There are lots of theft and misplacement occur every day. Assets are essential in order to run their business with efficiency. Asset maintenance is also very necessary. In case an asset does not work properly manufacturing & production work will not be completed. The work order will not be completed on time and the productivity will suffer that is why asset management software is essential for business.
Asset management is important for business. It takes care of several aspects where organizations face issues. According to Statista,
“The global market for fixed asset management software is forecast to grow from 3 billion U.S. dollars in 2019 to 5.2 billion U.S. dollars in 2024. Fixed asset management software is used to streamline maintenance processes, extend the longevity of assets, and improve productivity.”
Below we have mentioned some statistics that will also tell you how asset management software can help!
Statistics 1 - Asset Theft
Asset theft has been an issue for a long time! According to a blog,
“Over the 2004 to 2014 period an estimated $51.2 million of heavy plant, equipment and vehicles were stolen from businesses. And plant theft from construction sites including more portable plants such as compressors and generators costs Australian companies $140 million every year.”
Also Read: Ultimate Guide About Enterprise Asset Performance Management
Solution - An asset management software is mainly used for avoiding theft with the help of asset tags and labels. An asset management software is mainly used for avoiding theft with the help of asset tags and labels. These tags provide asset location all the time so it keeps track of assets all the time and saves from theft and provides security to each asset.
Statistics 2 - Manual Process
According to the data, “80% of employees waste an average of 30 minutes per day retrieving information.”
These types of incidents are common when the work procedure is manual & based on paperwork. When you have lots of paper it's become a time-consuming task. Sometimes it takes longer than average time.
Solution - Asset management software eliminates the manual process and makes it automated. It makes the process more efficient and saves time. With this software in place, you will not have to waste time looking for papers, as this software can find the document within seconds.
Statistics 3 - Inventory Management
According to Retail Wire, “Overstocks and out-of-stocks cost retailers $1.1 trillion globally in lost revenue. Overstocks are responsible for 3.2 percent in lost revenue for the average retailer, and out-of-stocks, 4.1 percent.”
These shocking statistics only show that organizations are not able to calculate how much inventory they should store so that overstocking and out of stocks can be avoided.
Solution - Asset management software lets you set the re-order level and alerts you when inventory goes below that level so you can easily prevent these problems. This software keeps track of inventory.
Statistics 4 - Asset Maintenance
As per the capterra blog in 2017, “Businesses, on average, spend 80% of their time reacting to maintenance issues that arise rather than preventing them.” Reactive maintenance is more expensive than proactive maintenance. The reason behind, in reactive maintenance assets and equipment, are used until they fail.
Also Read: Why Managing a Fixed Asset Register Is Vital & What Are Its Benefits?
Solution - Asset management software emphasizes proactive maintenance specifically preventive maintenance. As it schedules maintenance as per the usage of the asset. Preventive maintenance minimizes the chance of asset failure. It increases the asset life, performance, and makes the asset more reliable.
Statistics 5 - Data Security
Data theft is one of the biggest sensitive topics in businesses. However, as per the Statista survey, the status of data security is collected from 2015 to 2025. “As of 2015, 25 percent of the global data required security but was not protected. That number was projected to increase to 45 percent in 2025.”
Solution - These days the biggest assets of any organization are the data. An organization must protect data from theft, with cloud-based asset management, the organization does not have to worry about data theft or hacking because it is the responsibility of a third party. They provide data security of a high level it means data theft is not a piece of cake.
These providers have lots of data and securing them is their responsibility. They provide seamless security and it includes the broadest data security for the network.
There is no doubt that asset management assists the organization in several ways. It can help in overcoming those issues which industries have been struggling with for a long that is why asset management software has a bright future.
Asset management software can help with:
- Asset tracking
- Avoiding asset theft
- Effective inventory management
- Asset maintenance
- Accurate audit
- Shifting from manual to automated process
- Eliminating ghost asset
- Reports and analytics
Asset management eliminates manual processes and keeps track of assets with the barcode, QR Code, RFID, etc. It boosts efficiency and streamlines the daily operation, maintenance operation, inventory management, and helpful in the auditing process.
It is helpful in the physical verification process which is an essential part of an audit. Furthermore, it saves a lot of time for the organization. This software also saves the organization from ghost assets.
Asset management can save your business expenses and avoid unnecessary expenses. It is helpful in growing business and business expansion.
Also Read: What Are the Benefits of CMMS Mobile App in Business?
Frequently Asked Questions (FAQs)
1. What is a ghost asset?
A ghost asset is that asset which is physically not available but mentioned in the account books. It means that you are not using this asset but paying taxes for them. On average, there is 5 to 10 percent of ghost assets exist in every organization.
2. What is the asset audit?
Asset audit is the process in which assets are physically verified! In this process, each asset documents are checked and verified. Condition of asset is also cross-checked. In the audit process, ghost assets are identified and eliminate in the right way. The audit is helpful in understanding the financial statement.
3. In which industries asset management is used frequently?
Finance, Risk management, accounting, Real estate, business intelligence, banking, automotive, manufacturing industry are a few of the industries that utilize asset management frequently.