All too often asset management is seen as a pesky administrative task that adds little benefit to an organisation’s day-to-day operations. Yet, performed correctly, it can improve operational efficiency, reduce costs and even boost the bottom line…
Fixed Asset management can be a bit like flossing your teeth. Everyone knows it’s important, but few give it the attention it deserves. While large companies have access to sophisticated tools to assist with the task, small and mid-sized organisations often rely on manual, paper-based methods to get the job done.
As a result, many are creating unnecessary administrative overheads and often have no clear picture of exactly what they have in place. Indeed, industry research has found that, when a company reaches $2 million in annual revenues, it is likely to have around $50,000 in lost or ghost assets.
In many cases the asset management challenge is being brought to a head by the rising complexity of modern business operations. Increasing use of technology, new channels to market and multiple supply chains mean the number of assets within an organisation continues to rise.
Many are realising the methods used in the past can no longer get the job done.
Achieving better asset management
Surprisingly, many organisations do not have a clear picture of all the assets they own. There might be equipment scattered across multiple sites, portable devices assigned to employees, and items that have been lost or misplaced over time. The first step in improving this situation is to conduct a full audit of all items the organisation owns.