A huge or medium-sized manufacturing company has assets in abundance. With so many assets, it is hard to keep records of each and every asset via a pen-paper approach.
The data you will collect with this approach will not only inaccurate but also it will lead to the wrong business decision. This is where asset management software comes into play!
Asset Management software can help manufacturing organizations in several ways. It can increase asset life & productivity, track upkeep expenses, prevent and foresee asset failures, decrease expensive downtime, ensure compliance, and lower the total expense of upkeep.
Advantages of asset management software for manufacturing organizations
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Imagine a scenario, where you need a specific tool, you looked into your warehouse, but you don't find it, therefore, this is a case of bad management.
In this case, you lost your asset, or somebody took it, but it is declared on documents. Unfortunately, these types of scenarios will increase your unnecessary expenses.
The asset which is not physically there but declared in the document is called ghost asset.
How would you identify a ghost asset? What is the solution for asset loss or theft? Asset management software!
It gives you real-time information & the exact location of an asset, who is using that asset & you can also manage your asset from other locations. Also, it decreases the probability of asset loss or theft.
Better Asset Utilization
When you have asset information on fingertips, you can better utilize your assets.
You will get an update about the maintenance of an asset as per the specified maintenance cycle! You can know when a particular asset is purchased and when it should be discarded. When you have all the data on your system, then you can efficiently & easily manage your asset. Therefore, you will utilize the asset completely.
Saving Maintenance Expenses
The word maintenance does not always mean to repair. What maintenance really means is to follow up with the regular or methodological processes to keep the equipment up to date and in working condition. It does not only mean repairing a piece of equipment when it is broken.
If you do not track & maintain your equipment regularly. It will not work efficiently, and it can create a hindrance in daily operation. The upkeep work should be done professionally via asset tracking management software. It can detect potential issues in equipment.
Sometimes you have to visit a working location to inspect the equipment in case if the machine is working continuously for several hours.
Because the software will only alert you when a problem occurs. Therefore, when you visit the facility, you have already detected a problem and notified the responsible person to resolve it.
As a result, the issue with that equipment will be resolved, which will help run the facility efficiently and no unnecessary expenses would be added to the total maintenance cost.
The equipment should be lined and labeled, its wearing surfaces should be examined and replaced, oil schedules should be done at regular intervals. Hence, the equipment with good working conditions requires regular inspection and adjustment in order to produce good quality products for a long time.
Increasing Asset Life
Fixed asset management is the management of assets from the stage of its procurement to end-stage disposal. It assists in increasing the asset life in all stages. It improves the quality of the asset and enhances its efficiency.
In the process, it keeps the detail of the records of each asset in order to maintain it. Moreover, it is also beneficial in providing more control over your assets.
Through fixed asset management you can figure out which asset is not providing value to your organization. Or if any asset is being a liability on your organization.
Inventory is one of the most important parts of manufacturing a product. A manufacturing company may have several factories spread across multiple locations.
When inventory is not available in stock then it results in decreased productivity, business loss & delivery is not done on time.
If a machine fails and spare parts are not available in stock, then it can affect your organization's productivity. The lacking part is the centralization of information. It often leads to passing wrong information & mismanagement of work.
The asset tracking system centralizes your business; therefore, no wrong information is passed and also lets you know how much inventory is left in the stock.
Increased Return on Investment
Asset management software attributes to assist in tracking, managing, and monitoring the assets with a systematic approach. It also helps a company by improving efficiency and productivity.
As a result, the return on investment (ROI) increases. Not just that, it also enhances the day-to-day operations.
Ensure Regulatory Compliance
When asset tracking & management is done correctly and efficiently then you can find accurate reports. The reports are used by top management & it also plays a vital role in making a strategical decision.
A strong compliance function can set apart your company from your competitors. With the assistance of the software, you can get reports of an asset within minutes.
It includes asset history reports, asset maintenance reports, asset records, etc.
Track your Asset Depreciation
Without tracking asset depreciation, you would be paying more taxes. So, you must do proper Asset depreciation calculation. Don't worry, you don't have to do it by yourself, you will be able to calculate with the assistance of the software.
Similarly, you can retrieve data on a particular asset for information such as how fast asset is depreciating & when you need to dispose or decommission the asset.
Audits & Physical Verifications
Auditing is very crucial for identifying and verifying what assets your organization owns. How many assets are on lease and where they're located? The process of Audit can provide answers to all these questions.
Auditing plays an important role while calculating taxation. According to the depreciation, it can provide you with tax relaxation. You can perform a quick audit with the correct software. As it has the ability to capture geo-location of the asset. The organization can also track the asset's location and status. It streamlines compliance & generates automatic reporting of variances.
Several manufacturing organizations have not implemented asset management software in their organization. But they are lacking a huge opportunity to grow their business.
As we told above there are a lot of asset management software benefits once implemented in their organization. These organizations have information but at different-different locations and cannot be retrieved easily.
Adopting asset management software can solve these issues as it works as a central database through which asset data of any location can be availed easily. It helps an organization by improving efficiency and productivity. As a result, the return on investment (ROI) increases. Not just that, it also enhances the day to day operations.
The commencement of the asset management system is very easy and it will definitely help your organization in many ways. To help get started, one shall consider Asset Infinity to track assets, inventory tracking, maintenance management, etc. You can start a 14 days free trial.