Asset management is one of the important activities for organizations specifically that are asset intensive. 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.”
Asset management is the procedure of optimizing assets so that return on investment increases. An organization needs to have complete control over their asset and that is exactly what asset management provides. Furthermore, it helps the organization in several ways.
Why Asset Management Is Important to Give Few Reasons?
There are various reasons that we have discussed below why asset management is important:
Assets are vital for an organization however when there are lots of assets it becomes a tough task to keep track of everyone. When assets are left anywhere it leads to misplacement of assets. If assets are misplaced it results in an interrupted operation that impacts the productivity of the organization. Furthermore, asset theft both scenarios can occur. Both scenarios lead to the unnecessary purchase of an asset.
To avoid asset theft and asset misplacement, organizations need to invest in asset management software. This software keeps track of assets with the help of barcode, QR Code (Quick Response code), RFID (Radio-frequency identification). These are asset tracking technology that provides accurate location of assets and equipment.
Asset maintenance is a big issue for organizations! Why? Mainly there are two reasons the first reason is lots of assets and the second reason is manual tracking of maintenance.
Industries such as automotive and manufacturing have several types of equipment, machines that are large in size. These assets need maintenance at regular intervals and maintenance must be done proactively. Because in case any breakdown occurs it will lead to business loss. If maintenance is not given on time, it can result in
- Decreased productivity
- Increased asset breakdown chances
- Compliance issue
- Increased maintenance expenses
- Daily operation interruption
One of the main reasons behind using asset management software is asset maintenance. This software specializes in keeping track of maintenance. It alerts the team about upcoming maintenance tasks related to different-different assets. In simple words, this software schedules maintenance and streamline maintenance tasks.
Automated Organizing Upcoming Tasks
For effective work, lots of activities take place simultaneously. For instance, let us take an example of maintenance work! In software when a machine is scheduled for maintenance then work order processes something like! The technician is alerted about the maintenance work. A checklist of work is created and technicians go through the list.
After this, work order processes into the next stage in which maintenance work starts. At the same time, the required inventory is checked if it is available or not. If an inventory is unavailable then this maintenance work will not be considered effective work because the whole process will be repeated.
However, with this software, you can keep track of your maintenance work and ensure inventory availability. Furthermore, this software allows you to put every piece of information there in real-time. It means it keeps information centralized.
Just like assets, inventory is also important especially because they play important role in asset maintenance. They properly need to be tracked because if they are not found it will impact productivity.
However, when you have this software, you can ensure inventory availability. How? By setting a re-order point, it means you can define a particular for each inventory whenever inventory goes below that number the responsible person will be notified about the inventory. After that, the refilling of the inventory process begins!
For every business sector, there are rules, regulations, and policies that are formed to take care of humans and the environment. If these rules and regulations are not completely followed then it can result in a huge penalty. Take software compliance, for instance, if it is found that you are using expired software during an external audit then it can be lethal for your business.
However, when you have this software, you will not have to worry about expiring software because it will alert you in advance and you easily avoid software compliance issues.
Data such as asset history, maintenance logs are very helpful in asset condition monitoring. This type of data is very helpful in making an accurate decision about each asset for instance life expectancy.
Reports such as MTBF, MTTR help decrease downtime and asset breakdown. Overall, data is helpful in understanding where you are putting your resources, and where you need to invest.
In the reports section, you can get detailed asset reports about expenses related to maintenance, inventory, and assets.
Audit & Physical Verification
An audit is an evitable activity that is done regularly by government entities. It is a detailed inspection of the work process, assets, etc. All the documents are checked and auditors check if the organization complies as per the rules and regulations. All assets are verified physically with their legal documents. The audit process is usually long and exhausting.
This software helps in preparing for the audit process as it keeps track of assets and documents. Furthermore, it can assist in discovering flaws and errors in daily operations. With the process, you can know if there are any ghost assets in your organization or not!
With this software, you can discard assets in the right way when you found about ghost assets, stolen assets, or when their working life is over.
Effective asset management brings efficiency, saves asset from theft & misplacement, boost asset performance, increases return on investment (ROI), decreases maintenance cost and other expenses as well! Everything that an organization wants, right? Still, lots of organizations do not invest in asset management software.
The bigger picture will look like this after investing in this software:
- Enhanced productivity
- Better customer satisfaction
- Reduced maintenance expenses
- Visibility and control over inventory and assets
- Better service-level achieved
- Implementing preventive maintenance to avoid breakdown
Frequently Asked Questions (FAQs)
These asset tracking technologies are utilized in the form of tags or labels. A tag is attached to the label of each asset and has a unique identification number that assists in gathering information about each asset such as asset location. When you know the accurate location of assets you will not have to waste time finding assets and it saves from asset theft as well.
Ghost assets are those assets that are physically not available but, in the book of accounts and ledger, they are mentioned. Futhermore, you are paying taxes for those assets which you are not even using. The assets which are not tracked, missing, or stolen turn into ghost assets.
Asset Management software is useful for all those industries and organizations which have assets in abundance and asset-intensive. Those organization which has issues in managing assets, Industries such as manufacturing, logistics, locomotive, education, etc.