An organization is equipped with several assets. These assets can be categorized into tangible and intangible assets but they need to be managed.
However, managing these assets can be a hectic task. Specifically, when your organization has a lot of assets.
Hence, we are putting together 7 best tips for increasing productivity via asset management software effectively. So, without delaying any further let us begin!
Also Read: How Can Asset Tracking Software Boost Your Business Efficiency?
7 Tips that will increase productivity with asset management
#Tip 1: Abolish Spreadsheet usage
The first tip & most important asset management tip is to remove the spreadsheet utilization. Old & traditional methods for asset tracking can work in small size companies that have only a few assets. However, for medium & big-size companies it will be not useful.
Why you may ask?
Because spreadsheet usage is done manually, so you will have more chances of inaccuracy which will result in asset loss & misplacement.
For instance, the spreadsheet is accessed by many employees and when many employees put information about the same asset, chances are there for the data to be jumbled up resulting in inefficient asset tracking.
Here is another example. If a task supervisor is simply utilizing a spreadsheet, saved locally to their work PC to track devices, equipment, assets. Then other team individuals won't be able to access the information they required.
Therefore, the spreadsheet method is not a foolproof method for asset tracking, on the contrary, it is prone to errors. As a result, overall productivity decreases.
Hence this practice is not effective especially when there are lots of assets that are needed to be tracked.
#Tip 2: Implement Asset Management Software
Rather than using manual tracking, implement asset tracking & management software in your organization. It will not only be accurate but it will reduce the chances of asset loss & misplacement.
Other than these benefits it will also help you in making a better business decision. It can also assist you in achieving future goals and objectives.
Most importantly it can significantly decrease operating and maintenance expenses and improve compliance.
This is the most crucial tip in order to grow the business. As it can change the whole way of operations and activity in your organization.
#Tip 3: Understand Asset Life Cycle
Understanding the life cycle of an Asset is very important for the business. Get an estimate of how long you can utilize assets efficiently.
It is useful from the stage procuring until it disposed of. For e.g. a building has lots of valuable items that require maintenance such as elevator, furniture, etc.
The facility manager manages the assets. Sometimes they need to be replaced and that is the responsibility of the asset manager. But if maintenance & repairing is done regularly, it can increase the life & efficiency of an asset.
Also Read: 7 Best Asset Management Practices for Your Business
#Tip 4: Utilize Re-order Level
Inventory is considered one of the most important assets. A shortage of inventory definitely affects business, especially in peak season.
So, in business, it is crucial to maintain the right level of stock at the required place. However, inventory management is not only important in terms of maintaining the right stock but it also saves you overstock.
Knowing when & how to reorder, which warehouse location needs reorder, these are the most basic things but most of them fail in implementing it. Asset management software has a “set re-order level” feature it means it will notify the responsible person whenever the inventory will below.
#Tip 5: Track Assets Regularly & Systematically
When you do not perform asset tracking regularly then it can affect the company bottom's line. Your company could be charged for unnecessary assets.
It may include expenses for insurance, taxes or maintenance. You can also end up paying taxes for assets that are already depreciated.
Another reason why asset tracking is important is that when you have committed to your client that you will deliver before a specific date but unable to deliver because of assets are not available to complete the work order.
It impacts your company's reputation. Hence, it is very important to perform asset tracking at regular intervals & keeping the accurate records of an asset.
#Tip 6: When an asset needs to be disposed or retired
Unproductive asset detection can save a lot of organizations' money. Everybody knows that each asset has a limited life. It can be of 2 years or 20 years that vary from asset to asset & it depends on the usage of that asset.
Some of the question connected to asset life are:
For example, How much the asset is used? or, How often asset needs maintenance? or, How frequently asset is utilized? or even, How much maintenance costs each time?
These types of specifics are required in order to know if the asset should be retired, disposed or donated.
#Tip 7: Eliminate Ghost Asset & Zombie Asset
Ghost assets are either missing/stolen assets or those assets which are mentioned in your books but physically they are not available. Zombie Assets are physically there but not mentioned in the books.
They occurred because of non-efficient asset management practice & both ghost asset & zombie asset affects taxation.
Why ghost asset is a problem?
Because you are paying taxes for an asset which you are not using.
If any work order arrives at you, although you have an alternate asset to fulfill the work assignment, you realize that you are short of that particular asset which was most efficient for the task.
Why zombie asset is a problem?
If you perform a physical audit on a regular basis then you will be able to identify ghost assets & zombie assets.
You have to remove all your ghost asset & zombie assets but how?
If you perform a physical asset audit on a regular basis then you will be able to identify ghost assets & zombie assets.
Also Read: How Important Is It to Track Business Assets in Different Industries?
We hope these asset management tips will help you in managing your organization's assets and their tracking.
Asset tracking and management are important as it will help a company in monitoring and managing its assets using a systemized approach.
The benefits of asset tracking and management include improvements towards the productivity and efficiency of assets which will ultimately place a business in a better position to increase their return on investment.
Overall, these asset management tips assist in asset optimization and help in making an appropriate decision about assets.