The main challenges (and solutions) of asset management
Asset management is a broad term that refers to a variety of areas focused on managing a company’s assets, such as:
This process is also called asset management and asset planning. Asset management is also known as property management, logistics management, asset control, supply chain management, asset acquisition and logistics. In any business that has a lot of strengths, this is crucial.
Poor inventory management
Inventory management is abstract for most people. It is the science of tracking the quantity, variety, condition, location, and other details of a business’s inventory. An effective inventory management system is essential for profitability, product and service quality, and inventory control in today’s workplace. Inventory management is the process of being aware of your inventory and making adjustments as needed. However, it can also mean a list of vital equipment used in your business. Appropriate checks should be made for these companies, as some equipment can range from hundreds of dollars to hundreds of thousands of dollars.
Choosing the right method of inventory management can be difficult as it can involve many factors beyond the number of equipment in your inventory, such as where it is located at all times. To track and trace your machines, you need specific asset trackers that can stay with each item as it moves. This way you will be in a better position to see what it is for and you can ensure that your expensive investment is being used correctly. However, traditional versions of these devices are battery powered. If the team that uses the machine forgets to charge or change the batteries, it will leave you with an unnecessary brick. This is where a solar asset tracker comes in. It offers the same utility as conventional trackers, except you don’t have to worry about it running out of power. Solar power is a fantastic option for keeping them recharged as they tend to use a lot of energy. For example, better products will also provide vehicle telemetry and GPS-based real-time location data. These stocks consume a lot of energy, so having a set and forget is a huge benefit to any business using expensive vehicles.
Asset downtime is a term used to describe a situation where machines or people have their assets down. Asset downtime can be as simple as a machine not doing its job or it can mean a business has to go out of business. This could be disastrous for a business that is running at all times, and as such, it is vital to maintain the equipment so that it can operate as and when needed. Nonetheless, many businesses may not know when their investments are down or stuck, and anything that doesn’t work costs money. Therefore, to operate effectively, a business must monitor when an asset needs maintenance to get it back to service.
This problem can be resolved in several ways, most of which involve keeping records up to date.
Keep a centralized database
Being able to see what repairs have been made is essential for employees to keep equipment running efficiently. If they don’t know what was fixed or replaced, they won’t properly diagnose the problem.
Just like a centralized repair log, your employees should also be able to communicate with each other so that they can resolve a problem much faster.
Achieve greater responsibility
In other words, your employees need to know who is responsible for what. Since it is often expensive assets that are at stake, it is essential to delegate responsibility to specific team members to make decisions on the fly.
Replace or repair?
This is the age-old question, do you replace or repair a good which no longer works effectively. It might seem like an obvious choice, but things are more nuanced, as with anything that involves a lot of money. For example, it might seem like a good idea to just fix an old vehicle because it’s cheaper than buying a new one. However, you have to make a cost-benefit decision, because if the machines constantly fail, it will cost you not only spare parts, but also labor and lost time and productivity.
A simple solution to this problem is not possible, so the manager will have to analyze which is the most profitable solution.
Asset management has grown in importance as companies need to pay more attention to managing their assets. It is not possible to ignore the most valuable parts of the business, that is, the things that make the business run. Therefore, managers should start looking for new solutions to protect their investments.