The Importance of Asset Management in the Transportation Business

Assets are one of the company’s assets. Goods in the form of land, machinery, bonds, shares, vehicles, and all objects that have value and can be pledged as collateral if needed at any time. Good asset management keeps the company’s revenue growth at maximum performance. Company assets that function properly will lead the company to achieve targets in the future. Now, your asset management can be assisted by Asset management software. This article will explain all the importance of asset management in the transportation business.

It’s Good to Maintain Asset Quality to Stay Good

In the transportation business such as taxis, motorbikes, shuttle buses, logistics, airplanes, and ships, the means of transportation or vehicles owned by the company are valuable assets.

The implementation of asset management with regularly controlled vehicle services will keep the vehicle’s performance qualified, prevent the vehicle from damage that causes asset value to decrease, reduce vehicle performance which has an impact on service decline, and also causes a decrease in revenue.

Finance Optimizing Corporate Finance

Companies need asset management to see the performance of their vehicles. Asset management software can measure fuel use in one vehicle as well as the vehicle’s odometer. This will really help the company to take care of the vehicles they have. To be more specific, there is also fleet management software to help you optimize vehicle management in your company. With this, you can also track the fuel usage and movement of each of your vehicles.

Undoubtedly, having complete data on the amount of vehicle fuel for a given distance unit makes estimating daily or monthly costs easier for companies.

In addition, vehicle mileage data through vehicle odometer tracking can also help companies perform better asset management. For example, to find out when the engine oil should be changed, for every thousand kilometers the tires must be replaced with new ones while the brake pads must be replaced.

For each distance, it is a must to check the electricity and radiator water in the vehicle. All this data will then lead to an estimate of the budget that the company must prepare each month.

Asset Impairment Control

Impairment in asset values is very common in fixed assets such as vehicles. Years of production, service life, and technological developments support the decline in vehicle asset values. For this reason, the implementation of asset management will facilitate monitoring of the decline in the value of their assets. Thus, it will help companies budget for future asset purchases.

Driver Briefing on Vehicle Drivers

Maintenance of vehicle asset management applies to all parts attached to the vehicle and the driver. Understanding the driver is a matter of how the engine system of a vehicle works, how far the vehicle must travel before the oil must be changed, how much fuel is used for one trip, and how many thousand kilometers must be traveled. vehicle until the tires need to be replaced. This is general knowledge that drivers should have.

In addition, the knowledge possessed by the driver will be very much needed in the event of a sudden breakdown so that the driver can take the necessary action quickly. By providing knowledge about the vehicle they use will create a sense of security for customers and can realize maximum service.

Decision Assists Company Management in Making Decisions

Asset management enables dialogue between company directors, asset management managers and day-to-day operations workers. All parties who gain access to view all data from asset management reports will create this dialog. And furthermore, this data will be very useful for company management in making decisions in terms of managing their assets.

Good Risk Management

Asset management transportation helps companies keep their vehicles operating optimally. Vehicles that operate optimally will ensure the safety of the driver and passengers while on the road.

Good risk management will prevent the company from the risk of accidents that have a negative impact on customer confidence in the company on the one hand and on the other hand, have an impact on revenue decline.

Also read: What is an Asset Management System? Its Benefits & Features 

Company Assets Are More Protected

Utilization of asset management software from HashMicro in transportation companies, helps you keep track of anything. Starting from the location of your vehicle, the route of travel, and how far the distance and time traveled. That way you can keep an eye on your assets and make your assets more secure.

Conclusion

In short, Asset management is very important, because it is one of the steps to keep your business running. It might be difficult to do it manually, but now with ERP software, you can easily automate most of your processes in business. Get help from a trusted ERP company to produce your own business ERP software. HashMicro will provide the best ERP experience, with customizable software to make it easier to achieve your goals. You can start HashMicro’s Asset Management Software demo for free now.