It can be daunting for personnel directly involved in floor operations to think about collecting and processing data, keeping track of loads of equipment, and then storing and analyzing that information.
This is where the significance of creating and deploying rock-solid asset inventory management systems arises.
So, in this article, we discuss the several aspects associated with asset inventory management, how it's different from inventory management, and the key features to look for before deploying an asset inventory management system.
Let's dig deeper.
An inventory depicts an extensive range of commodities, materials, items, and resources that are utilized in product manufacturing, along with the finished products the business intends to market.
There are different classifications of inventories. The most important ones are as follows:
Asset inventory entails the process of documenting and delivering prominent details on an organization's assets.
It can refer to a wide variety of assets, including tangible fixed assets like machinery and equipment, as well as intangible assets like IP and trademarks.
The process by which an organization manages its assets to monitor and analyze factors such as physical location, upkeep requirements, depreciation, efficiency, and the ultimate disposition of the asset is referred to as asset inventory management.
The accounting processes of every business must deploy reliable systems in place for managing the asset inventory it owns.
It aids in ensuring that the company has a clear grasp of its assets and that those assets are employed optimally and as cost-effectively as possible.
The terms "inventory management" and "asset inventory management" are often confused as synonymous. However, there are some key differences between the two.
The evaluation of what a firm possesses, such as its machinery and real estate, is the responsibility of asset inventory management.
Assets seldom get sold off by a company since they almost always remain in its possession.
On the other hand, inventory management is responsible for keeping tabs on the products that businesses either sell to end users or procure for themselves to utilize in manufacturing.
Even though a corporation could include its inventory in its total asset count, the value of this asset can vary on a weekly or monthly basis.
Since a corporation owns its assets, it will normally keep these goods in its possession for a longer period than the commodities that are taken into consideration by inventory management systems.
Inventory management processes assess the goods that a company owns for a brief period because the corporations intend to buy or sell them rapidly.
On the contrary, an item is considered an asset by a business if the company intends to keep ownership of it for a duration of typically one year or more. Employees who are responsible for asset inventory management monitor the item.
Only asset inventory management assesses an item's performance and how much it has depreciated over time.
Inventory management is done to keep tabs on where the items are located, how many of them there are, and how much they are worth.
An organization retains its assets for a longer time frame than it does for its inventory. Thus, the value of those assets, inclusive of any depreciation that may have occurred, has a significant impact on the organization's overall financial standing.
Choosing the appropriate system for managing the firm's asset inventory is a crucial step for any organization.
On the other hand, not all asset inventory systems are developed identically. The following are some of the most vital features that an asset inventory management system must have.
Comprehensive life cycle management delivers users an all-encompassing image of the company assets at any given time, which in turn, enables them to make preventative decisions regarding the upkeep of those assets.
The software solution used for asset inventory management should contain capabilities that allow tracking of a firm's assets across their whole life cycle, from when they are acquired until they are disposed of.
The management of assets cannot be accomplished sans asset tracking.
Asset tracking enables businesses to make timely, data-driven decisions, which in turn helps them save funds on excessive expenditures associated with replacement and maintenance.
The leading software solutions for managing assets will provide you with the capability to monitor the assets in real time, keeping the team fully informed about their whereabouts and state at all times.
Asset inventory management software keeps tabs on the assets and ensures they are well managed.
In this way, operators can plan preventative maintenance promptly, ensuring that the condition of the company's assets is always safeguarded.
The task status can be updated in real-time using an asset inventory management system's functionality for maintenance planning, task assignment, and labor tracking.
Facility managers routinely delegate asset maintenance chores to on-site people, be they paid employees or volunteers. Manually assigning tasks can be a time-consuming and laborious process.
Staff members can save a great deal of time and energy by delegating tasks to other field crew members or volunteers, thanks to a well-designed asset maintenance program feature available in some of the best systems.
The effort spent contemplating how an asset inventory management system can streamline the company's existing processes is well spent, especially if your firm owns, procures, and maintains high-value assets.
There are many different kinds of asset inventory systems available, so it's crucial to try out the top-rated ones to choose one that works for your business and provides genuine value for the investment.