Small businesses need to be laser-focused on profit margins and asset optimization can be a key factor in generating higher returns for them. Asset optimization enables businesses to maximize the performance, efficiency and uptime of their physical business assets.
This approach builds upon management strategies to improve asset utilization and streamline operations throughout the organization. It helps businesses create value and go beyond simple cost cutting techniques.
Deploying the use of a data analytics software, top performing businesses experience 15% reduction in downtime and 7% increase in quality. This is possible because cloud-based asset optimization takes a holistic approach and tracks assets throughout their lifecycle.
A cloud-based software enables effective asset management through various modules designed to automate workflows. It also helps remove blockages in productivity and achieve higher growth rates. A tracking software can help small businesses solve the following challenges:
- Buying the right type of assets: As a small enterprise, a large chunk of your revenue is spent in buying assets. Deciding what to buy and what to retire can be a tough decision especially while working with an on premise system. Use the businesses analytics generated by your asset management system to make smart procurement decisions.
- Lowering asset downtime: A haphazard maintenance schedule is a major roadblock when it comes to efficient asset management. This happens when you do not have the tools to automate, streamline and implement work orders and preventive maintenance.
- Tracking your costs: Without reliable data, businesses fail to calculate the total cost of assets in the system. This takes a toll on the management structure and you can end up losing hundreds or even thousands of dollars. An effective cost analysis approach enables you to address roadblocks and optimize workflows.
Implementing a Robust Asset Management System
The key to asset optimization lies in choosing the right management solution for your business. Your decision depends on the nature of your business and by extension the assets you need to manage. Once you have decided which option you want to pursue, the next step is to understand how it functions. Cloud-based management systems offer multiple features to run seamless operations. Let’s run through some ways businesses can optimize assets with the help of a management software:
Automated Asset Procurement
One of the first steps towards efficient asset utilization is maintaining a balanced stock. This means you neither overstock on high demand items nor struggle with shortages in peak seasons. The best way to tackle procurement hurdles is to automate inventory management. A cloud-based software enables you to set threshold levels for different types of items.
In addition to this, you can also track assets and consumables across different locations. For example, your bookshop has two branches located across the city and you want to check their inventory levels. You can simply log into the software and check stock availability for both stores.
Automated procurement helps free resources otherwise tied up in idle inventory. This eventually brings down costs and maintains higher profits for your small business.
Regular Depreciation Management
Accurate depreciation management is a critical aspect of asset valuation. Initially, companies record their assets at the cost value, but this figure declines over time.Depreciation tracking can be a challenge with a large volume of fixed assets owned by the business. In such situations, a cloud-based system offers a simple solution.
Whenever a business purchases an asset, the purchase date is entered into the system. The software then uses relevant metrics to calculate the depreciation rates over time. In addition to this, accurate depreciation rates let you estimate salvage value of assets before retiring them.
This way a business can recover costs over the useful life of an asset. Addressing depreciation concerns takes your business one step further towards asset optimization. Having a reliable system take care of depreciation enables you to file taxes on time and maximize savings along the way!
Streamlined Preventive Maintenance
Statistics show that around 80% of the facilities are unable to estimate their downtimes and end up losing 5%-20% of their productivity. You can overcome this challenge by installing a cloud-based tracking software with comprehensive maintenance modules.
An automated maintenance system enables you to schedule service tickets in advance. A proactive maintenance routine prevents unplanned downtime and ensures equipment reliability. Reactive maintenance is outdated and causes permanent damage in the long run. In contrast, preventive maintenance allows you to address issues in time and cut costs.
Preventive maintenance also ensures asset optimization with extended lifespan. Sort out your downtime issues with a cloud-based maintenance system to improve performance.
Read more: Maintenance Work Order Best Practices
Improved Employee Productivity and Accountability
Motivated employees play a significant role in boosting business performance and asset optimization. As a small business, you should invest in your employees so they can achieve higher levels of productivity. A highly effective way to do that is to run robust user management via your cloud-based asset tracing software.
Employees perform better when they have a focused approach towards tasks. An overflow of irrelevant information often causes team members to lose attention and stray off path. To address this concern, you can define user roles and allow restricted access to different departments.
With an automated system, everything is accounted for. Transparent workflows maintain accountability and improve employee performance.
Customized Performance Reports
Access to real time asset data enables you to pull up in depth analytics reports. A cloud-based management system can store detailed information regarding your assets. Having day to day data compiled up in a meaningful form is critical when it comes to devising growth plans. Especially as a small venture, you should always have a clear understanding of the revenue streams of the business.
Reports also keep you informed about the current value of assets which is beneficial when it comes to generating a cost benefit analysis. For example, running a revenue report can tell you whether to invest in a bigger oven for your bakery. Increasing revenue on baked items can be a green signal for an upgrade.
Select key metrics and correlate them to run actionable reports. Accurate data leads to better decision making and ultimately higher rate of return on investment.
Step Up Your Business Game: Switch to Automated Asset Management
Asset optimization can be a tedious process if your business struggles with management lapses. The best way forward is to automate workflows to achieve efficient results. Real-time data provides you access to asset information anytime,anywhere. This way you can always keep a track of costs and switch to improved business models.
Apart from asset management, a small business should also focus on building a strong team. This is important because a productive workforce can put the assets to their best use and yield high revenues. Once you identify key metrics, you can allocate problem areas to each of the teams. They can then run custom reports as per requirements and present viable solutions.
The key to asset optimization lies in a blend of robust management styles and team productivity. An automated system can help achieve the right balance and keep your assets in top shape always!
EZOfficeInventory is a leading asset tracking software. It allows you to track, maintain, and report on inventory from anywhere, at any time. We offer a free 15-day trial – no credit card required!