A company’s investments in assets is often measured against the profits that company makes. This Return on Fixed Assets (ROFA) is vital when used in conjunction with asset inventory management systems that measure the life-cycle it costs to produce material. Here is just a sample of ways asset management systems can help you today.
1. Track All Assets With An Asset Management System
In 2013, across the U.S. there were over ten-thousand instances of stolen assets. Yes, that was a long time ago (half a decade), but when stolen equipment surpasses $1B on an annual basis, time is no factor. Most of the time, sadly, the equipment was stolen by employees who took fixed assets as they pleased. Therefore, an automatic, computerized system in place designed to check-in and check-out fixed assets (phones, laptops, tablets, vehicles, etc.) keeps track—thanks to the usefulness of RFID chips—of that property. Libraries use such a system for their materials. This system logs the date the item was taken out, the name and barcode of the item, and what date that item is expected back.
2. Save Yourself Money
Asset management systems help you save money on maintenance. Assets, you’re aware, have operational phases. Keeping assets operational is vital to the ongoing success of your business.
Do any of these sounds familiar?
- You’re waiting for parts
- You’re on hold for information, instructions, et al
- You’re running from emergency to emergency
- You’re waiting for rental equipment
- You’re waiting for others to finish their job in the line
Maintenance costs can spike your budget through the roof. Anyone of the above unexpected costs can be prevented with an asset management system. How? Because these systems are designed to send alerts when places need to be replaced, re-ordered soon, re-stocked soon, etc. Production and manufacturing costs will be significantly reduced thanks to asset management indicators.
3. Ensures Proper/Efficient Use
When your organization and employees understand what assets are capable of, everyone can operate those assets the most effective and time-efficient way possible. Proper use of asset management saves you time, effort and allows your fixed assets to correctly be used – prolonging their life value.
4. Calculates Depreciation Accurately
Any product, material or item in your inventory that ceases to produce revenue has no use in your inventory. Tracking an asset’s depreciation depends on the type of depreciation method you use. Miscalculations are incredibly likely to result when the tracking system isn’t up to par. When this happens, one of two things happens: you pay it for the mistakes through insurance or taxes for a long time.
Asset management systems are specifically designed for you to store all the vital information you need – so that asset depreciation (and salvage value) may be calculated properly. Therefore, keeping an item or product in your inventory that produces no sales or revenues ends up biting your wallet.
5. Allows For Mobile And Cloud Computing
Peter Middleton estimated that the number of smartphones, tablets, and PCs will reach 7.3 billion units. In 2014, 96% of businesses use wireless tech. That was then – this is now… and what’s happening now is the Cloud. The Cloud — an Internet-based storage system server—is here to stay. Quite luckily, too, as the Cloud is expected to replace conventional computers when it comes to scanning/syncing with centralized asset databases in real-time. (In fact, some would argue that mobile is mandatory for small business growth.) You and your employees can communicate with each other more effectively and instantaneously.
The manual way of tracking fixed assets (pen and paper, spreadsheets, etc.) are done. There is no need to use “dinosaur” tracking methods when automated asset management provide a smoother, more calculated (and correct) and time-saving way.
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