We all know that companies that tend to be lax about equipment management can suffer greatly, as it becomes difficult to keep track of thefts, stock levels, or storage costs. Interestingly, equipment management practices have undergone a rapid transformation over the years. Although a lot of companies used to manage their equipment using pen and paper, today they are looking for easier and more efficient methods of keeping track of these items, knowing who has custody over them, and creating efficient procurement and maintenance schedules. This is why a lot of businesses are now turning to software to solve these problems.
In this blog, we’ll explore why asset management is important for your business, and how to keep track of tools and equipment using a software solution.
Why Exercise Control Over Your Tool and Equipment Assets?
Whether you’re a small micro business or a massive conglomerate with thousands of employees, chances are you’re storing all your extra assets in storage rooms. A disorganized storage room can be a huge problem for your business! If employees have to wait a long time to be equipped with the right tools, it really doesn’t bode well for your productivity levels. Add to this the chance that you have the wrong items stored, or that you’re losing equipment to theft and misuse, and you’ve got yourself an asset management nightmare!
What you really need to focus on is figuring out how to keep track of tools and equipment quickly and easily. The answer, of course, is an equipment tracking software! This solution is a go-to for all kinds of industries, from hospitals to schools, and from governments to businesses. If you want to keep your storerooms organized and your workflows smooth, you really need to prioritize equipment management!
A robust cloud-based solution could easily help you understand how to keep track of tools and equipment at any time, from any place. The fact that all your data is stored on the cloud means that your users can collaborate on and co-manage asset data. Not just this, but you can stay on top of real-time updates, minimizing losses and virtually eliminating costs related to the replacement of lost assets!
Below, we’ll talk about some key ways an equipment tracking software can help you achieve this.
1. Insights into Equipment and Tool Related Activities
The insights provided by a tool and equipment tracking solution can be extremely beneficial to your business. It tracks data over time and this information lets managers identify patterns in tools and equipment usage. For instance, a procurement manager from the chemical industry might figure out that the order quantity of industrial refrigerators exceeds its usage. The manager can accordingly reduce the number of refrigerators that are ordered, decreasing procurement costs, and even lowering costs associated with storage, taxation, and maintenance!
Insights can be used by managers in a variety of ways to make the business run more efficiently and productively. Each equipment tends to have spare parts that are unique to that particular item.There are parts that are used frequently, and others that aren’t used at all. All managers need is a little analysis to figure out the minimum and maximum stock levels, criticality, and reorder points of those parts. If they are short in supply, they can be reordered quickly.
Of course, overstocking can lead to loss of tools through depreciation or exposure. A tool tracking software will let you stock only when it is the right time. As soon as you are running low on any of your tools, automated purchase orders are generated keeping your stock levels optimized at all times.
Read more: 4 Common Causes of Equipment Failure and Best Practices to Prevent It
2. Location Tracking and Item Transfer
In every business, valuable equipment is assigned to various employees and job sites. Having a system in place where everything is accounted for is the best thing you can possibly do for your business. This is because custodianship records can help lower the chances of your valuable tools and equipment going missing. Most system admins probably remember who has the larger pieces of equipment, but don’t forget that smaller tools are also a huge investment!
One of the most powerful features of equipment tracking software is tracking item locations. It makes use of real-time asset tracking in order to keep tabs on every piece of equipment that the business owns. Location transfers of assets have never been easier either. Instead of having to call up many locations before you get your hands on the tool or equipment you need, managers just have to look them up in their system, and voila! You can even create a work order regarding the transfer, ensuring everything about the move is documented and extremely easy to track.
3. Decreased Equipment Downtime
The bigger the company, the larger the number of tools and equipment it has. This means the chance of running into faulty equipment is also higher, but that’s just the nature of the beast. How long the equipment remains down is what differentiates an efficient business from an inefficient one. Quick repair is the food on which your organization survives and runs effectively. However, this can only take place if the parts required are available in stock. Many companies have to face the all-too-common problem of out of stock or misplaced parts or tools that are important to fix faulty equipment. This can lead to huge bottlenecks and slow down your productivity greatly.
An equipment tracking solution provides you with details of the spare parts or tools needed for your equipment and alerts you whenever stock levels are low. This considerably decreases equipment downtime. Effective equipment management basically means that your important tools and equipment are always there when you need them. You no longer have to keep a close eye on each and every piece of tool and equipment you possess. Therefore, your reorder point and current asset levels are well monitored when you know how to keep track of tools and equipment using the right software solution!
4. Better Budgeting and Planning
Managers can turn to data instead of turning equipment tracking into a continuous guessing game. Knowing the right time to order items is a major part of asset management that is not easy to master if you don’t have the data to make this happen. This particularly rings true for big purchases; a great procurement officer knows you should not buy either too late or too early. Managers can figure out the right time to replace certain equipment or tools simply by looking into the data provided by an equipment tracking system.
All the features already mentioned together result in better budgeting. Having a good understanding of the patterns of tool and equipment usage allows organizations to know what to prepare for, and prepare well in advance! This also lets companies know whether they can adjust an additional expense into their budget, allowing them to be a lot more flexible in the long-term.
Read more: How to Take Care of Business Equipment During the Slow Sales Season?
Learn How to Keep Track of Tools and Equipment with EZOfficeInventory
EZOfficeInventory can reduce your losses by holding your employees accountable for the tools and equipment they use. You can track every single item with an RFID, QR Code, or Barcode scanner, or even our very own mobile app! Moreover, you have the benefit of scheduling maintenance, calculating depreciation, and keeping a historical data trail on usage and tracking repairs. This can be invaluable when you’re trying to save money and streamline processes.
Our equipment management solution makes use of asset tags to keep track of the return and issue of tools to contractors and employees. It also lets you monitor the transfer of equipment between tool rooms and sites. You can gather information on all your valuable equipment faster than ever, and from anywhere in the world!
Read more: Cloud-Based Equipment Tracking Software vs On-Premise Tools
Companies are using our software regardless of their size to increase efficiency, accountability and staff productivity while minimizing risks and costs. Every item and tool can be assigned an ID number, making it easier to locate and track during work operations. This enables streamlined stock management practices. Get your hands on EZOfficeInventory and keep your business operations lean and profitable!
Learn More about How to Keep Track of Tools and Equipment Using EZOfficeInventory
EZOfficeInventory is the leading tool and equipment tracking software utilized by various industries around the world. Save money by tracking all your tools and equipment, and increasing your profit margins!
Learn more: EZOfficeInventory Case Studies: KAYAK – Equipment Management Software
