Companies acquire various assets to add value and their income. However, they face some asset tracking issues regularly and ultimately lower their productivity. In the digital age, businesses must manage and track more assets than ever before. The best asset management system makes it easy for you to automatically track assets, schedule maintenance, also calculate ROI and expenses for each item. With increasingly complex cloud technologies, license-based software, and constant updates, managing and tracking assets has become much more complicated. Inappropriate asset cost management, mismanagement or placement can harm company profits. Therefore a centralized asset management application is needed.
Why is asset management essential?
Most tangible assets are registered as factory property and equipment, while intangible assets consist of patents and brand names. An intangible business asset is worth more than just money and can add to future growth prospects.
All types of tools and equipment an organization has needed to be tracked. This can be done by designing a barcode or QR code for the asset. These tags can help alleviate asset tracking problems by allowing you to monitor who is using your assets and how.
Managing assets effectively and maximizing asset effectiveness are the keys to achieving production targets, controlling expenses, and meeting company and organizational goals. The best way to address gaps in your asset management strategy is to identify challenges and look for ways to overcome them.
The following are the disadvantages that you can avoid from implementing an asset management system:
1. The loss of assets due to misplacement
Loss and displacement of equipment are significant problems faced by asset managers that can decrease revenue due to poor security. To control losses through theft or misplacement, companies must implement an effective tracking system.
Asset tracking solutions allow you to label all your tools and equipment with barcode or RFID (Radio Frequency Identification) technology. These two options can be selected based on an in-depth analysis of the company’s needs. Without routine asset checks, your company can suffer financial losses because you can be charged with paying taxes, insurance, purchases, and maintenance of assets that are not needed.
Therefore, it is crucial to know the number of assets you own and the number of listed assets in your books. Closely monitoring all of your purchases will help reduce costs associated with retrieving lost or stolen items.
2. Out of stock or overproduction
When it comes to holding certain assets, determining the proper amount can be tricky. When it comes to stock management, you tend to face under or over assets. This can result in overhead costs or cause workflow delays.
Why do companies handle inaccurate stock levels so often? In large part due to an inadequate system to measure the optimal quantity of stock required. Most effectively, the company chose an asset management system that allows the business to set a minimum threshold notification for all assets. Whenever this limit is reached, an automatic purchase order is created, and the associated vendor will receive information.
Conversely, excess stock takes up warehouse space and makes items obsolete if stored too long. To avoid such mistakes, it is advisable to study consumption patterns extensively so that business can calculate an accurate demand for an asset.
3. Damage to tools that often occur
Using automated tracking software, companies can routinely carry out repairs and maintenance over the equipment’s life cycle. With an asset management system, businesses can find out the condition of their assets in real-time. For example, it makes it easier to find information about the service history of the company’s machines/vehicles, find out the status of the vehicle’s engine, track the location of the vehicle, and arrange a schedule for the next maintenance. As a result, preventive action successfully improves company performance by keeping equipment in good condition and lowering overall maintenance costs.
4. Event failure due to unavailability of assets
The company holds many external and internal meetings and conferences every day. The purpose of these events usually varies, from important agenda meetings or sometimes office leisure activities. Therefore, office events must be well planned.
Any asset tracking software helps manage your company’s available assets, reserved, inspected or under maintenance, making it easier for you to plan events. With the help of automated applications, you no longer need to waste your valuable time inputting asset updates.
Asset management software automates your asset management process, from monitoring, checking depreciation, scheduling maintenance, managing contracts to generating accurate asset reports. Therefore, businesses can improve their operational efficiency, effectiveness and productivity.