How An Asset Management Software Can Enhance Asset Productivity?

• By Lindsey Walker
• 31-03-2023
• Software

For giant organizations, asset management is generally quite an overwhelming task. This is especially the case if these organizations house multiple fleets of equipment. For such organizations, the optimal functioning of their equipment is critical. In such scenarios, asset management software helps enhance asset productivity. The software records all important information and equips the management with valuable insights about their assets. This ensures optimal usage of assets and other allocated resources and also aids the management in making well-informed decisions. Let us better understand the benefits of a CMMS for better asset management.

What Is Asset Management Software?

A business uses an asset management system to organize and control all of its assets. These resources may be material or immaterial. These could be people, properties, equipment, stock, money, and anything else crucial to the day-to-day operation of the company.

Benefits of an Asset Management Software

1. Comprehensive Asset Tracking

The most important reason why asset tracking software is so popular is that it provides detailed information about the asset. This includes all details related to Asset Registering, Discovery and Inventory. It also comprises facts such as the number of assets owned, how they are being utilized, by whom, their current life expectancy etc. And as you already know, an up-to-date list of your assets is fundamental to an organization, as it enables better decision-making and on-time delivery.

2. Cost Transparency

A computerized maintenance management system will record all information related to an asset's purchase costs, maintenance costs, frequency of servicing, recurring costs, and so on. This is a very important feature as it helps you better analyze the asset output, which in turn influences all future purchase decisions, downtime scheduling, and asset retirement. Right from the value after depreciation to the ROI received, you have all the information at your fingertips. Pro Tip: You can use the entire asset accounting information to strengthen your relationship with your customers by providing them with comprehensive proof in case of unforeseen expenses or delays. This adds to the credibility of your business and leads to more satisfied customers.

3. Asset Tracking

There are two aspects to asset tracking; physical location tracking and overall asset health tracking. Both are equally important because they help management chart appropriate work schedule. This leads to a suitable allocation of resources. Users can schedule all maintenance activities, allot servicing budgets and even reserve budgets for unforeseen expenses based on asset history. This is especially helpful for companies with a large number of assets as they cannot physically track every piece of equipment. So instead, the CMMS will notify them in case of any anomalies. This helps initiate timely and required action, without facing any significant downtime.

4. Proactive License Compliance

Using Asset Management Software makes it easier to comply with pre-defined external as well as internal compliance policies. The regularly generated detailed reports assure that the assets are purchased, used, controlled and disposed of as per government/industry-driven compliance policies.

5. Pre-planned Maintenance Activities

Maintaining assets has multiple benefits. It increases the asset life ensuring optimal performance and ensures adherence to all safety compliance policies. Management is required to strictly monitor maintenance activities, as a failure of assets can significantly impact the business. Asset management systems are designed to automate all maintenance-related tasks. So that the management can identify the varying levels of support required for each asset and allocate resources accordingly, resulting in best-reduced downtime.

6. Increase Overall Profitability

The asset management software regularly tracks and creates comprehensive reports. This enables quick analysis of such reports to determine future requirements. These reports analyze and provide insight into asset productivity better, and also how it affects overall production. It helps foresee unplanned expenses too.

Besides the above-described benefits, your asset management system can also help you better allocate funds, manpower and other resources. This eventually helps you build an efficient strategy for your business, making it a more profitable enterprise!

7. Higher Personal and Process Safety

Better safety is achieved through effective asset management and well-executed preventative maintenance.

When assets are managed well, they reveal a company's concern for both its workers and the assets in its possession.

The results are as follows:

• It is simpler to demonstrate adherence to safety regulations.
• It is more efficient to train.
• Any operator, outside repair team, or manager has access to the manufacturer's recommendations and operator manuals at all times.
• Scheduling preventive maintenance is simpler.
• Fixed asset tracking's continuous monitoring can warn operators of potential damage or hazardous circumstances.
• There is a chance for quick communication among coworkers.
• Asset monitoring makes risk control much simpler, especially for businesses that use specialized equipment for extensive fieldwork.

8. Workforce Becomes More Accountable

Employee accountability is significantly increased through asset tracking. As a result, theft, unintentional misplacements, and the location of equipment that isn't in use will quickly decline.

Each of these advantages leads to higher production.

When a business effectively prevents theft, it saves money because inventory and assets don't need to be replaced.

Here are a few more advantages of this investment:

When tags are connected to assets, workers tend to treat them with more care, and operators may check the status of the asset while handing them over from shift to shift.

GPS monitoring aids law enforcement and internal security personnel in locating a stolen item.

Items occasionally disappear as a result of honest misplacing them or even natural calamities. These things can be promptly located thanks to GPS monitoring, saving time and money spent on searching for them and lowering insurance rates.

Even if something hasn't been taken, the damage could have happened. Asset tracking will show which visitor, independent contractor, or employee handled it most recently.

The organization can still gather useful information, such as when the item was last in excellent repair or whether unusual behaviors or noises may have served as warning indicators, even if the previous "holder" was not to blame for the damage.

Any of these can aid a business in avoiding downtime brought on by theft or malfunctions.

7 Tips that will increase productivity with asset management System:

#Tip 1: Abolish Spreadsheet usage

The first and most crucial asset management advice is to stop using spreadsheets. Small businesses with minimal assets may be able to track them using outdated and conventional ways. Unfortunately, it won't be helpful for medium- and large-sized businesses.

You might wonder why.

Because spreadsheet utilization is done manually, there is a greater potential for error, which could lead to the loss or misplacement of assets.
For instance, if numerous employees use the spreadsheet and input data about the same asset, there is a potential that the data may be mixed up and the asset tracking process will be ineffective.

As a result, the spreadsheet method for tracking assets is not error-free; rather, it is prone to mistakes. Overall productivity suffers as a result. As a result, this method is inefficient, especially when several assets need to be tracked.

#Tip 2: Implement Asset Management Software

Use asset tracking software in your company in place of manual tracking. In addition to being precise, it will lessen the likelihood of asset loss & misplacement.

In addition to these advantages, it will aid you in developing wiser business decisions. It can also help you accomplish your long-term goals and ambitions. Most importantly, it can lower operating and maintenance costs dramatically and raise compliance.

The most important piece of advice for expanding a business is this one. Because it has the potential to completely alter how your organization operates and operates.

#Tip 3: Understand Asset Life Cycle

Knowing an asset's life cycle is crucial for the business. Find out how long you can use your assets effectively.

From the point of purchase till disposal, it is beneficial. For instance, a building has many expensive components that need to be maintained, including the elevator and furniture.

The assets are managed by the facility manager. Sometimes they need to be replaced, and the asset manager is in charge of doing that. Yet, frequent maintenance and repair can extend the useful life and efficiency of an asset.

#Tip 4: Utilize Re-order Level

One of the most crucial assets is regarded to be inventory. Business is undoubtedly impacted by a lack of inventory, particularly during the busiest season.

Maintaining the proper volume of stock in the appropriate location is so essential in business. Inventory management is crucial for keeping the proper supplies, but it's also useful for preventing overstock.

The most fundamental elements are knowing when and how to reorder, and which warehouse site needs reordering, but most people struggle to put this knowledge into practice. When the inventory falls below the "specified re-order level," the asset management software will alert the accountable party.

#Tip 5: Track Assets Regularly & Systematically

Lack of routine asset tracking might have an impact on the bottom line of the business. Your business might be charged for unneeded assets.

It might also cover costs for upkeep, taxes, and insurance. Taxes on already-depreciated assets are another possibility.

Asset monitoring is crucial when you have promised to deliver to a client by a certain date but are unable to do so because the necessary assets are not available to finish the work order.

It affects the reputation of your business. Therefore, it is crucial to do asset tracking regularly and to maintain correct records of each item.

#Tip 6: When an asset needs to be disposed of or retired

Finding inefficient assets can save a lot of money for corporations. Everyone is aware that every asset has a finite lifespan. Depending on how the asset is used, it can be 2 or 20 years, depending on the asset.

Some inquiries regarding asset life include the following:

How frequently is the asset used, for instance? alternatively, How frequently does an asset need maintenance? alternatively, How often is the asset used? or even: How much does routine maintenance cost?

These kinds of details are necessary to determine if the asset should be donated, sold, or retired.

#Tip 7: Eliminate Ghost Asset

Ghost assets are either missing or stolen items or items that are mentioned in your records but are not present. Though they are not addressed in the novels, Ghost Assets are actually present.

They both have an impact on taxation and were caused by ineffective asset management practices.

Why is a concern with ghost assets?

Because you are paying taxes on a resource you are not using.

When a work order comes in, even though you have a different asset to complete the task, you realize that you are missing the one that was most effective for the job.

Why is a concern with ghost assets?

You will be able to spot phantom assets if you regularly do physical audits.

How do you get rid of all of your ghost assets?

You will be able to spot ghost assets and zombie assets if you regularly audit your physical assets.

Conclusion

Asset management software is a valuable tool that can enhance asset productivity in a variety of ways. By providing real-time data and analytics, tracking the entire lifecycle of an asset, and automating many processes, asset management software can help companies make more informed decisions, reduce downtime, and increase overall efficiency.

In addition to these benefits, asset management software can also improve collaboration between teams and streamline communication. With all data and information stored in one place, it becomes easier to share information and work together to solve problems. Furthermore, asset management software can help companies stay compliant with regulations and prevent asset-related accidents by identifying potential risks and hazards.

Overall, the implementation of asset management software is a smart investment for any company looking to improve its asset productivity. It allows for better asset management, reduces maintenance costs, and helps companies make more informed decisions. With the constant advancements in technology and the increasing need for efficiency, asset management software will continue to play an essential role in the management of assets across various industries. As such, companies should prioritize the adoption of asset management software and invest in solutions that best fit their needs to ensure long-term success and growth.