What is an Asset Management System?
Asset management is defined as the process for monitoring and tracking a company’s assets. These can include fixed and moveable assets. Effective asset management contributes to streamlined financial accounting, theft deterrence workflows, and preventive asset maintenance. This is vital to companies with multiple locations, employed service field workers, and other wide range asset situations.
To make the asset management process efficient and effective, some organizations adopt various asset management practices. Furthermore, advanced asset management software is being utilized to keep up with digitalization. Experienced companies slowly eradicate traditional asset management practices to comply with today’s standards and automate processes. Utilization of barcodes, mobile scanners, asset tags and the like are installed. Automation reduces manual labour and human errors.
The next section of the article talks about the common challenges faced in asset management. In addition, the characteristics of an up-to-date and comprehensive Asset Management System will be discussed as well.
Difference between Fixed Asset and Stock Inventory
A fixed asset represents durable equipment owned by a company. For instance, this includes machinery, computers, tools, and the like. For tracking and maintenance purposes, each of these assets has a unique barcode identifier.
On the other hand, a warehouse consumable stock inventory is tracked by a common stock item number or SKU identifier. This will be used for all products within a specific line. They can also be tracked by batch, lot, or by serial numbers then a specific batch.
Common Problems of a Traditional Asset Management System
Some companies delay the implementation of a comprehensive asset management system in their workflow. They tend to overlook the significance of investing in modern asset tracking practices. Here are some common challenges faced on a manual, traditional asset tracking and management.
Frequent Errors Due to Manual Data Entry
Nowadays, different advances have been made to digitalize and automate business operations. Every solution developed is custom made for small and big companies. Companies that overlook the need for an up-to-date and comprehensive asset management system are more prone to human errors. These documentation errors are usually from manual data entry. Furthermore, with employees getting overwhelmed on the amount of grunt work, having red flags and mistakes on every phase of the workflow is possible.
Difficulty in Course Correction and Error Tracking
As mentioned earlier, an organization’s asset tracking workflow is prone to human errors with manual asset tracking and documentation. As a result, tracking those errors manually is also difficult without an automated system. In addition, course correction will be delayed as it will take time to review the mistake manually. Finding the person accountable would be harder due to the lack of documentation.
Longer Hours Dedicated in Manual Labor
One of the major advances in today’s asset management system and practices is the automation of workflows. Mobile scanners, asset tags, and barcodes are utilized to make data capture and tracking easier. Without this, the employees are still subject to grunt work and manual labour. The time spent on tedious work can be directed to other important processes in the company. Instead, the employees are stuck with tiresome tasks that can be automated by investing in asset management upgrades.
Characteristics of an Effective Asset Management System Software
Effective and comprehensive asset management can help a company achieve greater visibility of their valuable assets. In addition to this, employing the right asset management system practices help uncover opportunities in improving production and increasing revenue. The characteristics and key benefits of a comprehensive asset management system are discussed below.
An Asset Management System software helps maximize a company’s asset value by optimizing asset usage, distribution, and maintenance. It provides an organization with a common system for collecting, coordinating, and updating asset data.
With a competent and reliable asset tracking system, your organization can continuously improve its operations by taking care of its high-valuable assets. Moreover, it can also identify underperforming assets and generate insights on how to improve them to further contribute to the overall health of the company.
Boost Asset Tracking and Management Efficiency
Investing in a comprehensive asset management system software increases input data accuracy. In addition, it also speeds up data capture – streamlining the task of documenting assets. Preventive maintenance schedules are taken care of with an effective asset management system. Larger asset visibility helps manage the complete lifecycle of purchase orders for an organization. Using GPS, RFID tags, and mobile scanners contribute to tracking assets in real-time. The occurrence of human errors decreases from few to none by automating the manual processes involved.
Up-to-Date Compliance Requirements
Asset governance can be improved with a proper asset management system. This includes delivery, installation, and licensing management. Since there is greater visibility of the assets, it will be easier to check each for compliance status. With digitalization and automation, smart features such as setting stock thresholds can also be integrated.
Generate Valuable Insights
By digitalizing the asset management system, valuable insights can be generated for better forecasting. Patterns can be easily identified for decision-making purposes. Moreover, this helps the management to map asset relationships between people, assets, and other configuration items. Comprehensive asset information can be captured and stored easily.
Enhance Employee Experience and Operations
Today’s asset management system software provides room for customization of workflows tailor-fit for employee or company preferences. Its modules can be utilized in setting company protocols as well. Eliminating grunt work and manual labour enhances employee experience. The utilization of modern devices to keep them connected also empowers employees.
In conclusion, an organization can keep tabs on maintenance per asset with asset tracking. Inadequate preventive maintenance might increase the cost of keeping assets and equipment running at optimal efficiency – which can force companies to make investments in new equipment that could have been avoided. In addition, lack of maintenance can also expose companies to violations of safety regulations and compliance requirements. Contact Qbasis to learn more about how keeping your asset management system up-to-date can be a valuable investment for your company.