EAM system offers a myriad of advantages to an organization, specifically those deploying lots of assets. Moreover, did you know that EAM software can assist organizations to, well, get organized? EAM has proved to be very successful in businesses for optimizing. It is set to become more powerful in the future.
According to the PS Market Research (Prescient & Strategic Intelligence),
“The enterprise asset management market is estimated to value $4.1 billion in 2018 and is expected to grow at a CAGR of 13.5%, during 2019-2024. The major factors contributing in the growth of global enterprise asset management market include reduction of maintenance and procurement expenses, increasing adoption of EAM solutions, and improved return on assets.”
What is EAM?
EAM stands for Enterprise Asset Management. It is a system for managing the lifecycle of an asset in order to increase its operational life, from its first stage until its last stage of decommissioning. EAM minimizes costs, enhances quality and productivity.
Enterprise asset management is equipped to monitor the company's assets, optimize and track its maintenance activities. It provides answers to all asset-related questions - What is the location? Who is using it? When does it need service/maintenance? and so forth. EAM system arrived later than the CMMS system.
Also Read: Enterprise Asset Management: Complete Overview and Benefits
The main objective of EAM is to optimize asset quality and utilization of assets, while reducing costs. It helps in achieving more flexibility in terms of operating and maintaining assets while pegging expenses at low level and ensuring full and effective utilization of assets. It keeps tracks the asset right from its procurement and also helps in identifying non-performing assets.
Why Should Organizations Implement Enterprise Asset Management Software?
We have mentioned some of the reasons why organizations must implement enterprise asset management software:
1. Detect Potential Issues
Depending on how frequent each equipment and machines works, the organization can set a specific time for machine and equipment checkup e.g. 15 days, 1 month or 2 months. Thereafter inspection of assets will be done.
Consequently, you get to know if machines and equipment are working fine or not. To preempt the first sign of trouble in an asset, you should use implement EAM software to avoid operational pitfalls.
EAM software is designed to detect potential issues as it employs preventive maintenance and also provides the facility to schedule maintenance. It means you do not have to manually track every piece of equipment for maintenance. The software precisely does this and also sends alerts in advance for maintenance.
2. Return on Investment (ROI)
Maintenance of any hardware or software tool is expensive and can be time-consuming. It is difficult to keep a regular and accurate check overall devices and software. This leads to a poor return on investment.
Hence, a proper asset management software is required for the business to monitor and manage assets using a systematized approach. The benefits from asset management include saving money on maintenance expenses, improvement in productivity, and efficiency to lead the business to a better position with increased return on investment.
3. Real Time Asset Tracking
The most basic and yet the most powerful feature is asset tracking. It lets you know the exact details on a real-time basis. Secondly, it assists in scheduling maintenance of the asset. It also plays a vital role in increasing the lifespan of an asset.
The functional teams of the organization get to know all asset-related information, e.g. What are the current assets possessed by the organization? What are their current locations? How many of them are being utilized? Which employee is using the asset? When it will be in a free state?
Also Read: 7 Factors Why Enterprise Asset Management Is Crucial for Your Company
As a result, no asset is lost or left out, as they are all tracked. Real-time information helps in managing daily tasks and improving daily operations. The operational planning and scheduling of tasks are also enhanced with this feature.
Through the asset tracking feature, the asset/item is never out of the organization's radar. Hence, this helps in not having to buy assets unnecessarily and always having complete information on the assets.
4. Data Analytics
Assets are required to run the business. The real issue arises when it comes to expanding the scale of business. The solution lies in actionable data, intelligent information, and analytical reports.
Data adds great value to an organization in its path of business evolution and expansion. Therefore, in order to be on the growth trajectory, the first thing is to collect data and information.
When asset tracking and management are implemented correctly, accurate reports and actionable information become available. The reports and analytics are used by the management to strengthen their strategic and tactical decision-making.
5. Saving Inventory Expenses
You can avoid dead-stock and overstock situations with the help of this software. Inefficient management of inventory can lead to revenue loss besides over-spending of money etc.
When you streamline your inventory management, you not only eliminate expenses associated with human errors, but also can save money by avoiding superfluous expenditure. Most importantly, it can get product history through which stocks can be refilled in time and inventory managed effectively.
For instance, a customer comes to the shop and wants to buy a specific product. This is not available in your shop. In this illustration, the establishment has lost a potential client and business.
However, with the software, you would have received a notification informing on the low or exhausted stock and such a situation would have been avoided.
Also Read: How Important Is It for an Organization to Track Business Expenses?
Every organization wants to be on top in its domain. Enterprise asset management greatly fulfills this objective. It has an inherent ability to improve the business and manage the assets effectively.
It always provides real-time information about the assets. No asset gets lost with this software and the expenses of the organization decrease and savings are maximized.
It is important to realize that the specifications and requirements of organizations differ from one another. The ideal situation is to embed the EAM system on a foundation of insight and intelligence. An impeccable strategy improves daily operations and empowers an organization to make the most out of its assets.
Moreover, it helps organizations to cut costs and increase performance. With EAM software, the company sees an enhanced profit figure and a healthier bottom line.
If you are experiencing the problems as discussed above, Asset Infinity can assist you in offering an effective system attuned to your needs.