For any big organization's asset management structure, the following points are very critical:
- Fixed Asset Register
- Unique Identification of the Asset
- Maintenance Schedule to catalogue usage and frequency of maintenance
- Ensure Compliance Management and meet the global benchmarks for better productivity
- Ensure Certification Management
- Lastly, ensure continued profitability and being socially responsible
All the above-mentioned points ensure maximum returns on assets and help in the effective management of an organization.
Asset Management Structure of Big Organizations
In order to further understand the asset management structure of big organizations, there is a need to identify the process of maximization of returns from the asset base. It also shows the extent of distribution for assets in different asset categories.
All profit-making firms acquire assets at a measurable cost and use them for generating revenue. In this way, they justify their place in the balance sheet by bringing in returns and are hence owned or controlled by the organization.
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All theories point out that the primary objective of a profit-making company is increasing the owner's wealth. So, assets are primarily defined as those tools which the company uses to work with and earn profits in order to achieve business objectives.
Typically, in all big organizations, a comparison is always drawn between the profit of the organization with the asset base. This is termed as Return on Assets (ROA).
This can be effectively managed with the help of an asset management system which will assist in maintenance, repairs, and operation of assets for a long time.
Few points to achieve this objective are mentioned below:
1. Focusing on client experience and brand management with an increase in distribution
It becomes really important for organizations to focus on maintaining the sanctity of the brand with an increase in the customer base. In order to ensure that there are no aberrations in the brand message, certain checks and balances should be put into place.
And every process needs to follow these predefined rules, to help in better efficiency and deliver the best results.
This can only be achieved with satisfactory customer service. Customer service is directly dependent on the operational status of the assets used by the employees.
Well-maintained and healthy assets can guarantee faster usability reducing the delivery time and empowering the brand. This will help in enhancing the reach of the brand and strengthening brand loyalty.
2. Ensuring compliance management for curated processes
All profitable organizations follow the compliance management system to ensure delivery benchmarks and attain the shortest delivery time.
Many asset managers are implementing asset management systems to incorporate changes in organizational structure, functional alignment and help in better management of process, systems, and data.
3. Usage of rented/leased assets to avoid big investments
Incorporating outsourcing vendors into the system, many asset managers are now considering functions which can be outsourced, an optimal number of providers and sharing the limited information with them in the system. This kind of integration can be helpful in middle management assistance for functions like IT, Administration, Performance Measurement & Attribution.
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This also brings down the capital investment in the system significantly and decreases the liability. Any maintenance required for these leased assets is also procured by the outsourcing vendor, to simplify the processes.
4. Decentralize Asset Management for Multiple Assets and lower the cost of operations
There is an immediate need to deploy a system, wherein asset management can be done by location-based multiple asset managers and enable effective management of assets.
Any information related to an asset can get misplaced while it is transmitted from one location to another, for asset management purposes. This can bring down the burden on anyone department/individual to maintain the fixed asset register and enhance the traceability of assets.
5. Ensure check-in and check-out of assets
Typically, the movement of assets is hardly traced in big organizations, which can lead to the duplicity of assets in a multi-location organization.
For example, in a multi-location hospital, tracing of expensive & critical equipment can help in avoiding any delay in the services rendered to the patients.
Effective movement tracing of such equipment can only be ascertained with an asset management software that allows check-in check-out of assets alongside their movement.
Therefore, the rate of secured and self-maintained data management service providers is increasing steeply which helps in streamlining of the existing processes.
Replacement of legacy custom applications with flexible asset management software has led to the rationalization in the number of applications used by the employees. For instance, in the procurement department, almost three to four processes are combined into a comprehensive order management system.
Thus, all the organizations must be driven by the system and not dependent on one individual for the execution of processes. This can generate a definitive competitive edge over other players and smoothen the functions.
Asset Infinity is an asset tracking management system, that is readily used by various organizations across the globe to simplify its complex processes. All the requirements of the modern business environment are addressed in an efficient manner, thereby expanding the bandwidth of the employees to focus on critical issues.
Also Read: How Does Asset Management Benefit Facilities Across an Organization?
Frequently Asked Questions (FAQs)
1. What Is an Asset Register?
The asset register contains a complete list of all assets and pieces of equipment belonging to the organization. It is helpful in collecting valuable information of each asset in several aspects such as asset location, asset maintenance, asset expenses, and so on. It provides several benefits as well such as avoiding asset theft and misplacement, calculating depreciation, and helping in maintaining compliance. It is also helpful in estimating maintenance expenses. Asset register assists in the quick asset verification process.
2. What Is the Asset Check-In & Check-Out Process?
The asset check-in check-out process is the process that helps in keeping track of assets. It comes in handy, especially for those organizations which provide or deal in asset rentals. With check-in check out you can keep track of asset's condition and ensure that assets get maintenance on time. Furthermore, when the asset is returned you can match the condition of the asset that you have sent in. Check-in & check-out software also sends alerts about when assets need to be brought back from the lessee. It makes the lessee responsible for asset utilization.
3. What Are the Advantages of Asset Management Software?
The advantages of asset management software are given below:
1. Eliminate spreadsheet utilization
2. Accurate asset location
3. Avoiding asset theft
4. Reduced asset failure chances
5. Decreased maintenance expenses
6. Increased asset life
7. Optimized productivity