As the demand for more effective handling methods is burgeoning, asset management systems are gaining traction across industries. The asset management systems market is expected to grow at a CAGR of 10.3% from 2020 to 2025. Globally, industries have the realization to keep equipment downtime to a minimum for achieving efficient asset performance. These solutions allow firms to monitor their assets and use them rationally to eliminate unnecessary costs.
An asset management system officially records all the firm’s assets and keeps track of them, from their procurement to sale. These assets can be both fixed and current or tangible and intangible. An asset management system provides managers and stakeholders with all the information regarding an asset. This also allows them to calculate whether optimum utilization of an asset is taking place or not.
Incredibly, around 1.1 trillion dollars of working capital is tied up in inventory – that’s equivalent to 7% of the US GDP!
The inventory does make up a large part of the capital expenditure, and it’s critical for firms and businesses to streamline their asset management processes. Let’s discuss further.
Significance of a Good Asset Management System
#1 Helps Record the Whole Lifecycle of an Asset
A good asset management system can help efficiently maintain a record of the whole lifecycle of an asset. It tells a firm exactly where and how their assets are utilized and whether they are being put to optimum usage. This can help you allocate assets, accordingly, leading to higher returns.
#2 Deals with Ghost Assets
While manually recording assets, people can sometimes erroneously take note of obsolete or stolen assets. An asset management system removes any chance of such errors.
#3 Amortization Rates
Amortization refers to an accounting technique of writing off the value of a fixed asset or a loan over a period of years. In a way, amortization is somewhat like depreciation in the context of a fixed asset. An asset management system calculates amortization rates and helps a company maintain a consistent financial statement.
#4 Informed Decisions
The State of Small Business Report reveals that 43% of small businesses fail to track assets and inventory effectively. The transparency of an asset management system allows people to make informed decisions and thus take their business to greater heights.
#5 Measure Performance of Suppliers and Vendors
Asset management systems offer quick and smart access to vital information essential for completing tasks. For instance, a firm can easily track how a vendor or supplier is performing and whether their services are being utilized more efficiently or not.
#6 Optimum Utilization of an Asset
Reports suggest that 80% of the asset maintenance is reactive, while the right asset management should be proactive. To optimally utilize an asset, you can use asset management systems that can help maximize its usage by deploying it in a particular place. For example, you can track if a manufacturing unit is reaching its maximum usage or not.
Here’s What You Should Look for While Choosing an Asset Management System
Now, there’s a lot of great asset management software in the market. But when it comes to choosing one, you must be extra careful. You don’t want to end up with a system that is not built for your business. So, let’s look at some essential features to look for while picking an asset management system.
#1 Risk Mitigation
A major reason why many companies today use an asset management system is that it anticipates risk and helps them deal with it efficiently. Since the ownership of certain assets comes with its own risk, such as heavy machinery and equipment, vehicles, electronic appliances, etc., a firm must know when and in what form that risk will appear in order to tackle it without any loss.
#2 Scalability and Flexibility
A firm must know the scale at which it will be managing assets. Every firm has unique requirements, and no asset management system is a one-size-fits-all solution. If a firm must manage only a handful of assets, spending lots on asset management isn’t feasible, but if its asset portfolio is huge, it makes sense to simply invest in an asset management system customized to the firm’s requirements.
Apart from flexibility, a firm’s asset management system should be scalable enough to meet the future rise in the scale of production, growing demand, or changing customer preferences.
#3 Seamless Integration
A good asset management system seamlessly integrates with a firm’s ERP. Such integration allows for zero downtime and continuous data flow across the operational layers in a business.
#4 Process-oriented solutions
Firms must look for an asset management system with a streamlined process-oriented approach. It should follow a process in assessing assets, starting with considering what assets to maintain and in what order, and then deciding on what basis these decisions are being made. It must follow a predefined process to make it easy for managers to keep an eye on the system.
#5 Technical Support
Since asset management systems often employ advanced technology, managers should have good technical support to understand the deployment and handle the discrepancies arising during the operations.
There are many systems in the market, but none comes close to the efficiency provided by Bar Code India (BCI). BCI’s mobivue solutions seamlessly integrate with ERPs to offer businesses streamlined visibility of an asset’s movements. BCI’s asset management solutions help you have complete control over your assets from their acquisition to their allocation, replacement, and transfer.
Seamlessly track your assets in real-time using mobivue asset management system. For all your asset management related queries reach out to us at firstname.lastname@example.org. Our support team will get back to you at the earliest.
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If you want to know more about Best Asset Management System for Your Company, go through the case studies here.