At the end of the day, businesses are all about maximizing efficiency to boost profits while keeping expenses and losses as low as possible. For that to happen, one of the most important things that companies must do is maintain proper records for all their assets. Not only does this boost efficiency, but it also reduces losses stemming from asset theft and reactive maintenance.
In this post, we will share six practical tips that will improve asset management in your firm.
1. Identify Your Company’s Assets
The first step towards proper asset management is creating a comprehensive inventory of all your equipment. This may sound too obvious, but you’d be surprised at the number of expensive equipment that business owners buy and forget about.
Therefore, start the process by taking a record of your assets, both tangible and non-tangible.
Aside from the assets themselves, take a record of their value, the people who operate them, and where they are used.
2. Determine The Project Life Cycle
While recording your company’s assets, it’s crucial to take down the life cycle of each item. Different pieces of equipment have different lifespans and maintenance needs. Having an idea of how long a piece of equipment will last helps you anticipate future expenses.
It should also give you an idea of the maintenance required to keep the asset in a working condition. This prevents breakdowns and downtimes that could lose your company revenue.
3. Keep Track Of Asset Depreciation
The performance of your assets is bound to suffer over time. This usually happens towards the end of the asset’s estimated lifespan, but it may also occur much earlier if the equipment is overused or misused. Asset depreciation can also happen faster if the equipment in question is of poor or average quality.
Keeping track of performance depreciation is crucial because it directly impacts the productivity of your workforce. It also negatively affects the quality of the products coming from your company, putting your revenue and reputation at risk.
Every business must keep track of the performance of its assets. This should be done through routine checks and working closely with the employees who operate the equipment daily.
4. Designate An Asset Manager
Hiring a full-time asset manager may be a good idea, depending on the size of your company or the number of assets. If you are running an extensive plant with equipment worth millions, a full team headed by an asset manager is an investment you have to make. They’ll streamline the entire process allowing you and the employees to focus on other relevant duties.
If you are running a small business, appoint a responsible and trustworthy person to keep the inventory.
5. Digitize Your Asset Management
Manual asset tracking techniques are time-consuming and can be very expensive. The worst part is that they leave so many loopholes for theft, downtimes, and other issues.
Therefore, there is only one way to manage business assets efficiently, and this is through digital systems. As the experts at https://crm.webfletch.co.uk/ report, automated systems are much easier to use than spreadsheets, word processors, and hectic manual data entries. They smoothen the management process, enhance the company’s operations, and increase client satisfaction.
That being said, your business can only benefit from an automated system if you get the perfect software for your needs.
There are many asset management software on the market. Some are specialized to manage specific types of assets, while others are more versatile. Below are some items you need to consider when choosing an AMS:
- Set your objectives and expectations - What do you expect from the software?
- Compatibility with your current tech - Can the software be integrated with the tech used in your company? This is crucial in smoothening the asset management process.
- User reviews - What do other users of the product have to say about the performance of the AMS? Is it reliable? Search online platforms for recent user reviews on the software you are interested in.
- Price - Shop around for a good deal, but it should not come at the expense of reliable performance.
Ideally, you should get a free demo to try out the software before investing in it.
6. Update Your Inventory Regularly
Experts recommend updating your asset inventory quarterly. Adjust the records to reflect the new assets bought and the wear and tear of existing equipment.
Assent management helps you get the best value out of your expensive equipment. It also directly reduces unnecessary expenses and improves employee productivity. Hopefully, the above tips will help you track your equipment better and get the ROI you deserve.