Tips to Make Asset Management More Efficient

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Company assets can be both tangible and intangible and keeping track of them is often not easy. If you are selling them to customers, it can become even harder to keep close tabs on them because of the high volume you have going in and out. While there are plenty of challenges around owing business assets, there are ways to simplify the process using the right tips and tricks of the trade. Simplifying the process can make it easier and more efficient to run your organization.

Focus on Safety

Your fleet is arguably one of your business’s most important assets and as such, should be monitored closely. Since operating motor vehicles comes with its own level of risk, it is critical to make sure drivers are behaving in a safe manner while on the road. One way of protecting both drivers and vehicles form accidents is to use dash cams. That’s because dash cams let drivers see hazards on the road and quickly assess each situation, making the right decision in real-time. 

The fleet manager can use dash cams to detect inefficient routes that might cost the organization more money. Using your dash cams with your GPS software often offers a complete solution for efficient route planning. And it is easier to keep an eye on the driver through the use of dash cams. That is because it is easy to tell if the driver is taking part in risky behavior that goes against company policy and can result in damage to the vehicle or an accident.

Ensuring a Reliable Individual is in Charge of Assets

Depending on the size of your organization, you might want to appoint a specific person to be in charge of asset management. They can keep track of each item when you are busy taking care of other important aspects of managing your company. The individual should be someone you can rely on and trust to do the job right without needing to be closely monitored.

If you have a small organization, it might be enough to have just a couple of people in charge. However, larger organizations might want to appoint one person for each department. Alternatively, you could put a team in charge, with each member of the team focusing on certain items. You might have an IT specialist in charge of computers, phones, and related electronics. On the other hand, the fleet manager might be in charge of trucks, cars, and other company-owned vehicles.

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Consider Asset Life Cycles

The life cycle of each asset will depend on what type it is. A piece of equipment will have a much different life cycle than a computer and will require much different care. Ensure you are familiar with the entire life cycle; from the time you first acquire it to the time you get rid of it. Estimating the life cycle in this way allows you to make the wisest possible purchases. When the assets in question are ones that have to do with physical labor, this kind of management can go a long way in terms of keeping your employees safe on the job by ensuring the life cycle isn’t unfavorable. 

If you find that certain kinds of vehicles are more heavily used by your particular organization, you might opt to get a more durable one. Or you might look for computers that can be used for a longer time than the ones currently in the office. And you might find that employees who frequently travel for the company need to have their phones in a more durable case. Doing each of these things might require you to make a bigger investment upfront, but it means you will not need to make that investment for a longer time.

Regularly Tracking Assets

If you don’t keep good track of each item your business owns, you might be leaving your organization open to losses. You might inadvertently continue paying insurance, taxes, and other fees on items that have been lost, stolen, or just disposed of. Or you might be paying more taxes or insurance than the item is worth.

If you find you do not have enough assets to meet your company needs, you might be in for an unpleasant surprise as you find yourself scrambling to find appropriate items to meet your needs. By keeping track of what you have, you can regularly review equipment and machinery to determine if you might need to obtain more to meet your growing needs. As you scale your operations up, it becomes even more critical to keep track of the number and amount already owned by the company. 

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One way of keeping tabs on each item owned by the company is through the use of tracking tags. Consider assigning a unique number to each item and associating it with a barcode. They will help you easily identify each item. When each item has a serial number, you will be better able to report it as missing or stolen if the worst were to happen.

Understand Depreciation

No matter the asset type, it will likely depreciate over time, decreasing in value. You should know how much, on average, each one is depreciating. That way, you can keep track of those that are not suitable to use anymore. Otherwise, you may not realize when something is outdated and no longer functioning at peak but still being used. When employees are forced to use outdated equipment and machines, their work will be slowed down significantly. Tracking depreciation will help you determine when you have gotten your money’s worth out of a product and are ready to replace it.

Consider Automating Your Solutions

Managing everything manually can take more time than you have, and it can also be costly because often amount of effort it takes. Consider automating the process to optimize operations as much as possible. Using software to automate the process can make things smoother. You might find a solution with features such as depreciation tracking, management of contracts, value tracking, maintenance tracking, and the ability to generate more in-depth reports. Automating both complex and repetitive tasks allow you to boost effectiveness and efficiency, making your business more productive.