Is there any difference between asset tracking and asset management? Most people use it on one place of another. However, it is very important to understand the difference between asset tracking and asset management. Let us understand both terms!
What is Fixed Asset Management?
Fixed asset management is the management of assets from the stage of its procurement to the ends stage disposal. It assists in increasing the asset life in all stages. It improves the quality of the asset and enhances the asset management process.
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.
Also Read: The Definitive Guide to Fixed Asset Tracking & Management
What is Fixed Asset Tracking?
Fixed asset tracking is the process in which you get to know an asset's real-time location. Fixed asset tracking is an important aspect of Asset management.
It is also helpful in keeping your valuable assets well-organized. Asset tracking is achieved with the assistance of barcode, RFID, etc. As a result, it assists you in acquiring crucial information such as:
- What is the current location of each asset?
- What is the current condition of the asset?
- Which asset is assigned to which employee?
- What is the current state of an asset (Free, assigned, etc.)?
- Which asset needs maintenance?
- Which asset needs to be replaced (if there are any)?
Therefore, through proper asset tracking, you can take better strategic decisions for e.g. on-time consignment delivery.
What is the difference between asset tracking and asset management?
The exact location and condition of an asset are retrieved with fixed asset tracking. On the other hand, asset management is used in analyzing asset, maintenance. One of the main objectives of fixed asset management is the assessments of an organization's property for financial accounting.
For instance, fixed asset tracking provides data on the location, quantity, and condition of a company's physical property. After that, asset management takes that data a step further to include analysis, predictions, and assessments of the assets for the purpose of financial accounting.
If we talk about the fixed asset tracking software and fixed asset management software. Both of these have, almost the same functionalities and features.
Both of these are quite helpful in terms of increasing organizational productivity and business operation & saving a lot of time as well as money. Therefore, when you are exploring websites for any of the software you will both terms are used for each other.
Fixed asset management & fixed asset tracking both come with mobile technology & cloud-based technology. Through these technologies, you can access the data from anywhere and update the information from anywhere as well. The scheduling of maintenance can be done with the asset & equipment information.
Fixed asset management & fixed asset tracking is the necessity in order to become a successful organization in the market. Inaccurate asset management can lead to wrong business commitment and that will definitely impact your organization's future goals.
When an organization does not have complete control & knowledge about their assets. They usually lose a lot of money before they begin to seek a solution.
As a result, you can see less human error data, no equipment loss accurate data, improved customer satisfaction, better compliance. The bottom line is organization efficiency increases, business growth can be seen & real-time inventory & asset tracking.
Also Read: The Asset Management Structure for Big Organizations
Since you know the contrast between terms, you can convey & understand more viably with what they are offering & what is your exact requirement. This knowledge will aid you in order to get the best software according to your specifications and requirement.
We know that one size fits all approach does not work, even if both organizations belong to the same industry.
Frequently Asked Questions (FAQs)
1. How can businesses keep track of fixed assets?
Fixed assets are tracked, with the help of serial numbers, asset tags, and label for precise tracking. The most common methods are barcode and RFID used for asset tracking. However, there are many other options are also available.
2. Why is fixed asset management important?
Asset management is significant because it enables an organization to view, manage & monitor with its assets utilizing a systematic methodology. In conclusion, when an organization's productivity and efficiency get upgraded then it puts the organization in a better situation to increase ROI (return on investment).
3. What are the objectives of asset management?
As we have said earlier asset management is important in achieving the objective and goal of the company. It helps in avoiding loss and increasing efficiency. We have mentioned below a few goals of asset management.
1. Identifying non-productive assets - It saves from producing items too much. It eliminates the waste by identifying the fault in a product's results wastage of raw material.
2. Optimization - Precise asset management can assist you in optimizing your daily action & operation that involves the planning, resources use, and in the executing management program.
3. Maximizing ROI (Return on Investment) - Asset management provides numerous advantages to organizations spanning a multitude of industries. For instance, manufacturing, education, healthcare, government, oil & gas, hospitality, and so on.
In other words, each industry can profit from more streamlined procedures and enhanced overall growth, making asset management an important and safe investment choice for companies.