Poor asset management: Effect on business bottom line
Due to the latest innovations in technology, the number of assets acquired by various institutions is constantly on the rise. Even after an alarming increase in the inventory size, asset visibility still poses a challenge for most companies. While struggling with this issue, organizations find it hard to identify and track their assets. This can have serious consequences including but limited to:
A low rate of return: The ability to track assets determines your chances to achieve a better rate of return on your capital investment. If you record equipment performance, you are more likely to improve productivity and efficiency.
Misuse of resources: When you are unable to monitor asset movements, you end up under-utilizing your capital. Unsupervised inventory stock makes it difficult for employees to carry out their daily tasks, because of difficulty in locating certain tools.
Costs incurred by ghost assets: Unused or broken assets can be a burden on your budget. This is common when you don’t dispose of old equipment on time. If you still record idle assets in your financial portfolio, costs are bound to build up. Learn more
According to a study by Gartner, it was further found out that companies which fail to track their hardware are more likely to damage their bottom line. It was also stated that poor management techniques result in below average asset performance, which ultimately takes a toll on business growth. Such failures tend to increase costs by up to 10%. Sounds problematic, doesn’t it? You can tackle this problem through a simple solution.
Asset tracking software lets you streamline management processes for maximum returns. Learn how you can achieve this for your business below:
1. Monitor current asset usage for refined performance
As a business, you invest in numerous tool and machines which help you attain your objectives. The key to success is a constant improvement in management processes. No matter how trivial a task may seem, there is always a way to achieve a better outcome. When you improvise and learn from your mistakes you tend to perform well and maximize returns. Similarly, if you track all assets in your inventory, you will be able to devise effective administration practices to boost utilization.
With the help of asset tracking software, you can create histories for all your equipment. Through this, you will be able to keep a record of asset utilization over various time periods. Availability of comprehensive data through the software enables you to examine your weaknesses, and implement the required changes in asset management programs. Learning to get the best out of your inventory lets you conduct efficient work operations which tend to increase productivity.
Read more: Bolstering the security of your business assets through asset tracking tool
2. Utilize complementary goods together to boost impact Â
Oftentimes, it happens that one or more items in your inventory are used together. Why is this so? This is simply because a routine task requires simultaneous usage of particular assets. Such items should be stored at the same place to ensure seamless work operations. Say, for instance, you have printing papers and printers in your office. It only makes it convenient to keep them both at the same desk. This way whenever an employee wants to print something, both items can be easily located and used quickly. If you were to store papers at a different place than printers, it would create unnecessary hassle trying to find one of the two.
You can easily create bundles and packages for your tools with online asset tracking software. With your experience in the field, you can judge which products tend to perform better when used together. Doing this, will not only help you stay organized but will enable you to improve asset utilization as well.
3. Enable lifecycle management for your asset base
Inventory control is a complex process as it involves supervising various tasks related to business assets. Every tool has particular specifications which require individual attention. If you try to implement a similar management routine for all assets, you will end up facing some serious consequences. So, in order to boost each and every asset’s performance, it is mandatory that you track all the items in your inventory.
A simple way to do this is to deploy lifecycle management for your equipment. You can use this feature through asset management software. Doing this, allows you to maintain end-to-end asset records. You can keep a tab on purchase orders, maintenance routines, vendor details and much more. All this information can be stored in a single place and accessed whenever need be. Accurate asset details let you carry out daily activities flawlessly. When your equipment is acquired and maintained on time, it is bound to function better!
Read more: Manage asset assignments effortlessly with small business asset tracking system
4. Manage stock efficiently for seamless daily operations
The rules of stock management are pretty straightforward; replenish on time to avoid inventory shortages. While this may sound very simple, companies still struggle with this concept. At a certain time, it seems very feasible to buy bulk stock for your business. This can come in handy if you buy just the right amount and cut down on costs. But if you buy more than what can be used in the next 6 months, then your stock is likely to negatively impact your bottom line.
For starters, you would have to stock up on the extra amount in your warehouse. Idle assets have a higher chance of being stolen and lost. The best approach to stock management is to set minimum thresholds and buy only when you are about to run out. This way you can avoid shortages and at the same time not suffer from overstock externalities. Cloud-based asset tracking software lets you maintain optimized stock levels so that you get the maximum returns on your assets!
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EZOfficeInventory is an efficient and easy-to-use asset tracking tool, used by various companies and small businesses globally. It helps them practice seamless tool management and increase workplace efficiency.
For more assistance, drop us an email at support@ezo.io.
