Top 6 reasons to invest in asset management system

Posted by AmandaTom on June 26th, 2015

Like most software, Asset Management System also offers a host of features and deliverables for your business. Following are the top 6 reasons why most businesses invest in asset management systems.

1. Asset Register, Asset Discovery or Asset Inventory
2. Controlling Costs Or Asset Accounting
3. Compliance
4. Asset Tracking
5. Maintenance
6. To Be More Profitable…

The most important reason is Asset Register, Asset Discovery or Asset Inventory. This is basically a list of simple asset facts. i.e. How many assets you have, where they are, who is using them and what the remaining asset life is. Off course, the information here is dynamic so good asset management systems are like eyes and ears of asset manager. An up-to-date list of your assets is fundamental for you and your asset management system to deliver on any other aspect of your requirements.

The next top reason to invest in asset management systems is controlling costs. This involves recording costs of entire asset cycle – purchase, usage (depreciation and maintenance) and disposal costs. A good asset management system uses the financial information to drive business decisions. For example; your asset software should be able to provide you with a report detailing current and future procurement requirements for each supplier. (This can also be viewed as future potential orders for each supplier) This will allow you to continuously get best prices from your suppliers.

The next reason is compliance. Asset management systems ensure that the assets are purchased, used, controlled and disposed as per government/industry driven compliance policies. (In many cases compliance is also driven by company’s internal policies) A good asset management system provides audit ready reports to ensure that any compliance related audits are addressed swiftly and efficiently.

Asset Tracking is related to asset register but has more depth to it. As you may be aware asset tracking not only involves tracking mobile assets but also listing assets by lifecycle stages. For example; assets to be procured, assets to be serviced, assets to be upgraded, assets to be rented so on and so forth. Most Asset Management Systems are good at tracking aspects but great Asset Management System provide relevant alerts, reporting and trends based on your historic tracking data.

Asset Maintenance particularly in asset intensive industries like aviation, mining, energy, telecommunications etc require significant attention because failure of assets can lead to significant business impact. Asset Management Systems with Maintenance features are designed to automate maintenance related tasks – scheduling maintenance, assigning engineers, work orders, time sheets, maintenance reports, bill of materials etc.

With the above information it is not a surprise that purchase decisions on asset management systems are signed-off by COO’s and CEO’s. Businesses focus on profitable avenues and that means you either be more efficient and save costs, or produce more with the same resources and be more profitable. Asset Management System helps you to do both. Needless to say, the core reason asset management software are bought is to ensure they help businesses to be more profitable.

Most companies invest in asset management systems to drive their profit, Is your asset management system helping you to be more profitable?