Asset management does not always mean repairing assets when they are broken. It is important that you have assets to utilize when it is required. Hence there are several asset management challenges that occur in the entire process. An organization faces lots of asset management challenges while using assets. What are those challenges? That we will discuss in this blog. So, without wasting any time let us begin! But first, let us know what asset management software is!
What Is Asset Management Software?
Asset management software provides an automated approach to track & manage assets. In this process, all asset information is stored and used to increase asset life so that ROI can be maximized.
It helps organizations in the management of assets in all stages such as procurement, maintenance, utilization & disposal of software. It sends alerts & notifications to all.
As we know manual process is error-prone, which is why it is better to utilize asset management software. When the process is automated it is helpful in scheduling maintenance & monitoring asset condition as well.
It has powerful features that will simplify asset management forever.
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4 Asset Management Challenges Faced by a Small Organizations.
Below we have discussed asset management challenges:
1. Asset Location
One should always know what the current location of the asset is! Most importantly, assets must be bought in no time as employees' time is wasted looking & finding assets. So that when it is required you can take it to the required location & no work delay occurs.
However, we know that it is not a simple job as there are lots of assets and equipment required so one cannot keep track of assets at its fingertips.
With asset management software, you can always keep track of assets in real-time. It is helpful especially to the construction industry as their work location keeps changing from time to time. So, with this software, you can plan asset utilization more efficiently.
Furthermore, with this software, you are always aware of asset location in real-time. It means you can find assets anytime and it is helpful in asset theft and misplacement scenarios.
Downtime has always been a big challenge for asset management because it not only impacts productivity but only impacts the speed of operation which results in delayed production.
When the asset is not working then it does not add value to the organization which is no good. Moreover, organizations have to spend money on maintenance, and revenue is not generated as well that is why minimizing downtime is essential for every organization.
In order to reduce this asset management challenge organization, downtime must be planned for each asset to fulfill that purpose organizations must invest in an automated asset management software that will help to schedule maintenance of each asset and you will notice your average downtime will be decreased.
3. Asset data
Collecting all the asset information can be hectic. In fact, it is one of the major asset management challenges since most of the work is done manually so keeping all things organized and putting all the information in one place, and finding accurate information on the behalf can be difficult.
With asset management software, you can keep all documents within one place and find any document within seconds. Furthermore, you can ensure data accuracy.
If you have accurate information, you can get valuable intel that will help you in saving expenses and enhancing your asset life. Asset information is also helpful in decision-making and setting future goals.
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4. Asset information
Most of the time managers do not know where assets are, who is using them, where they are located, and whether they are frequently used or not!
These types of challenges are common when you are working manually. But this is a huge problem as several times employees use assets for their personal work.
Sometimes assets are not used at all. Sometimes assets are not available as someone else is using them. So, these kinds of problems are usual.
Asset management software has a feature that resolves this issue which is check-in & check-out feature. Through this feature, managers can know who is using the asset when it will be returned and how frequently the asset is utilized.
With this feature, assets can be reserved if work is needed, therefore planning can be done in advance and operations can be planned according to the availability of assets.
Since small organizations do not have much budget that is why they manage their assets manually. However, when an organization grows these are the most common asset management challenges that occur.
Moreover, you can easily avoid these issues with asset management software. There is no doubt that this software provides several benefits to the organization.
Investing in this software can give your business an extra edge and it will help increase your return on investment (ROI).
Frequently Asked Questions (FAQs)
Q.1 - What Is Asset Management?
For effective tracking, asset management provides a strategic approach. In this process asset tracking monitoring, and maintenance is performed so that asset is utilized, and downtime is decreased. The purpose of asset management is to enhance productivity and increase the efficiency of the machine. According to Markets & Markets, “The Asset Management System Market is projected to grow from USD 16.8 billion in 2020 to USD 27.4 billion by 2025; it is expected to grow at a CAGR of 10.3% from 2020 to 2025.”
Q.2 - What Are the Benefits of Asset Management?
The benefits of asset management are given below:
1. Avoiding sudden asset breakdown.
2. Helpful in optimizing asset performance.
3. Saving assets from theft & misplacement.
4. Enhancing asset life.
5. Decreased maintenance expenses.
Q.3 - How Does Asset Management Software Help in Avoiding Asset Theft & Misplacement?
Asset management software utilizes asset tracking technologies such as Barcode, QR (Quick Response) Code, RFID (Radio Frequency Identification), BLE (Bluetooth Low Energy), GPS (Global Positioning System), NFC (Near Field Communication), IoT (Internet of Things). These technologies provide real-time location of each asset which is helpful in avoiding theft & misplacement.