Infotipsnews.com – An Effective Asset Management System: Purposes and How To Develop It. An effective asset management system will greatly affect the movement of the company. The asset management system itself is a series of processes carried out by the company to monitor and control its assets. What’s more, the majority of companies today rely heavily on asset management systems to record and obtain product information.
The system consists of tools, techniques and software that assist in achieving asset management policies and objectives. Managing assets properly will help maximize return on investment and avoid losses.
Assets are valuable items owned by a company or organization. So, through asset management, stakeholders can track the performance and condition of assets easily. In addition, they can also ensure that the assets owned are actually used efficiently according to their benefits.
Purposes of Asset Management System
In fact, the goals of today’s asset management systems vary greatly depending on the industry or type of business you own.
Regardless of the industry, asset management goals can be achieved through careful planning. Here are some common goals in asset management systems:
1. Identify and Eliminate Wasted Assets
An effective asset management system can help reduce company losses. The way it works is to quickly identify wasted assets across the supply chain and then eliminate them immediately.
Waste of assets itself refers to goods whose performance and value decrease over time because they have a limited life. Examples of wastage of assets are in the form of machine tools, computers, vehicles, and other assets that are vital to the company’s operations.
2. Increase Asset Utilization
The next benefit of proper asset management is that it can increase its utilization based on its condition. This plays a very important role in asset allocation, extending service life, and accelerating the company’s operational processes. That way, no assets will be wasted.
3. Maximize Return on Investment
Once the previous two objectives are achieved, an effective asset management system will generate maximum return on investment. This means that the company or organization can save costs that would otherwise be used to repair or repurchase assets.
How to Develop an Effective Asset Management System Plan
For some people managing assets isn’t as easy as the experts think. There must be some strategies you have to implement.
To implement asset management strategically, companies need to develop strategic plans, such as:
1. Completing Asset Inventory
The first thing to do in an asset management strategy is to count all the assets you own. If you don’t know your asset inventory, you certainly won’t be able to manage it effectively. In preparing your company’s asset inventory, you must include the total amount, location, value, and life cycle of the assets.
2. Calculating Life Cycle Cost
If you want to create a proper asset management plan, then the overall life cycle cost of each asset must be calculated. Many companies make the mistake of only calculating the initial cost of purchasing assets. Whereas, over the life cycle of an asset, there are bound to be additional costs for maintenance, maintenance or modeling.
3. Setting the Service Level
After calculating the total life cycle costs, you must next define the service level of the asset. You must describe the overall qualities, capacities and roles provided by the asset. That way, you can determine the operation, maintenance, and renewal activities needed for the assets you own.
4. Conducting Long Term Financial Planning
The process of an effective asset management system carried out by the company must be easily translated into long-term financial planning. With good and maximum financial planning, you can assess which goals are more worthy of priority.
Five Key Features of an Effective Asset Management System
Nowadays quite a lot of companies rely on asset management systems to record and find product information.
Regardless of the purpose and how to develop it, there are some key features that an asset management system should have.
1. Data Information
An asset management system must be efficient in informing members of erroneous or missing data. So you need to know about the status of the company’s asset items in detail.
In addition, the system must be tuned to keep informed of asset maintenance needs. If the software doesn’t seem to be able to do it, you don’t have to spend money to buy it. Most importantly, make sure the items purchased can be useful for displaying data information.
2. Automation
There is no efficient and effective asset management system that is done manually, everything is automated. This is also a form of utilizing technological developments that provide automation in the company’s asset management system.
Automation will be very helpful because it is able to send alerts to employees when assets are down level or maintenance is needed. When everything is automated, of course you can save more time and money. On the other hand, you and your company can increase your productivity for other things.
3. Asset Tracking and Reporting
In addition to informing the state of assets, asset management systems must have data tracking and reporting features. Tracking is very important in asset management methods because it involves product knowledge and location. Apart from that, it also helps you to find out who has used the asset.
Data tracking and reporting plays a role in ensuring the security of the asset management system used. While tracking an asset, the team will get a notification to generate a detailed report of the tracking results.
4. Compatible with Various Devices
The software used for an effective asset management system must be compatible to operate on all devices. Not only PCs or laptops, but also desktops, iPhones, and even Androids. Thus, it is likely that the effectiveness will be even better and not limited to certain devices.
Every team in the company, of course, uses different devices. If the selected software is not compatible with all devices, it will certainly prolong the performance of the team. In addition, this will also make it easier to track and update the system.
5. Exclusive Database
An efficient asset management system should have different databases depending on the category. So all the information should not be stored in one folder because it will make tracking more complicated. Choose a system that has a separate database to simplify tasks and increase effectiveness.
You need to rely on an effective asset management system to achieve the company’s vision and mission without the hassle. Hopefully the information above can help those of you who are confused about managing company assets.
