5 Tips for Better Asset Management with Asset Tracking Software

Why is asset tracking software important?

An organized workplace is definitely more effective and productive than an unorganized one. However, many managers shy away from discussing their asset management strategies. In most cases, organizations have no clue about the number of assets that go missing every day or the financial losses that they incur due to mismanagement of assets. However, keeping track of each asset can be a daunting and time-consuming task. In fact in cases where the asset count is in the hundreds and thousands, it is impossible to manually track them all. Fortunately, asset tracking software is designed to automate asset management providing managers with a bird’s eye view on the status and needs of all their assets.

This blog details the top 5 tips for better asset management.

Define key metrics to improve

Before adopting any asset tracking software, it is important for organizations to define the key areas that they want to improve. If organizations are unclear about what they want to fix or what objectives they want to meet, then software or even magic itself will not be enough to achieve these non-existent goals. Goals for asset management can be as simple as wanting to reduce losses caused by asset theft or decrease purchase costs of inventory and other items. Asset management objectives may include a desire for smoother workflows by enabling greater access and visibility of assets or lower equipment downtime through better maintenance strategies. Whatever your objectives are, it is important to define them and then adopt an asset tracking software that will help you in achieving them.

Differentiate between all assets and their tracking needs

One of the most important things to decide before using an asset tracking software is which assets are important enough to be tracked. Once you’ve identified the types of assets that need tracking, it’s important to differentiate them according to their types and usage. Every organization has a mixture of expensive items that they keep strict checks on and inexpensive items that are used and consumed every day. Organizations need to be mindful of the fact that costs are inflated by oversight of both these items. In fact, the collective day to day costs of inexpensive items may exceed that of expensive items.

Asset tracking software allows you to separate your items into three different categories: assets, asset stock and inventory. Assets are those that can be reused and are tracked individually like laptops, printers, cameras or even heavy equipment like generators and drilling machines. Asset stock are those items that can be reused but do not need individual tracking, such as tables and chairs. Finally, inventory items are used and consumed every day, for example stationary and food items. The software allows you to track the stock levels of each inventory item, alerts you when inventory is low, and even lets you place orders to vendors directly from the system.

Run regular audits and reports on assets

In order to ensure effective asset management, you need to be able to keep track of some key performance indicators, that may include asset utilization, inventory turnover, and equipment performance. Using asset tracking software you can generate reports that give you a complete picture of the performance of your assets and equipment. For example, you can generate reports to identify which assets are being used and which ones are not needed, where there is a wastage and excess of inventory items and which equipment is acting up the most. Running regular reports on your assets is key to ensuring that you are meeting your asset management objectives and benefits.

With proper and regular insights on assets it is also easier to implement mechanisms to correct data inaccuracies. Conducting regular audits through the asset tracking software quickly identifies any missing assets that businesses may still be paying insurance or tax for. Regular audits and reports on assets also motivates employees to be more careful with assets checked out to them, thereby reducing the chances of theft and damage.

Keep tabs on when equipment needs to be retired

For projects that may take months or years to complete it is important to track the lifecycle of the equipment being used. Knowledge of when equipment was procured, how much it is used, how often it needs to be repaired and maintenance costs can help organizations decide when equipment needs to be decommissioned or replaced. Timely identification of unproductive equipment can save unnecessary maintenance costs and improve operational efficiency. Asset tracking software allows organizations to track the depreciation of equipment and also provides records of equipment maintenance costs and usage in order to identify which equipment needs retiring.

Adopt preventive maintenance strategies

Be proactive when it comes to monitoring the condition of equipment. Regular servicing and maintenance checks can avoid costly equipment downtime and reduce maintenance costs. Asset tracking software enables organizations to proactively manage their equipment maintenance. With the software, organizations can set up recurring alerts for regular maintenance of equipment. These maintenance schedules can be based on manufacturer guidelines on when equipment should be serviced or on information regarding previous equipment usage and condition. Additionally, asset tracking software enables organizations to integrate with other ticketing software to oversee equipment maintenance i.e. know who is responsible for the maintenance and when it’s due to be complete.

Conclusion

Better asset management can streamline office workflows, reduce costs and increase asset performance. However, in order for organizations to benefit from using asset tracking software, they need to first define their objectives. The next step is to catalog and categorize existing assets and decide which management strategy would work best for different types of items. Finally, organizations need to keep regular and consistent tabs on assets, equipment performance, and adopt preventive maintenance strategies.