A few years back, an asset management spreadsheet was utilized for asset tracking. But organizations realized it was not effective on a big scale. However, assets are costly and they need to be monitored so that their investment on assets is safe. So, asset tracking software emerged as an alternative for asset tracking.
The spreadsheet can be utilized if and only if:
- Organization is small
- Only a few people accessing the spreadsheet
- No other organization branches
Because, if the spreadsheet is used in a big organization that has several branches and a lot of people access it then it will lose its effectiveness. Several employees will update information as per their knowledge and other employees will also do the same.
So, what will happen? All data will be confusing, no accurate information will be there and there will be no creditability.
What Are the Disadvantages of Using a Spreadsheet for Asset Management?
Here are the few disadvantages of using a spreadsheet for asset management that we have discussed below:
1. Human Error
According to the research mentioned in Rahman Ravelli, “Fraud and human error are costing businesses and organizations in the UK an estimated £98.6 billion a year”.
One can enter wrong information in a spreadsheet intentionally or unintentionally, there was no way to find who made the changes! Due to this human error, an asset is prone to theft.
2. Limited Access
A spreadsheet is only accessed via the laptop and computer. Hence, employees can only access the spreadsheet from their workstations. Updating spreadsheets can be time-consuming as well!
For example, you are working on a work order, then you complete the job and after completing the job you will return to your workstation to update the status of a work order.
3. Lack of Security
Asset management spreadsheets are not secured they can be easily altered without giving any indication. The spreadsheet does not indicate who has made changes or when. Therefore, the spreadsheet lacks insecurity and it is not a reliable source.
4. Inadequate Information
Since all data is prone to error, not reliable and no credibility is there so information is not efficient. Hence, the decision must not be made based on the spreadsheet.
What Are the Advantages of Asset Tracking Software?
Here are the few advantages of asset tracking software that we have discussed below:
Asset tracking software keeps track of assets and provides information without compromising accuracy. As it utilizes asset tags and labels for asset tracking. With the asset tracking technologies such as Barcode, QR Code, RFID, asset tracking software becomes more effective.
2. Real-Time Information
With this software, employees are not bounded to their seats to update information. For example, during work orders an employee can update information at the same time while performing maintenance, the technician will not have to go to their work station to update information.
This software also comes with cloud technology which means you can access and update information from anywhere across the world.
3. Data & Asset Security
With this software, a user can be restricted from accessing data as per their authority. Moreover, if any changes were made the software keep history so it can be found which user made changes at what time.
Assets are also secured as each asset is tagged with asset tracking technology. Asset theft or asset misplacement will not occur.
4. Detailed Reports
Reports are very important especially when an organization is planning to enhance business. For that purpose, several types of reports are required. You can get all the reports within minutes with asset tracking software assistance. It also allows you to get customized reports as per your requirement.
5. Return on Investment
This software plays an important role in increasing the return on investment (ROI). It increases the productivity of employees and organizations as well.
You may ask, how?
When maintenance is given on time to assets it decreases the chances of sudden asset breakdown. As a result, productivity increases.
Another example is employees don't waste time to find assets because this software provides the exact location. Hence, this software increases the return on investment of the organization.
So, these were the few benefits of asset tracking software.
Asset Management Spreadsheet Vs Asset Tracking Software
When technology was not there, the spreadsheet was used for asset management. But as technology evolved & there were other alternatives and effective methods for asset management.
However, companies did not migrate from the spreadsheet but those companies who utilized automated software understood the potential of the software. That is why we have created a comparison between asset management spreadsheets and asset tracking software.
If we speak about asset management spreadsheets were considered as the best option for maintaining data. But now organizations so many factors to consider and lots of things to take care of. The spreadsheet can only work on a small scale but a big scale asset management software is best.
This software provides several other benefits as well such as regulatory compliance, save maintenance expenses, optimized assets, eliminating ghost assets, extend asset life, maintenance scheduling, depreciation management, etc. This software can also streamline your daily operations.
You can use the spreadsheet for other purposes but if effective & proper asset management is your objective then we recommend you use asset tracking software.
Frequently Asked Question (FAQs)
1. What is asset tracking software?
Asset tracking software provides a way for effective asset management. In this procedure, physical assets are tracked with the help of asset tracking methods such as Barcode, QR code (Quick Response Code), RFID (Radio-frequency identification), NFC (Near field communication), GPS (Global Positioning System), BLE (Bluetooth low energy), etc.
2. How spreadsheet can be used in organizations?
The spreadsheet can be useful for several other things including asset management but on a small scale. The spreadsheet can be used in fast calculations, you can also make formulas with the help of IF, SUM & LOOKUP functions. It is effective for solving problems and can also save a lot of time.
3. Which asset tracking software is best?
There is no direct answer to this question because every organization has a different requirement. Therefore, it's important to understand what is your requirement. Then you can take a demo from Asset Infinity or any other service providers. At last, you can choose which software is the best fit for your requirement.