Assets are resources that a business or company owns and uses to create value for its customers. There are physical assets such as vehicles and buildings, as well as intangible assets like patents and trademarks. As each and every asset is a precious resource, it is crucial to manage all the assets. This is where asset management comes in.
Managing an asset involves the systematic and strategic management of an asset throughout its lifecycle. However, asset management can be challenging and time-consuming, especially for businesses with large and diverse asset portfolios. Fortunately, ERP (Enterprise Resource Planning) software can help simplify and streamline the asset management process. This makes it easier for businesses or companies to manage their assets.
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Why Do Companies Need to Manage Assets?
As we know, managing assets is an essential part of running a successful business. It involves keeping track of a company’s physical, financial, and digital resources and ensuring that they are being used effectively. While asset management can be a challenging task, it is crucial for companies of all sizes to manage assets due to these three reasons.
Increase the assets’ lifespan
Regular maintenance and inspections can help identify potential issues early and prevent them from becoming major problems. This extends the lifespan of an asset and delays costly replacements. Therefore, increasing the lifespan of assets through asset management can ultimately reduce costs, improve efficiency, and promote sustainability for companies and businesses.
Reduce risks
Managing assets regularly can help reduce or eliminate risks, which can prevent sudden operational failures and the need for emergency repairs or replacements. By prioritizing assets based on their functions and assessing risks, you can make your business more reliable and efficient to customers, employees, suppliers, and other stakeholders.
Effective budgeting
Effective budgeting relies on the ability of asset management to monitor the status of your assets and make informed decisions about future investments. With improved visibility of assets, decision-makers have access to accurate information to assess the sustainability and effectiveness of assets. Thus, you will be able to estimate the necessary budget for repairing, servicing, and replacing assets to manage them.
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The Roles of ERP in Managing Assets
Enterprise Resource Planning software has been widely used by businesses and companies to streamline their operations and improve efficiency. Among the various functions, ERP software can also help manage your assets. As it can be difficult and challenging or to manage assets, ERP will be able to help with its five main roles in asset management.
Monitor assets in real-time
Real-time asset monitoring is crucial in managing the dynamic assets within a business. Manually tracking all assets and their histories has proven to be quite difficult. Therefore, it is important to have a documented system that records the whereabouts of assets. This ensures that no assets are misplaced or forgotten, and prevents the failure to utilize them.
By using ERP, you can effectively track your physical assets in real-time and gain full control over equipment regardless of its location. This is particularly beneficial for asset-intensive enterprises. With real-time data, you can strategize efficiently in asset usage, scheduling, and maintenance. Thus, you can reduce asset shortages, as well as detect asset theft, loss, or misplacement.
Create an effective operation
To achieve an effective operation, challenges such as delays and high costs related to asset support must be overcome. These issues are often caused by outdated workflows and processes based on manual tasks, which can lead to disruptions and mistakes. However, ERP software can help you manage assets by digitizing processes and reducing the need for repetitive and time-consuming data entry.
Also Read: 5 Best Asset Software to Maximize Auditing Process
Improve assets’ reliability
Maximizing asset uptime is a primary objective for businesses, as it enhances production and profitability. With that, implementing an ERP software can extend the lifespan of physical assets and minimize unexpected breakdowns that disrupt the manufacturing cycle. By prioritizing management, businesses can improve their assets’ reliability and ensure they are available for use when needed, maximizing their potential benefits.
Centralized data
A little similar to other business solutions, the ERP software is able to facilitate the centralization of operational data within a single location. This centralized system provides shared access to employees and different departments, promoting enhanced collaboration and communication within the organization.
In-depth reports and analytics
In making informed business decisions, access to comprehensive analytics is crucial. That is why, ERP has an important role in tracking the cost and flow of your assets, from their purchase to the total maintenance expenses incurred throughout their lifecycle. The in-depth report and analytics generated by the software provide valuable insights into the total cost of ownership (TCO). This allows you to optimize investments and expenses for future growth, helping you manage your assets.
Also Read: Singapore Best Asset Management Software in 2023
Advanced Asset Management Software Recommendation
Utilizing an ERP software to manage assets may be new and unfamiliar, but not to worry as we recommend the best advanced ERP software solution. This recommended ERP is HashMicro’s Asset Management Software. With this software, businesses or companies can gain maximum control over their assets. The Asset Management Software allows you to track asset usage, schedule maintenance, and automatically calculate ROI and expenses.
This ERP software solution provides several benefits, such as easy asset identification, accurate asset valuation, timely maintenance, and simplified leasing procedures. The main features of the Asset Management Software include asset tracking, service logs, contract tracking, cost analysis, asset stock-taking, and asset reporting. Furthermore, the price is affordable with a PSG up to 50%.
Conclusion
To conclude, as assets are valuable resources for businesses and companies, it is crucial to manage them effectively. To do that, you need ERP as it has several important roles in managing assets. One of the best ERP software recommended to manage assets is HashMicro’s Asset Management Software. With this system, you can easily monitor and track all your assets. Moreover, HashMicro also provides a free demo of the software for you to try out.
