The world is undergoing a change. As the 2020s draw near, evolving measuring and analysis methods help businesses to make more accurate decisions. Businesses that harness data in decision-making in all areas thrive. Others will fall behind.
Fixed asset management is no exception. Advanced companies are already collecting accurate measuring data of their assets and utilising it to gain distance on their competitors.
One great example is the Finnish National Opera and Ballet. It has thousands of square meters worth of equipment in storage. With this equipment, it produces about 25 productions per year on its main stage alone.
The Finnish National Opera and Ballet collects comprehensive data about its equipment and equipment usage. This helps it to ensure that the equipment is available and in good condition and it is effectively used. The transportations between warehouses and the Opera house are also tracked. Every piece of gathered information supports planning, of course. As a result, The Finnish National Opera and Ballet is able to do better decisions.
I’m guessing that also you want to be more efficient than your competitors. In order to help you, I will give you three reasons why asset tracking is important. All the reasons include related tips so that you too can make asset management a competitive advantage for your business.
1. Better Investment Decisions
Investments can be decisive for the entire existence of a business. Successful investments take businesses towards success, whereas failed or poorly timed investments may cause businesses to fail.
In order to make well-founded investment decisions, you need accurate asset data. A modern fixed asset management system allows you to bring all asset-related data together to support investment decisions.
What data should you gather? Key data include the degree of equipment utilisation, equipment productivity, information on maintenances and maintenance costs. It is also important to know the actual service life, which often differs from the book write-off period of the equipment. Investment planning based on facts creates a solid foundation for the efficient use of your company’s equipment.
2. Higher Degree of Equipment Utilisation Rate
You have acquired the equipment to use it. Equipment that lies in storage produces nothing. The efficient use of equipment requires you to track equipment reservation volumes and to know where the equipment is and how it is used.
Transparency is the key to improved equipment utilisation rate. When everyone has access to asset information, it is also easier for them to put the required assets to good use. Valuable equipment will be left unused, if personnel does not even know that it exists.
Tracking the asset usage is imperative. Accurate data on asset reservations tells what equipment is actually used in your business and what is not. Too often investment decisions are based on gut feeling. If the reservation data shows that a certain item isn’t used, there is no need to replace it. This allows you to spend appropriations on the acquisition of more productive equipment.
One way to maximise your equipment utilisation rate is to share parts of your equipment with your partner businesses. This allows you to make up for any equipment that you are missing with the partner’s equipment. And your unused equipment will start to yield revenue as you rent it out to partner businesses.
But, this is only possible with an advanced fixed asset management system that enables asset sharing. Otherwise, the danger is that one’s own assets will be confused with the partners’ and lost.
3. Equipment Stays in Working Condition
A crucial part of comprehensive asset data is data about equipment maintenances. This means knowing what maintenances have been conducted and are needed. Proactive maintenance planning allows you to guarantee that recurring maintenances are carried out.
It is important to track the equipment maintenances. The first reason for this is that the lifecycle of unmaintained assets will fall short. Second, the degree of production will be lower for unmaintained equipment than that of maintained assets. Third, well-functioning equipment improves job satisfaction and even safety.
You might have experienced broken equipment from time to time. How easy is it to report these defects to those responsible? Investing in a system that allows easy defect reports is beneficial. The reason for this is that when a defect is noticed, those responsible should be notified immediately. As a result, they can begin repairs without delay, so that downtime can be kept to a minimum.
Some equipment also involves legal obligations concerning regular maintenance or inspections. Proactive maintenance planning allows you to guarantee that statutory maintenance is carried out and the interruptions in use remain short. This will also improve occupational safety. Remember to keep the history log of the equipment maintenances safely stored and available. With an accessible maintenance log, you can show the authorities that you have appropriately fulfilled your statutory maintenance obligations.
Precise fixed asset management will provide you with rich data about your assets. It will help you to get the full benefit of your equipment and make better investment decisions.
Nowadays, you can no longer afford to spread asset data throughout the organisation in numerous Excel files or slips of paper. Let alone relying on individuals’ memory. Asset data should be transparent to the entire organisation so that data flows efficiently. This, in turn, helps you to better understand the kind of equipment that you actually have. And what you need.
In order to gather accurate asset data, you’ll need a modern asset management system. The greatest benefit of a fixed asset management system is that it gathers the critical asset information in one place. With a comprehensive view of rich asset information, you’ll be able to make better decisions than before.
Do you want to see how a modern fixed asset management system produces data and helps with decision-making in practice? Contact us!