Equipment Inventory Software: Features And Best Practices Involved

Does it really matter how you use your equipment?

Equipment, whether big or small, is crucial to running the daily tasks of a business. It is the core resource of your organization. For this reason, it is important to keep your equipment inventory in good shape. Continuous upkeep of equipment lowers instances of machine downtime, enhances productivity, and ensures that you conclude your projects in time.

Equipment management is tricky! High ticket equipment inventory is one of the long term investments a company makes. Optimizing its usage can prove to be a huge boon for your business. It requires constant tracking, remodelling and servicing.

If you do not have a robust equipment management strategy in place, you may be prone to low returns and unforeseen equipment disposals. This won’t be a concern if you weed out the problems in managing your equipment inventory.

Common equipment inventory management challenges

Let’s uncover some of the common hurdles faced by companies pertaining to equipment management.

Integrating equipment data: Using manual and varied sources to collect data on your equipment may duplicate information. Lack of a centralized database also makes it tedious to sift through various data sources. For this reason, key details may even go missing.
Stock imbalance: Having adequate stock quantity is key to completing your projects in time. It is hard to pre-order the optimum stock quantity if you do not have a system to track usage patterns. Stock-outs can delay your projects and overstocking may tie up your money in unnecessary inventory.
Inaccurate data for regular equipment upkeep: Inaccurate data regarding equipment usage may lead to delayed repair sessions. This may take a toll on your projects.
Inadequate asset security: Businesses often have a hard time tracking where their equipment is at a given time. If not done vigilantly, this may lead to high chances of misplacement and theft.

The best way to overcome these challenges is to invest in a cloud based equipment inventory software solution. It offers you a single platform to manage your equipment, schedule repairs, and track locations.

Basic features of equipment inventory software

With equipment inventory software, you can locate your equipment wherever it may be, and optimize its usage. This helps you squeeze out those extra seconds to focus on more important business strategies.

For this reason, equipment inventory comes saddled with many features to help increase the efficiency of your equipment.

1. Asset check-ins and checkouts

Equipment inventory software allows you to design unique barcode labels for all the pieces of equipment you work with. You can use these labels to trace where a certain piece is and what is it being used for. Every time an employee needs to use an asset, scan the item label. The software will then pull up item details so you can check out the asset to the relevant employee.

Asset checkouts with equipment inventory software allow you to clock in asset identification numbers with employee IDs. You can revert to this data in case an item goes missing or you suspect fraudulent activities at your workplace.

Asset check-ins and checkouts via barcode scanners also pull down the possibility of human errors during data entry. Streamline your asset check-ins and checkouts to the T!

2. Procurement receipts

Most equipment purchases are costly and should be carefully deliberated on. It is important to document the usage history of your equipment to determine how much of a certain asset you need to buy. Carry out a need-based analysis and list down the tools you need to order.

Equipment inventory software delineates usage statistics of different items so you can tell when an asset is nearing maturity. Moreover, for high-demand goods, it is wise to set minimum threshold levels to order for the replenishment of stock.

Additionally, the system automatically generates procurement receipts and alerts your vendors when your stock reaches the threshold. With equipment inventory software, tackle procurement roadblocks and gain complete stock control.

3. Reservation calendar

Imagine you own a construction company which has a limited number of excavators in stock. To make sure you make the best use of these excavators, you need to reserve these for high priority projects beforehand. For this purpose, equipment inventory software offers a dashboard calendar so you get a complete overview of your equipment.

It shows which items are available at a certain time for use. The reservation module enables you to plan ahead and ensure conflict-free bookings of your assets. If you’ve checked out a forklift for repair, you can use the dashboard calendar to see when it is due for use.

This way, you can reschedule events hassle-free! Pre-planned reservations reduce the risk of last-minute cancellations and ensure seamless operations.

4. Depreciation management

An important component of equipment management is to track equipment depreciation over time. Keeping account of annual wear and tear of assets helps you maintain credible financial reports. It also lets you dispose of assets at the right time – before you end up investing thousands in the repair of deteriorating assets.

While tracking depreciation of each item manually can be tedious, a cloud based equipment inventory solution makes the process easier. It uses barcode labels to record the usage history for all assets – from the moment you purchase an item to the time you dispose it of.

The current status of a piece of equipment hints at how long it will last for. With accurate depreciation calculation, reap profits off of obsolete equipment by selling it at salvage value.

5. Location updates

Assets in the manufacturing, retail and distribution sectors are always on the move. Needless to say, many of these are expensive items and are at risk of misplacement or theft while they are shipped to the end consumers. An equipment inventory software solution helps track your assets while you deliver them to your customers.

Whenever you check out an asset for shipment, the equipment management system records the coordinates of an asset’s current location. Furthermore, location coordinates are automatically updated as your items move across different warehouses and customer locations.

The equipment inventory solution allows managers to oversee their equipment from a centralized office location. With a bird’s eye view of your assets, reduce the instances of theft and misplacement and cut down on overhead costs!

Maximize returns on your equipment with these best practices

Once you’re done selecting the right equipment inventory software for your business, you need to lay out certain best practices on how to use it.

Use the following tips to get the most out of your equipment inventory software.

1. Know what you have

Unless you have an accurate knowledge of what you have and what you need, you cannot devise robust equipment management strategies. In this pursuit, list all your current assets by their value, location and capacity. You can then update your equipment needs and specifications as your business evolves.

2. Carry out smarter procurement

It is not wise to invest in equipment that is rarely used. Get your procurement team to research company needs and market trends. Then, invest in tools that last longer and are used more frequently in the business workflow.

3. Use equipment data wisely

Collecting data regarding your equipment is just not enough. You need to know what to use it for. Use the information on equipment utilization to see if it is functioning correctly. In addition to this, highlight any weak links in your operational chain to see which area needs improvement.

Devise a plan: Know where you’re headed

Many businesses believe that investing in smart technology is enough to boost their ROIs. No technology can alleviate your pain if you don’t devise a well-planned equipment management strategy.

Thus, chalk out a thorough plan for the right application of equipment inventory software and educate your staff accordingly.