Asset Management System: What is Asset Management?

Overview

  • What is an Asset Management System?
  • Common Problems of a Traditional Asset Management System
  • Characteristics of an Effective Asset Management System Software

What is an Asset Management System?

Asset management defines as the process of monitoring and tracking a company’s assets. These include fixing moveable assets. An effective AMS or asset management system 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 ranges of asset situations.

To make the AMS process efficient and effective, some organizations adopt various of its practices. Furthermore, businesses must utilise and advance their AMS software to keep up with digitalization.

Experienced companies slowly eradicate traditional asset management practices to comply with today’s standards and automate processes. Utilization in installing barcodes, mobile scanners, asset tags and the like. Automation reduces manual labour and human errors.

The next section of this article talks about the common challenges that the system faces and its up-to-date comprehensive characteristics.

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, you can track warehouse consumable stock inventories through a common stock item number or SKU identifier and by using this for all specific product lines, you will be able to track by batch, lot, or serial numbers rather than tracking individually.

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.

Below are the common challenges of using traditional AMS.

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 AMS are more prone to human errors. These documentation errors are usually from manual data entry. Furthermore, with employees getting overwhelmed by the amount of grunt work, having red flags and mistakes in 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 to Manual Labor

One of the major advances in today’s AMS and its practices is the automation of workflows. Utilising mobile scanners, asset tags, and barcodes make data capture and tracking easier. Without this, the employees are still subject to grunt work and manual labour. Instead of spending time on tedious work and employees stuck with tiresome tasks, upgrading to AMS automates tasks that workers to do other important tasks.

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 to improve productivity and increase revenue.

An Asset Management System software helps maximize a company’s asset value by optimizing asset usage, distribution, and maintenance. It provides an organised 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 contributes 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 digitalising 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.

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