Big businesses need to operate and maintain a huge quantum of assets to continue their activity, whether these are IT assets, plant equipment, machines, or regular consumables/inventories.
Assets are thus required to run the business. The real issue is when it comes to growing the business. The answer is actionable data, intelligent information, and analytical reports.
Data adds great value to an organization in its path of evolution and expansion. However, the first thing to get information about asset management software and its reports.
What is Asset Management Software and why it is so important?
There are inherent risks involved if an asset management software is absent in an organization. Every single asset, machine, or equipment, where fixed or movable, is important for business operations.
Obtaining and leveraging data without proper asset management software proves to be a difficult exercise. Even an insignificant error can have an impact on the value chain of the business.
For instance, the software can get outdated if due attention is not paid. If the software license is going to expire, it has to be renewed in time. If an audit is performed and an expired software is found to be in use, penalties can ensue. It is vital therefore to track such information. An asset management software solution is key.
An effective asset management software is required for a business to monitor and manage its assets using a systemized approach. The benefits of asset management solutions include improvement in productivity and efficiency measures. These eventually place the business on a pedestal to increase their return on investment.
The asset management solution is important as it enables retrieval of complete information on assets' life cycles. The centralized system helps in integrating with other systems to get all the required information and in controlling costs in the process.
Asset Management software should be able to provide data reports on different aspects that we have discussed below.
5 Essential Asset Management Reports
1. Inventory Report
This is one of the most essential reports for any business. When information about inventory levels are available, the organization knows how much stocks are being used and when is the time to reorder.
Through data analytics, the company knows in advance which stocks are more in demand and in which period. Planning can thus be put in place as per that information. Moreover, inventory reports can actually save expenses by avoidance of overstocking.
2. Maintenance Information
If the organization has a lot of assets that need regular maintenance, the relevant reports can greatly benefit the business by controlling expenses and saving money.
The detailed maintenance report shows details like which assets are most utilized, how each asset is performing, which asset needs maintenance, or what are the costs incurred on such. The complete asset information is available such as asset history, maintenance trails, cost records, etc.
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 strategical and tactical decision-making.
3. Audit reports
A big company control assets whose numbers can be in thousands. Auditing is very crucial for identifying and verifying the physical presence of assets.
At times, the question could be how many assets are on lease and where they are located. Auditing provides answers to such questions.
The audit report describes the findings and reveals the auditor's observations post the examination of financial statements and related reports.
Audit reports are generated perodically and help stakeholders and the management to assess the integrity of asset management and the enterprise financial performance.
The audit reports effectively provide insights to an organization by reporting on inadequate, ineffective or underutilized assets.
4. Employee Productivity
Employees are the best resources of an organization. They are the people who can intervene in breakdown situations and put the equipment back in operation.
The asset management system can provide analytics on personnel and let the organization which technician is best suited and geographically located to attend to an incident or breakdown.
The system provides the geo-coordinates of the location of personnel and it can be used to assign the ticket to the most skilled technician available in the area.
Keeping such track of employees is also crucial for safety concerns especially when they are located in remote construction sites or in hazardous environments. The asset tracking and management software can also provide productivity analytics of employed personnel.
5. Review Workflow
Every organization defines a workflow under which it is indicated how assets are being managed. When there is a detailed workflow, the activity gets organized and assets are utilized more effectively.
Moreover, asset management software enables in reviewing the complete process to make it clear and effective for all users. For example, when a machine is sent for maintenance, information such as the time taken for completion, the number of stages in the processes of are all necessary to know the maintenance track record.
Therefore, the work process and asset-related reports go hand-in-hand for the effectiveness of the asset upkeep department.
What if an organization does not use asset management software?
Below are some of the consequences an organization could face if it does not have an asset management software in its management toolkit.
Less return on investment: Maintenance of any hardware or software tool is expensive and time-consuming. It is difficult to keep a regular and accurate check over all the devices and software, leading to a poor return on investment.
Poor asset performance: Improper functioning of assets compounded by a lack of visibility on sub-par assets can lead to productivity loss and increased downtime lag.
Unable to manage inventory: Without an accurate asset management system, inventories can get messed up, especially for remote locations. It is a critical aspect of the asset management system to remotely control data, manage access, install or update software across all enterprise devices.
Unable to identify unused assets: For the field personnel of an organization, it is important to know about the whereabouts of unused assets, when an asset is available or ceases to be available.
As mentioned above, data provides the user with significant information that is critical for business growth. As the operations scale up, it is a disorganized or inefficient method to keep manual records on paper.
The asset management software drives data-drives processes with automated and updated information in real-time. Among other benefits, the software generates several types of analytical reports for executive management. Information is just a click away and the business saves a lot of time and money. The setup is just right for business expansion.