inventory management software provides several other benefits that help your business! In this blog, you will know more about asset inventory software and what are the best practices for asset inventory software! So, without wasting any time let us begin!
What Is Asset Inventory Management Software?
An effective asset inventory management software enables you to track and movement of equipment and other items. With this software you can check an item's movement anytime, you can also where it was and how was using it with the help of real-time information.
Real-time information comes in handy while makes strategic decisions. You can also reduce maintenance expenses and labor requirements for asset inventory software.
This software improves asset performance as it monitors items, reviews them, and then assists in suggesting and making changes in each item. As a result, performance improves, and outcome increases.
Also Read: 7 Asset Tracking Software Questions You Must Think Before Investing in It
Most important it keeps assets and inventories safe and secured. Without this software theft and misplacement will lead to loss and disappointment. This software keeps track of every item and lets you know its location all the time.
What Are the Benefits of Asset Inventory Management Software?
The benefits of asset inventory management software are discussed below:
1. Saving Maintenance Expenses
Since this software creates a list of all assets. Plus, this software alerts you in advance for upcoming maintenance so you do not have to keep track of maintenance manually. It saves assets from sudden breakdowns.
When maintenance is up to date their performance is optimized and return on investment increases as well.
Furthermore, if an asset is having issues for a long time, with this software you can know if the issue was the same or not, what was done so that you can try a new solution if the same problem is coming up again.
In simple words, asset inventory management software helps in maintaining assets efficiently and saves a lot of maintenance expenses.
2. Saving Inventory from Theft
Theft is a big issue in big-size organizations. According to Forbes, “shrink, or loss of inventory related to theft, shoplifting, error, or fraud, is reducing the bottom line by $46.8 billion across the industry.”
Inventory is costly to all businesses and they are important in making the final product. If an inventory is unavailable, it hinders the production process which means a delay in delivery.
Asset misplacement can be lethal for business as equipment are important for running the daily business efficiently. Furthermore, it delays daily operation and productivity of the organization and employee suffers.
This software keeps track of every inventory and asset. For this purpose, asset tracking technology is used such as barcode, QR Code (Quick Response Code), RFID (Radio-frequency identification) can be used.
They help provide accurate location of each asset so theft and misplacement can be avoided.
3. Improved Productivity
With the asset inventory software, you can enhance the performance of an asset and keep track of inventory.
With the software, you can get data that you can utilize to improve the productivity of the machine and items. You can keep records of inventory that was not used so that unnecessary expenses are not done.
With this software, you can avoid overstocking issues and understocking issues that will help in improving productivity. With the data, you can know which asset is taking more maintenance than required and asset life so that you can decide on that asset.
Also Read: 5 Signs Tell That Your Organization Needs Asset Management Software
4. Forecast Demand & Identify Trends
When you have complete asset history, you know when the asset was purchased when it needs to be disposed of. These types of information come in handy in making accurate assessments of assets you can also calculate the budget accordingly.
Forecasting helps in identifying trends in business that can give your organization an extra edge.
For instance, an asset that starts giving low performance after 1 and a half or two months therefore you can schedule maintenance after 2 months so that asset performance is not compromised.
What Are the Best Practices of Asset Inventory Management Software?
The best practices of asset inventory management software are as follow:
1. Keep Track of Trending Technologies
Traditional assets are easier to track but as the technology is developing. New technologies are emerging that are more effective and provide more and deep information such as the Internet of Things (IoT).
It is important to keep track of trending technologies as they are more efficient, effective, and helpful to your business. It is essential that you understand how new technology can be used with asset inventory software.
When you adopt new technology, it can help your business in staying ahead of business competitors.
2. Performing Audit Regularly
Regular audits are essential in business especially when an organization is equipped with a lot of assets and inventories. Audits keep your organization complied with rules and regulations as per the industry.
Audits eliminate the chances of ghost assets as they are dangerous for business. Ghost assets are those assets that are physically not available but are mentioned in the accounts. So, you end up paying taxes for those assets which you are not using.
Furthermore, if the auditor finds out about existing ghost assets, then also the organization will be penalized. With an audit, you can identify ghost assets and eliminate them in the right way.
3. Use Automated Software as Much as Possible
An automated software should be utilized as much as possible as it reduces the chances of human error and provides more accuracy.
Furthermore, it increases the speed of the process. All the records must be kept in automated software and manual bookkeeping records shall be avoided.
As they are prone to error and if you write data manually chances are it will be wrong and the whole data will be compromised that will impact the negative way.
4. Take Customer Feedback Regularly
If you want to grow your organization then taking feedback is important. Feedback can be taken from employees and customers.
Customers can tell you what exactly they need and employees can tell what new feature can be added to the software so that improvement can be made.
These are a few of the asset inventory software benefits and practices that you should utilize in order to grow your business. However, when you want to grow your business, you need effective asset management software that can help you in fulfilling your objective.
Also Read: Major Difference Between Perpetual Inventory and Physical Inventory
Frequently Asked Questions (FAQs)
1. What is the difference between asset and inventory?
An asset is used in daily operations whereas inventory is sold or consumed by the organization. Another difference, assets are used for the long term at least more than a year whereas inventory is used for a short-term period.
2. How do asset tags work?
Asset tag has a unique identification number that number is stored in the software whenever the label is scanned it automatically fetches data. The label is stickered to the asset and helpful in providing accurate information.
3. Which industries can utilize asset inventory software?
Those organizations that are asset intensive or inventory intensive such as hospital, oil & gas, retail, manufacturing, automotive, and so on. These industries can utilize asset inventory management software.