Asset management is critical to the success of any business or organization.
A proper asset management framework lets you track where all your company’s assets are deployed. You also get to monitor the operational efficiency and maintenance cost of each asset.
However, the old-school approach to asset management no longer cuts it. That’s especially if your business relies on multiple asset outputs.
Not only is tracking your organization’s assets manually painstakingly tedious. Manual spreadsheets are also prone to human errors, which may have far-reaching implications. The only better alternative is integrating a robust asset management tool into your company.
Below are the top nine reasons every business should implement asset management software.
- Provides Unhindered Access to Asset Records
Every business, regardless of its scale, has several assets to manage. These range from equipment and inventories to bank balances, digital programs, and employees.
Asset management software provides real-time access to all your assets. Whether it’s machinery in the production line or a data repository on cloud storage, you can quickly locate and analyze the asset.
Knowing where your assets are deployed can be instrumental in enhancing asset maintenance management and optimizing their output.
- Supports Preventive Maintenance
Preventive maintenance procedures are a central pillar of every successful organization. These interventions proactively avert operational downtimes caused by machine breakdowns or systems failures.
However, it’s challenging to monitor every asset manually and determine whether it requires maintenance. That’s where asset management software comes in.
By letting you track each asset in real time, asset management tools make it remarkably easy to schedule preventive maintenance.
- Minimizes Human Error
Digital databases have an incredibly high accuracy score.
Unless an error occurs during the initial data entry stages or a significant cybersecurity breach happens, the records will remain consistent for years. That’s in contrast to manual records, often prone to inconsistencies.
Upgrading to asset management software can reduce human error during data entry and retrieval. Most of these programs are designed to flag inconsistencies in their databases, such as double or incomplete entries.
- Improves Data Security
Besides flagging irregularities in data repositories, asset management software can also sound alarm bells upon detecting a potential cybersecurity breach. That’s an outstanding benefit, considering the rising incidences of cyber-attacks.
Many asset management tools trawl your company’s databases to unearth suspicious activities. They then provide timely reports on the nature of the threat, allowing you to stop hackers in their tracks.
Even if a breach has occurred, you can still rely on an asset management tool to determine the value of lost or compromised assets. This can be key in assessing the extent of the damage.
- Prevents Inventory Theft
Businesses in the United States lose up to $50 billion in inventory theft annually. While these losses are largely attributed to random, opportunistic thieves, inside jobs also account for a significant portion.
Now, you cannot manage your employees around the clock. Even the most ubiquitous CCTV cameras may not capture a meticulously orchestrated heist. Your best bet is to integrate asset management solutions into your business.
Having robust asset management policies can effectively deter overambitious thieves within or outside your organization.
- Eliminates Ghost Assets
Ghost assets are untraceable assets that still appear in your inventory register, either due to erroneous entries or because the asset no longer exists.
Having multiple ghost assets can create an inaccurate picture of your company’s net worth. Therefore, it’s important to determine their location and possibly rectify their entries or expunge them from your databases.
Using an asset management tool, you can quickly identify ghost assets and take the necessary steps to correct the errors.
- Tracking Asset Ownership Cost
Many companies own assets they no longer use but aren’t ready to dispose of yet. Unfortunately, the value of most assets depreciates over time.
Using an asset management tool, you can determine whether your decades-old machine is still worth holding on to by assessing its ownership cost vis-à-vis its strategic significance.
For instance, is the equipment too bulky to move around? Does it suddenly require frequent repairs? More importantly, what would the cost implications of replacing the machine be?
- Enhancing Customer Value
Asset management software ensures every business process runs smoothly.
These programs can be deployed in manufacturing plants to analyze production output, warehouse facilities to manage inventories, and online platforms to track digital assets.
Asset management tools improve efficiency wherever used, reducing customer complaints. Fewer complaints translate to more loyal customers.
- Fostering Regulatory Compliance
Having an effective asset management framework can help achieve various regulatory compliance, depending on your industry and jurisdiction.
For instance, the IRS requires all businesses to maintain verifiable records regarding their assets. Those include data pertaining to equipment or inventory purchase price, discounts, depreciation rates, etc.
Moreover, the FASB recently reviewed its asset leasing guidelines. The surest way to achieve full compliance in the ever-evolving asset management landscape is to upgrade from manual records to smart asset management software.
Wrap Up
Evidently, there are countless benefits to enjoy by integrating asset management software into your business operations. Remember to tread cautiously before incorporating these programs into your company’s systems.
Analyze each software program critically to determine its suitability for your asset management needs. Online reviews might also provide useful insights into an asset management tool’s efficacy.
