Getting the Best R.O.I. on Your Assets

Every business, large or small, has assets that help them perform their work, or deliver the services they provide, to their clients. These physical assets represent a significant monetary investment for even a small business. Curbing operating costs and maximizing asset productivity (asset management) is vital to achieve a greater return on your investment in assets.

Tracking assets

Having an accessible record of the details of individual assets is necessary in order to manage them. There are a number of asset tracking software solutions available specifically designed for the small and medium sized business owner, such as barcodes, radio frequency ID devices (RFID), wireless smart tags and GPS. They can track anything from a fleet vehicle to a computer. The database stores all the lifecycle details of any item such as its purchasing, leasing and invoicing details, physical location and, where relevant, which employee is in possession of it.

In trade occupations it’s not unusual for tradesmen to lose or damage tools and machinery on the job. Though each loss or repair may be small, the cumulative effect can be great. Asset tracking software adds an element of accountability, and encourages a greater degree of responsibility, in the use of company materials. Assets can be instantly located, eliminating wasted time spent searching for them, and unnecessary expenditures to replace supposedly lost items.

In managing equipment over its lifetime, owners and managers typically adopt a run-to-failure “strategy”. Often, they do not see the value in investing time and effort into a regular maintenance regime. Unplanned and reactive maintenance places a significant cost burden on businesses. Planning and management of asset maintenance increases the life cycle of the assets and keeps them performing at peak productivity levels.

Servicing manuals, pictures, warranty contracts, maintenance history and vendor contact details can all be attached to an asset’s record in the asset database. Providing one central location for the information can get a down machine up and running again, with minimum loss of time. This can be critical in potentially avoiding OSHA fines on top of reduced productivity.

Additionally, asset management software simplifies the process of developing a proactive system of asset management that incorporates real time logging of problems by operators, regular maintenance, and early replacement of failing components.

Improved management visibility into the location, use and performance of assets has enabled progressive businesses to shift from a short term, reactive model of asset management to a more strategic long term program that ensures they derive the maximum return on their investment in assets. A streamlined asset management system will reduce asset loss, operating costs and downtime so as to minimize total cost of asset ownership.