What Are the Requirements of the Asset Management System?

For any business, it is important to manage its assets on a priority basis, rather than managing any other thing.

Organizations that implement an asset management system usually observe more benefits and ROI in business, than experienced any time before.

From the past many years, the asset management system has been successful in facilitating many companies and organizations to save a lot of money and reduce notable administrative manpower.

Common Requirements of Asset Management System

1. Simple and Easy Asset Addition
2. Easy Calculation of Depreciation
3. Simple Financial Asset Management
4. Automated Asset Lifecycle Management
5. Unique Asset Tagging & their Periodic Scan for accuracy
6. Scheduled Preventive Maintenance
7. Asset Performance Reporting
8. Audits and Physical Verification of Assets

Also Read: 8 Evergreen Asset Tracking Software Benefits That Helps Business

What Does the Asset Management System Do?

The asset management system includes assisting in the following activities to make the operations simple and easy.

• Asset Inventory Control
• Asset Tracking
• Security
• Scalability
• Cost Efficiency
• Operation and Activity Convenience
• Integrity
• Controlled Access
• Aesthetics and Integrations
• Document Tracking
• Asset and Equipment Maintenance
• Improved Asset Utilization
• Capitalize on Lower Insurance Premiums
• Increased Efficiency
• Ensure Regulatory Compliance

What Could Any Business Require an Asset Management System?

Asset Management System is a set of practices which involve identification, discovery, procurement, management, monitoring, and dispose of all the assets in the organization.

The feature which is mostly required in the asset management system is its centralized data. Through centralized data with the software's mobile app, it is easier and convenient to check and update the information from any place at any time.

Other Requirements of the Asset Management System Are:

Also Read: Asset Management Strategies That Can Help Your Business

1. Scan Asset Labels

It is required to know the asset details in a short span or immediately, which is why all the assets and equipment are tagged with unique asset tags/labels (Barcode, QR code, NFC tag, etc.). So that the asset can be scanned any time anywhere.

Whenever the asset or equipment's unique ID (tag/label) is scanned, all its related information in the database will get displayed on your screen.

You can scan these tags/labels with handheld readers and mobile phones, to get the information in real-time.

Asset Tags or Scanning devices gives you various information like -

• Asset's Manufacturing Date
• Company's name from which item was purchased
• Cost/Price of the asset
• The shelf life of the asset
• Allotted or assigned person of the asset
• Other important information regarding the item

2. Depreciation Management

Depreciation is an accounting process through which an organization calculates the value of an asset that declines over time.

Whenever a financial statement is made, it includes depreciation expenses to distribute the amount which it has acquired in the financial year like the number of buildings, machines, or equipment.

Depreciation Management counts on the following -

• Method and Rate of Depreciation
• Useful Life of an asset
• Scrap Value of an asset

3. Real-time Alerts

Real-time data is the information that is delivered immediately after it is collected. There is no kind of delay in the timeline of the provided information. This data is managed using real-time computing. It can also be saved or used for off-line data analysis.

This idea is of handling the data in real-time is popular in new technologies with their software and convenient mobile inventory apps.

It can give you real-time data of assets, whenever an asset is added, any change is made in its allotment, or it is discarded.

4. Preventive Maintenance Scheduling

Preventive maintenance is the activity done to prevent any potential failures & solve them as early as they are detected and avoid unexpected hindrance in the operations.

Preventive maintenance scheduling can give you the following benefits -

• Machine proficiency
• Unexpected hindrance or malfunctioning
• Timesaving
• Money-saving

5. Software License Management

Through software license management you can control and can make a document that will keep the information related to the software used in the organization.

This information will include where and how the software products are running to ensure compliance with software licenses. Software license management overall involves reducing, documenting, and controlling the total IT cost.

Benefits of software license management are -

• Money-saving
• Proper utilization of licenses
• Compliance with software licenses
• Reduced waste of precious resources

Also Read: Leading Attributes of Asset Management Software in 2022

6. Software and Hardware Inventory

All the software and hardware items in the organization are managed and maintained with the asset management software. The care of software and hardware inventory is also done.

This management of software and hardware includes -

• Automated discovery and storage of IT assets
• Detection and tracking of configuration changes
• Track of asset's lifecycle
• Track of asset's expiry and renewal
• Track of asset's licenses

7. Fast & Easy GRN Process

Goods Receive Note (GRN) is a document that will be raised when the goods are physically received in the storage area or the desired destination.

According to the priority, the requirement records will be saved automatically with all the details of items & goods. It is an important document for payment support when the vendor submits its invoice.

8. Emails & Notifications of Tickets

In the ticketing management system, tickets are referred to as a document that holds the information about the problem or query, its status, and other additional information.

These tickets are raised by the end-users of an organization when they encounter any issue that interrupts their workflow.

Therefore, e-mails & notifications are provided for the generated tickets to know on what stage your ticket is being resolved.

9. Audit Reports

The audit report is a report that describes and contains the audit's opinion after the examination of the organization's financial statements and their related reports.

The asset audit report will include financial statements, management accounts, management reports, complaint reports, etc.

Audit reports are generated annually and will help stakeholders and the board of directors to assess integrity management and maintain the transparency of financial reports.

10. Due Date Tracking

Through due date tracking, you can track the due date of maintenance of any asset or equipment. So, the event shall not get missed.

You can even set the date of prior notifications and alerts, manually i.e. how many days or weeks before you want to get notified about the maintenance event.

What are the main Objectives of the Asset Management System?

The main objective of the asset management system is to develop a systematized and automated system which could make effective, easy to manage, simple to maintain, reliable to all the fixed as well as movable assets.

Following are the main objectives of the asset management system:

• Proper utilization of each and every asset and equipment
• To determine the condition and functionalities of assets
• To categorize assets by their category
• To create a well-organized database
• Ensure easy to monitor, manage, operate & control system
• To make work and operations in a limited time period
• To keep the security of all the data and documents of assets intact

Also Read: 5 Most Common CMMS Software Mistakes That a Company Does

Conclusion

These all are the features that are required by any organization to implement an asset management system in their operational workflow.

The asset management system should learn the requirements of their clients and work on it to get itself more acknowledged.