Asset management is a systematic process of developing, operating, maintaining, upgrading, and disposing of assets cost-effectively (The Institute of Asset Management, 2018).
Your business, like any business, has a set of assets and resources essential to your ability to deliver value to your clients. If an asset misses a maintenance check, gets lost, damaged, or is not repaired in time, costs will snowball into a significant dent in your profit margin.
Costs of Asset Mismanagement
• The cost of asset repair or replacement on short notice.
• The cost of time lost while your operations are completely or partially disrupted.
• The cost of idle staff.
• Most importantly, the cost of a dissatisfied client.
A bigger business means more assets to manage and a greater chance for things to go wrong. Not a big business yet? Then your growth relies on establishing and implementing an asset management process tailored to your business’s operations. How do you do that exactly? You don’t.
The best way to avoid human error, increase speed and efficiency of your operations and reduce cost would be to use Asset Management Software that automates the process of developing, operating, maintaining, upgrading, and disposing of all assets while tracking where your assets are being used and by whom. They work via the placement of asset information in a centralised database, putting the big picture into perspective.
What can Asset Management Software do?
Asset Lifecycle Tracking
Tracking assets throughout their complete lifecycle allow you to point out inefficient practices and replace them with strategies that enhance acquisition and operation, increasing your return on investment. Through analysis of their asset lifecycle CISCO, IT was able to cut a $100 million in costs by 50% (CISCO).
Enhance Reliability of Assets
Patterns recognised through tracking assets enables you to create strategies that balance asset availability with costs and accordingly schedule maintenance runs. Having a system in place also enables you to respond to problems before they cause damage and determine critical components of larger systems that require extra care or ready to install spares.
Empower with data
Beyond maintaining and monitoring assets, a significant feature of an Asset Management Software is the amount of data it provides about your business’s operation. That data could be used to reduce operational cost and time spend on multiple tasks like financial reporting and risk mitigation
In terms of financial reporting, accounts for all asset costs, acquisitions, depreciation rates, and other key numbers are kept. Enabling your business to almost instantly develop accurate financial statements.
Looking at your assets from a big picture perspective also shows where the risks lie within your operations, so you could proactively find solutions to avoid identified risks.
To sum it all up, getting your assets in order is a sure-fire way to increase your business’s efficiency, reduce costs, mitigate risks, and gain insight about your business that would empower you to grow and improve.