Successful and efficient management of assets, whether tangible or intangible, is essential for the growth and smooth running of a business. As businesses grow, they need to adopt technology to streamline business processes. This can include allocation, maintenance, and replacement of assets. The use of good asset management software helps a business in allocating the right assets to the right location at the right time.
5 Tips to Improve Asset Management
The main purpose of an asset management system is to boost productivity and reduce inefficiencies. Let us look at some ways to improve the asset management systems of your organization.
#1 – Appoint an Asset Manager
Managing assets can be a full-time job. To ensure the better management of the assets of your business, assign a person or a team for the same. This will help you focus on other aspects of running and growing the business.
#2 – Maintain Inventory of all Assets
Create a list of all the assets owned by your company-whether tangible and intangible. Do not forget to include the ones that are not in use or in storage. This will help in the proper and timely allocation of different assets to various tasks besides planning future purchases.
#3 – Keep Track of Asset Life Cycles
A highly useful way to boost asset management is to keep track of the life cycles of all the assets from their purchase till their disposal. This will help you know how long an asset can be used and when you need to send it for repair or replace it. This will also help you to plan your inventory better and place orders for new purchases.
#4 – Understand Asset Depreciation
The value of all assets goes down with time due to the introduction of newer models or regular usage and the associated wear and tear. Continuing to use assets that no longer add value or are obsolete can hurt your company’s productivity. So, it is important to keep track of all your assets and their depreciation to replace them on time.
#5 – Automate Your Asset Management
Managing assets manually can be a costly affair besides involving the possibility of human error. To avoid such a situation and boost the efficiency of your asset management systems, go for an asset management software. The use of an automated system not only saves a lot of time and effort but also reduces the chances of errors. Automation of processes like tracking inventory, depreciation tracking, contract management, cost analysis followed by in-depth report generation will boost the efficiency and productivity of your business.
These tips will help you improve the efficiency of and streamline the whole process of asset management including:
- Asset acquisition, procurement, commissioning & management of supplier contracts, and payments
- Deployment of various assets to different departments and locations
- Maintenance which must also include ways to conduct failure analysis to decide on the retirement and replacement of various types of assets
Key takeaway:
The use of an asset management software based on advanced technologies like artificial intelligence and analytics aids in increased productivity levels while reducing the chances of errors.
