This post will go through ten of the essential advantages of asset management.
10 Strategic Benefits of Asset Management and Asset Tracking Software
1. Reduce the Number of Customer Complaints
Customers are the lifeblood of your company, and they stand to benefit significantly from an effective asset management strategy. So it’s only natural to get directly to the point. Scott Cook, a co-founder of Intuit, once said:
“Instead of focusing on the competition, focus on the customer.”
Effective asset management will make your entire business function more smoothly, whether you’re in a warehouse, a construction yard, or an emergency room. And when you have a defined process in place for the care and usage of the tools you need to provide excellent customer service, the sky’s the limit.
2. Increase the Value of your Customers
Customers are more inclined to buy from you again if they aren’t grumbling. Furthermore, consumer loyalty is based on the experience of utilizing the product or service rather than the product or service itself. The net promoter score is founded on a single statistical premise: a 5% improvement in customer retention (i.e., repeat business) correlates to a stunning 25-95 percent gain in revenue.
Of course, the extent of this range is determined by the cost of your products and services, but you get the point. Increased customer value has significant downstream advantages for any firm, and effective asset accountability measures indeed lead to a better overall customer experience.
3. Understanding How to Make the Most of your Equipment will Help you Become more Efficient
Checks and balances are built into an asset management strategy to help you find areas where you may save money. Perhaps careful asset management has enabled you to “crack the code” on equipment use and reduce the cost of resource replacement.
Perhaps you’ve successfully educated your employees to return assets to a specific area so that the next person doesn’t waste time looking for the proper resource. If you’ve managed to accomplish this degree of organizational enlightenment without using asset tracking software, kudos to you, but we’ll get to that later.
4. Future Budgeting (and Decision-Making)
You’ll find it much easier to budget and plan for current and future operations as you improve organizational efficiency. Even a simple pen and paper solution, such as sign-in sheets for essential assets, allows you to track how and when they are deployed more effectively.
If you notice that your three widgets are continually being signed in and out, it’s a fair guess that you’ll need to secure more. On the other hand, if these same resources go hours or days between requests, you may have either too few or too many. And if you have too much of anything, you can sell it and put the money back into your company.
5. Ensure that Regulations and Accreditation’s are Followed
This benefit is split into two parts. To be honest, if you use asset tracking software, you’ll always have an easier job assuring (and confirming) compliance. In general, computers don’t lie; nevertheless, we’ll go over this in greater detail in the asset monitoring section below.
However, you can still demonstrate regulatory compliance in some situations by using an asset tracking spreadsheet, pen, paper, or other less-sophisticated ways of recording. In reality, our customers’ choice to enlist Link Labs to solve their asset tracking difficulties is frequently driven by compliance and accreditation maintenance.
Just make sure you’re following all of the rules. If you can get away with keeping things simple, go for it.
6. Upkeep of the Equipment
A history of asset maintenance is beneficial to many enterprises, from health care institutions to manufacturing operations. Many of them are, in fact, legally obligated to do so.
Factory and construction sites, for example, must assure employee safety, whereas hospitals must maintain the balance of life through properly working medical equipment. As a result, when it comes to maintaining the health and well-being of human capital, these industries are heavily regulated.
Aside from meeting regulatory criteria, documenting adequate equipment maintenance might also help you claim a warranty if calamity strikes.
7. Reduce the Loss
While most people automatically link “loss” with “stealing,” this isn’t always the case. Loss can occur under a variety of scenarios. Perhaps you have perishable goods or inventory that is about to expire, such as face masks or food.
If you don’t have a mechanism in place to rotate goods and resources at regular periods as part of your overall asset management policy, you’ll most likely have to eat some of the cost.
People also “lose items” from time to time. Humans are forgetful and flawed beings. We forget and misplace items, resulting in wasted time looking for them.
8. Theft Avoidance
People, on the other hand, genuinely steal things. Although inventory theft varies by industry, it is estimated to cost firms in the United States $50 billion per year. As a result, most of us who have worked in retail have been taught that making eye contact with consumers has been demonstrated to discourage theft.
The truth is that theft is virtually always motivated by a sense of opportunity. Even good dogs make mistakes from time to time. According to research, when the lights are turned off, our canine companions are four times more likely to steal food from their owners.
However, if people – or dogs – believe that someone is paying attention, they are less likely to take the risk. Having a defined asset management policy also gives you another way to keep track of significant assets.
9. Assets May be Found Quickly
Assume you own an airport with thousands of carts available for travelers to rent to transport their bags from their automobile to the baggage claim. Even though the carts are constantly in use, people leave them in the garage while airport staff hoards them to help carry other assets from terminal to terminal.
Each cart that goes missing results in a loss of rental revenue. You can locate those carts and put them into use utilizing digital twin technology, also known as asset tracking software. And products like the AirFinder SuperTag (now in beta) can help you find them both inside and outside the airport building.
10. Monitor the Condition of your Equipment Regularly
Monitoring the state of equipment and assets covers a wide range of occurrences, such as shock from falling off a cart or damage from excessively hot or cold conditions. Many firms require this information as part of their auditing processes. For blood warmers, hospitals must keep extremely accurate temperature data.
Perhaps you’re looking for early warning signs of failure, and you’ve noticed that a particular piece of equipment takes longer to accomplish a task. If you have asset tracking software, you may check its speed by documenting the exact length of time it is used over a given period.
To put it another way, you’d be able to continuously monitor equipment usage, allowing you to make repairs — or even replacements – before they’re needed.
So there you have it: ten reasons why asset management is beneficial. We hope this article has served to illuminate asset management’s full potential while also addressing the specific issue that has piqued your attention – whether it’s budget, compliance, loss, or something else entirely.