We know that combining new technologies can give us mind-blowing results for instance self-driving cars. However, that needs to be done carefully otherwise it will just wastage time, money, and resources. That is why asset management integration is important with ERP (enterprise resource planning). In this blog, we will explore why it is important to integrate an asset management system with existing ERP! But first, let us cover basic.
What Is ERP?
ERP stands for enterprise resource planning. It is a type of system that an organization uses for managing day-to-day activities such as planning, accounting, supply chain management, etc.
ERP helps a lot of businesses these all businesses are of different sizes. It is helpful in budget planning, tracking data, and creating reports. It eliminates data duplication and most importantly it an important tool used for integrating.
ERP is one of the famous tools among organizations. According to Statista, “Revenue is expected to show an annual growth rate (CAGR 2021-2025) of 7.4%, resulting in a market volume of US$57,437.67m by 2025.”
What Is Asset Management?
Asset management is the process of managing assets it helps track assets. With asset management, you can manage assets efficiently and increase asset lifespan. You can increase the performance of each asset with the help of proper asset management. Most of the time it is used for asset maintenance. It is the procedure in which assets are maintained, operated in a cost-effective way.
How Organizations Can Take Advantage of Asset Management Integration with Existing ERP?
Organizations can take advantages of asset management integration with existing ERP is given below:
1. Great Visibility
We know there are lots of assets that exist in a medium size and big size organizations. When we integrate asset management with ERP then we can get deep visibility of assets. Managers can get great visibility of assets; they can take better decisions about assets related to asset lifecycle, maintenance, etc.
You can automate a task to increase asset lifecycle and your assets will perform efficiently and productivity will increase. With deep visibility, you will always be informed about asset location. It will be helpful in increase the service level to the customer. For example, when you have one team working in a specific area then you get compliant from a customer from this specific area. Then you inform the team about the complaint they will to this customer location quickly and resolve the issue.
2. Minimizing Downtime
Minimizing downtime can be very helpful in optimizing asset performance. When you want to improve performance then you need to understand which assets are taking more maintenance. Furthermore, maintenance shall be provided to the asset after seeing the first sign of asset failure. As we know asset failure can be very destructive for business.
If downtime is planned then it will not affect business. However, if the downtime is not planned then it will affect the business badly. If you are into the manufacturing business then it not only results in delayed product delivery but you can also lose the customer.
Without the use of asset management software, you can lose track of maintenance, especially when an organization is equipped with a lot of assets.
3. Detailed Information
When systems such as asset management are integrated with ERP, it helps gather detailed information about assets. It provides details that help organizations in making business decisions. Details are very important for the business they have information related to business.
For instance, managers can know where they are spending more and where they to invest more to grow business. Detailed and accurate data can help in identifying issues and resolution is also hidden in the data.
With the information, you can track trends and it is very important to track trends if you want to increase your sales. Furthermore, it allows you to plan for the future, for example when you know how much inventory you are consuming than with data you can know how much inventory you will need for the next 3-month, 6-month or year.
4. Less Human Errors
The error can compromise the accuracy of data. Without accuracy, data will be no good to organizations. However, when you have an automated system the chances of error are reduced. When Integrating is done between two systems it means they can fetch data from one table to another. It also means that it decreases human interaction plus they also minimize chances of human error.
When errors are reduced your financial reports are accurate you can get depreciation and tax benefits as well. Furthermore, paperwork is reduced and moved toward an automated process.
5. Saving Expenses
IT asset management offers the knowledge needed to evaluate and comprehend the original & total cost of ownership (TCO) of assets, from the stage of procurement to disposal. The data helps IT and other businesses to control costs by better asset management and usage. It ensures that the enterprise resource planning system is managed correctly.
Asset Management integration with existing enterprise resource planning adds value to the organization. As we know asset management specializes in managing assets physically whereas enterprise resource planning specializes in managing reports, financial records and analyze data for future goals. Other than this it also helps in optimizing daily operations.
Asset management software integration is necessary for organizations if growth is their main objective.
Frequently Asked Questions (FAQs)
The benefits of asset management software are increasing productivity, avoid sudden asset failure, minimizing maintenance expenses, complete control over assets, avoiding asset theft, inventory visibility.
Integration in ERP means that you want to synchronize ERP with other software applications such as front-end software, Customer Relationship Management (CRM), etc. It is done to improve data visibility or to make the process more efficient.
Industries that use ERP are
4. Distribution and so on.