A company may deploy several equipment and resources at the workplace that are used by its employees to perform the several tasks related to their jobs. The duty of the employees is to utilize these resources to create revenue for the company. Every day, they will come to the workplace, do their assignment, and leave after their shift is over.
The owner of these assets is the company, not the employees. As long as the employees are sincere and taking responsibilities for the assets provided to them, the company won't have to concern much about the accountability of its employees. There won't be a disturbance in their workflow.
Equipment Breakdown Is Prevalent
Cases of equipment breakdown or system failure can occur due to unforeseen circumstances. This may lead to downtime in business due to the impairment of assets and machinery. The organization must implement a regulatory system to monitor the resources as well as the employees to avoid such an event.
Consider that you have a retail business and your employees are using resources to carry out the daily chore. One day, you found out that the steering wheel of the tow truck you provided for the warehouse has broken down. Then several questions bubbled up inside your head.
Who did this? When was the vehicle assigned, to whom and for what purpose? Should I trust my employees? What would be the maintenance cost if repair and replace the steering? Or should I purchase a new vehicle?
Here are some tips that will free your mind from the worry of asset breakdown.
Establish an Asset Requisition Process
In order to monitor the allowance of assets to the employees, every company is required to set a guideline for allocation which is also known as the requisition process. In this system, there will be a formal procedure when handing over the assets to the employees.
It is a process where the report of “requesting” and “allotting” of equipment is recorded. Certain information will be noted down in this process.
From a requisition process, a company will able to see the information like status, condition, the location of the particular assets, and to whom it was assigned.
Monitor Your Workplace With Asset Tracking Software
By using asset tracking management software provider Asset Infinity, you can maintain the audit trail of the assets used in the business. You can check the movement history of single or multiple assets regarding the information in this cloud-based application.
The information may include the name of the asset, quantity, date and time of allotment, quality, depreciation cost, and user detail like the name of the assignee and the associated department.
In the cloud-based (CMMS) computerized maintenance management system, you can create and attach barcode stickers to multiple assets at the time of allotment to multiple users, departments and locations. This asset audit software will indicate you about the status of the assets as well as its asset value.
Enterprise Asset Management helps you Review Employee Profiles
Many companies encounter asset misappropriation incidents involving its employees. These individuals abuse the company resources provided to them by either exploiting or callously handling them. This could even drag the organization into fraudulent scandals.
Asset Infinity can prevent your organization from such a situation. At the time of allotting the assets, you can record information about the assignees' details -
- Employee Code
- Previous Allotment Detail
- Types of Equipment they have Used, and
- The Number of Allowances
From this accurate data recorded in the facility management program, you can grasp the history of the employees and how they have been using the company resources from time to time.
For example, an employee Mr X has requested a brand-new computer on his desk. From his profile, you found out that the person had already replaced the system for a few times in the past. The administrative can either take disciplinary action him or terminate him for the offence.
Asset Tracking Software Can Help in Optimal Usage of Assets
With asset tracking software, you will know how long a specific asset can be issued to specific persons. By using this dynamic equipment tracking software, you can record the information of the assets along with the time of allocation.
For instance, a printer is being assigned to an employee of a specific department. At the time of handing over the asset to the person, you can define an expiry date to the asset. When the asset reached its expiry date, the asset tracking system will send a reminder for returning the assets.
What Is the Asset Requisition Process?
The asset requisition process is a hectic process, especially when the process is manual it can be a time-consuming process because when an organization is huge then employees' demands are also so many.
It is important to figure out which employee actually requires it, which does not. When employees are productive then obviously the organization's productivity also increases.
The asset requisition process is the process in which employees need an asset or want to purchase assets on behalf of an organization. So, employees raise requests to the manager then the manager approves them or rejects them.
If the rejection is done, then justification is provided if approved then the request is forwarded to the finance department. Then the finance department will check the budget and quantity.
If they do not have much budget, then quantity will be decreased or if they do not have a budget at all then purchase request will be disapproved and justification will be done.
As per the budget, quantity is approved, and the purchase order is created & this purchase order is sent to the vendor. Then the vendor acknowledges the purchase order and sends the quantity to the organization as per the purchase order.
When your organization is equipped with automated purchase management software then the process becomes quite simple. Whenever any update occurs in the purchase requisition the employee and all the management members in the loop are also notified.
There are more features such as Auditing of your assets & Physical verification, Maintenance management, Utility Monitoring, and report on the equipment you can use from anywhere, at any time. Asset Infinity offers a free 14-day trial - no credit card required!
Recommend To Read: How to Streamline Your Organization's Purchase Requisition Process?
Frequently Asked Questions (FAQs)
1. What Are the Benefits of Automated Purchase Order Software?
The benefits of automated purchase software are discussed below:
1. Decreases the chance of fraudulent activities.
2. Unnecessary expenses are saved.
3. Reduces chances of human error.
4. Increases speeds of the purchase order.
2. What Is the Difference Between Purchase Requisition & Purchase Order?
Difference between purchase requisition & purchase order:
1. Purchase requisition stays inside the organization whereas purchase order goes outside the premise of the organization.
2. Changes can be made to the purchase requisition whereas one cannot make changes in the purchase order.
3. A purchase requisition is permission for purchasing whereas a purchase order is a confirmed order.
3. How Assets That Are Purchased Are Tracked?
After an asset is acquired all the asset tagging is done and information is stored in the database. After that information is stored in the asset register as well so that asset tracking can be done easily and accurately.