Imagine handling thousands of assets every day without a reliable tracking system. You are unable to locate your assets, identify the custodians and know if they are available for use or not. This can be quite frustrating!
Manually tracking critical assets using spreadsheets can be time consuming, increasing the risk of human error. There could be instances of miscounts and theft, slowing down business operations.
For example, Global Preparatory Academy (GPA) – a dual-language Spanish charter school – reports having difficulties in recording inventory data using Excel sheets.
This blog will help you understand how you can choose and use an asset management system to automate operational processes.
What is an asset management system?
Asset management system is typically defined as a strategic tool used by businesses to record and track assets. It serves as an asset repository to record information pertaining to assets, such as their location, availability status, quantity, and owner. It enables users to perform various actions, like checking in/ checking out, reserving and maintaining assets.
Aimed at improving business productivity, asset management systems allow businesses to keep track of their assets across multiple locations. This way users always know where, how and in what condition business assets are being used.
Reportedly, the market for asset management systems is likely to reach $25.5 billion in 2036 from $4.56 billion in 2023 – with a whopping CAGR of 14%. This highlights a growing trend toward adoption of faster technologies to achieve better asset control – typically SaaS based asset management solutions.
How to choose an asset management system
Businesses have the option of choosing from a variety of platforms to streamline their workflows. However, the decision is not an easy one! It depends on a myriad of factors, and needs to be based on a critical analysis of a business’s asset ecosystem, and assessment of business needs.
Let’s talk about some of the most important aspects a business must consider when choosing an asset management system:
1. Business objectives
Understanding business’s short-term and long-term goals enables managers to choose the most viable system that aligns with their business needs. This includes assessing what modules or features they need in the system to meet the operational requirements. They also need to assess their business’s asset management principles to see if the system helps achieve them or not. The system must come equipped with the capabilities that are directed toward achieving the principles in the longer run.
For instance, a business expanding rapidly would require complete visibility into location data to better analyse where and in what quantity assets are located. So, before choosing a system, businesses need to consider the number of assets, operational intricacies, and the type of data they want to track.
Some primary objectives businesses look forward to achieving using an asset management system include enhanced asset visibility, reduced tracking time, and improved customer response time. When analyzing different available options, businesses can look for features that help achieve these objectives.
With time, business goals and operations change, so a system that adapts to the changing business model would be the most suitable. Ideally, some system features should be customizable to cater to these changes.
2. Budget
Payment plans for various asset management systems depend on the features that the system offers and/or the number of assets that your business tracks using the system. Asset managers can determine whether the payment structure for an asset management system is flexible, affordable and scalable, and includes the necessary features.
Different asset management systems charge based on several factors, such as the number of assets, the add-ons/integrations used, the number of team members, the number of locations and more.
Considering these factors, a business can calculate the estimated cost of using an asset management solution and compare it with their budget. Assessing the budget and comparing costs helps businesses choose the best system while allocating the finances smartly.
3. Business preferences
The choice for a system also depends on business structure and preferences. Most businesses prefer cloud-based systems as compared to in-house ones as they are more flexible and allow employees to access the system even while they are working remotely.
According to a survey of 2400 companies, almost 65% of SMBs increased their usage of cloud services in 2020 while 86% experienced an increase in 2021.
Most asset management solutions are cloud-based. They are relatively less expensive than in-house systems and allow several users to collaborate through one centralized system. Users can work on the same account and update asset information collectively – saving overall time and effort.
Determining the system type helps asset managers ensure that the system they opt for is in accordance with their structure and budget. For example, a cloud-based system will be more beneficial if the business is spread in various locations and data needs to be easily accessible, despite the location.
4. Security capabilities
Businesses store highly confidential and sensitive information on their asset management system that could be vulnerable to attacks or theft. Running regular security checks and employing robust security measures are vital to protect asset data against malicious cyber attacks.
Asset management systems that provide security features like OTPs, password protection, and Single Sign-On (SSO) provide a greater level of protection and help maintain the integrity of data. This way, only authorized personnel can access the system and make required changes to the data when required. Certain users can be provided restricted access to the system with approvals enabled to limit unnecessary user activity – adding another level of security.
Benefits of using an asset management platform
Successful business operations depend on strategic asset management, budget management, and asset compliance. With fast-paced operations, businesses need to use strategic tools that help optimize critical business processes – such as improving resource allocation – and a robust asset management solution does just that!
For instance, Global Preparatory Academy was able to efficiently track assets and reduce equipment loss by almost 80% using asset management solution.
Some benefits of using an asset management solution include:
1. Seamless asset tracking
Businesses can use an asset management system to implement smooth asset tracking, asset monitoring and maintenance processes. Such a system enables users to track the location, condition and custodian of assets from a centralized hub. By recording information, like asset name, identification number, model number, procurement date, and depreciation, on the system, asset managers can develop a better visibility of their assets.
An asset management system simplifies complex workflows for businesses by enabling streamlined asset monitoring – this way, they can understand their asset needs better. Assessing the needs on time and tracking assets encourage managers to meet project deadlines.
Likewise, they can implement a well-strategized asset management plan when they know where assets are being used and are needed the most.
2. Enhanced location management
Businesses operating on a larger scale typically have assets spread out across various locations. These need to be tracked closely to avoid misallocation and misplacement. To achieve this, asset managers can simply check and update an asset’s location in real-time through location tracking – eliminating the need to maintain extensive manual records. Businesses can specify the location of existing assets and add new locations in case of expansion.
Users can also track the live location of their assets with enhanced GPS tracking capabilities. They can get live updates about the location of assets; especially, when high-value items are in transit to avoid any mishaps.
Employing effective cloud-based systems for these purposes helps businesses minimize the instances of asset theft and loss, and allocate assets better.
3. Smooth auditing
With an asset manager has a centralized hub for storing asset data and can easily see the number of assets they have, the locations they are in, and their value, they will be better prepared for audits. Asset auditing enables managers to make smarter decisions pertaining to asset use and ensure that all assets are accounted for in the books. This is vital to maintain transparency while conducting a physical verification of the assets.
Managers can conduct on-the-spot audits, whenever required, and assess the financial standing of their assets. They can flag underused or underperforming assets, and identify ghost assets. With objective verification of assets, they can ensure that the finances allocated to asset use are being properly spent where needed.
These factors combined help businesses stay compliant to industry-specific rules and regulations and better adapt to the changing dynamics of their industry.
4. Timely reporting
A fully equipped asset management system enables users to generate in-depth reports to get a clearer picture of a business’s asset landscape. The ability to create reports enables users to consolidate essential asset information into easily digestible information. Reports help bring information together from various modules in an asset management system to view and analyze complex data easily.
Users can also stay updated with live updates about assets through alerts. Everytime an action is conducted on an asset, the user can be notified to keep them in the loop. This way, stakeholders can rely on accurate and up-to-date data to guide their choices, minimizing risks and optimizing outcomes.
Steps to efficiently using an asset management system
Businesses always look for solutions that are robust yet powerful and intuitive. A well-functioning asset management system is essentially the driving force behind sustainable operations. It not only enhances productivity but eases up the process of handling everyday asset-related tasks better.
Let’s give you an overview of how modern asset management systems function:
Step 1: Centralize information
The core selling point of an asset management solution is its ability to consolidate data through a well-functioning asset register. The register serves as an asset database that includes asset details.
Without a database, asset managers face hurdles in quickly accessing asset-specific information. This also limits their ability to conduct various actions, such as checking in or checking out an asset, reserving it, or sending it for service. It also increases the risk of asset theft and loss – severely impacting ROI.
A database serves as a “single source of truth”. Managers are able to eliminate discrepancies that could arise as a result of information existing in silos. They can categorize information based on its type, so the module displays data specific to its functionality. This greatly helps managers swiftly retrieve critical data rather than sifting through fragmented pieces of information.
Step 2: Implement role-based access control
Asset management solutions allow role-based access i.e.managers can assign permissions to conduct certain actions based on user role. Employees can be categorized in groups that represent a particular department or perform certain roles. These roles can then be assigned permissions to access certain asset information.
By restricting system access to roles, managers are able to secure the system, protect data, and ensure privacy. Implementing access controls facilitates smooth operations as users are able to view only relevant data on their accounts – mitigating the risk of unauthorized access and internal threats.
The functionality is especially useful for large businesses that have multiple departments. For example, multiple teams might be working on one project which can create confusion regarding asset allocation and utilization. With access controls, teams will only be able to access asset data pertaining to their role and requirements, making it easier to sift through information.
Step 3: Track asset history
In the realm of asset management, tracking asset history can be used strategically for a range of purposes – from optimizing asset use to ensuring regulatory compliance. An asset management system automatically records an action taken on an asset so it can be referred to in the future if needed.
Asset managers can consult the asset history to identify performance patterns, such as its peak performance period, maintenance trends, and downtimes. With this in-depth analysis, managers can identify the most relevant strategy to optimize asset life-cycle and performance.
For enhanced asset lifecycle management, managers can record asset history to capture all the stages an asset goes through from acquisition to disposal. This allows them to record depreciation over time and analyze how well an asset has been performing.
For example, if an asset is sent for frequent repairs then a maintenance manager can cross-check its history and decide if it needs replacement, refurbishment, or upgrades.
Step 4: Monitor performance
An asset management system allows users to generate custom reports and understand financial metrics on their customized dashboards. Some major metrics that managers can use include frequency of checkins/checkouts, assets in reservation, available assets, and asset utilization. These metrics provide managers real-time insights into assets, their physical state, and locations, so they can make data-driven decisions.
Additionally, asset managers can analyze these metrics thoroughly with reports that can be customized to suit the needs of each stakeholder.
For example, the site manager of a construction business can generate a report to check the availability of cranes at a particular site. They can also calculate the total number of cranes reserved or checked out along with the associated costs. This report can be forwarded to the other workers on site to understand the project’s needs so the on-going operations can be executed smoothly.
Step 5: Access information on-the-go
A modern a asset management system comes with mobile applications that enable remote asset management. Diverse teams can better collaborate while also maintaining an eye over asset updates.
Users can leverage barcode scanning to enter and update asset information. A mobile app provides easy accessibility to asset details, such as location, owner, checkout/checkin dates, and current status. This way users do not need to carry laptops or heavy technological equipment to access their asset database – saving time and effort.
In addition to this, mobile applications can also provide a snapshot of performance metrics – for example, the number of checked-out items, pending reservations, or the assets assigned to a user.
If an operations manager needs to check the most recent number of inventory items available, they can access this information while in the warehouse. They can also cross-check items through barcode management to make sure that there are no ghost assets.
Simple tips for asset managers to improve asset management
While asset management can be simplified using efficient asset management tools, it is advisable for asset managers to carefully handle complex assets. Here are a few best practices that asset managers can follow to strategically manage assets:
1. Tag assets
Choose from barcodes, QR codes and RFID tags to tag your assets. Create customizable tags and implement barcode asset tracking based on your business needs to avoid losing track of high-value, critical assets.
2. Track depreciation
Record the value of your assets before and after depreciation to guide smarter decisions regarding procurement and disposal. Automatically calculate asset depreciation to reflect the exact value of your expenses.
3. Optimize stock levels
Set maximum and minimum asset thresholds to optimally organize inventory. Keep count of your inventory at all times to ensure you never run out of essential inventory items and have enough backup for unexpected situations.
4. Maintain assets
Schedule regular maintenance sessions for your assets to avoid overuse. Ensure your assets function in the most optimal condition and mitigate the chances of unexpected breakdowns.
5. Audit regularly
Conduct regular asset audits to cross-check the physical count of your assets with the actual count. Assess and maintain the accuracy of records to stay compliant and achieve transparency.
Asset management system for streamlined workflows
Asset management systems make asset handling easy and intuitive – significantly reducing disorganization.
Choosing the right asset management system to meet your business’s asset management needs is essential to maintain the quality of operations. Overall, the asset management solution you opt for should be able to provide a centralized platform for information, improve asset tracking, and help you monitor performance.
Choose the most optimal solution today and see a visible growth in your productivity!
