Why use asset tracking software?
If you are losing track of assets, inventory is running unexpectedly low and valuable equipment has gone MIA, then your asset management strategy has gone horribly wrong. Many businesses may choose to ignore their asset losses and charter forward without any organized way to address these potentially disastrous losses. It’s not just the vanishing items that businesses need to be worried about; what’s equally important is the misuse of a company’s assets. Rather than turning a blind eye to this potentially serious problem companies can adopt the right technology to minimize their losses. One of the best solutions out there is an efficient asset tracking software that affords businesses greater visibility and control over their assets and losses. Here is how the software helps you soften the blow caused by asset losses.
Where could it be?
Asset disappearances are common to all businesses. SMBs too are no stranger to the crippling losses caused by asset misuse, misplacement and theft. However, businesses are often unable to trace these lost items. Asset tracking software helps such businesses trace missing items back to their last known location and ownership.
Tracking asset usage, ownership and location increases asset visibility and allows businesses to have greater checks on their assets. Asset tracking software tracks each and every asset down to the very last nail and pencil used in your office. Having a transparent asset management system in place allows businesses and employees to be more diligent about their assets; protecting them from potential misuse, neglect or misplacement.
Who should I hold accountable?
Assigning ownership of assets issued out to employees is key to reducing the chances of asset abuse. Asset tracking software provides you with an easy way to issue equipment to employees. Employees can also be given the option to log in to the management system and verify which equipment is issued out to them. This transparent way of handling asset ownership makes the software perfect for increasing accountability and preventing asset losses.
What’s more is that asset tracking software allows you to request audits on all your assets. These audits can require items to be scanned in order to confirm the ownership and location of equipment. Monthly or yearly audits are a great way for businesses to stay on top of their equipment and identify any missing or lost items. Having such audits can greatly reduce any discrepancy between planned and actual inventory. This can help businesses save up to 30% of the budget allocated to assets. In fact, a report by Cohn Reznick stated that a food industry manufacturer could save $180,000 in a year by simply auditing its assets.
Read more: 5 Tips for Better Asset Management
How much have I lost?
Keeping records of inventory is crucial to understanding asset losses. Reports in asset tracking software provide extensive records on asset usage, ownership, availability and audits. This makes it easy for employees to know when an asset is being overused, kept in a checked out state unnecessarily or when it has gone missing. Additionally, these reports provide details of the cost and depreciation of valuable equipment. This enables you to easily identify lost items and the financial cost associated with them.
Reports also help identify any anomalies in inventory usage and asset procurement. Flagging up such asset anomalies helps pinpoint key areas of asset neglect, abuse and shortages.
What’s my recovery plan?
You might tell yourself that asset losses are a natural part of all businesses and accepting these losses is your best recourse. While asset losses are in many cases unavoidable, it does make sense for businesses to minimize the financial loss caused by such items. Asset tracking is an efficient way to calculate the financial loss of assets as it provides detailed records of the cost of an asset and its depreciation over time. Once such losses have been calculated it is easier to make insurance claims on valuable assets that have gone missing. Establishing cost of lost assets and the replacement cost of new (RCN) assets is necessary for claiming insurance. Financial insights gained through asset tracking software can also help businesses adopt better strategies to target problematic areas in their asset management system. For example having accurate records on inventory can help identify which assets are under insured, which assets are missing and still incurring insurance costs and which assets aren’t worth the insurance cost.
Additionally, asset tracking software helps flag up any ghost equipment that you might still be paying taxes for, thus preventing any future costs on items already lost. There is also the potential to recover any lost assets by adding QR code labels. Such labels can allow for public scanning that can help identify the ownership of lost items and alert you of their location. This makes it possible to return lost items or for businesses to locate them.
Asset disappearances can be a major blow to a business. Choosing to ignore such occurrences can only exacerbate the situation. Asset tracking software reduces your asset losses by tracking your assets and increasing accountability. Additionally, the software helps in identifying inconsistencies in asset usage and procurement. This allows you to narrow in on problem areas and develop an effective strategy to overcome them. The software also helps minimize the financial losses caused by asset disappearances by making it easier to claim insurance on lost equipment, physically recover such items and get compensation from responsible parties.
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