How Buying an Asset Management Software Saves You Money
Did you know that 30 % of companies are in a chaotic state of not knowing what assets they own, where they are located, and who is using them (Gartner, Inc.)? Many companies have hundreds, even thousands of assets scattered throughout different locations. Keeping the asset information up-to-date is a time-consuming, frustrating, and costly task.
Unless you have the right asset management software in place, of course.
A common misconception is that you can save money by using spreadsheets or pen and paper for asset management. Why pay for a software if you can manage assets for free?
When managing assets with pen and paper or spreadsheets you don’t really pay for the method itself. But, as we all know, time is money. The inefficiency of these methods slow you down and become costly in the long run. By contrast, a proper asset management software helps you save time and work efficiently in many ways, as explained below.
1. More time for productive work
An asset management software that keeps your assets’ information up-to-date can save you countless hours of unproductive work. Making phone calls, sending emails, and other activities related to searching for assets are subtle time thefts. Fifteen minutes here or there might not seem as much, but you can imagine what it adds up to, let’s say, over a year. With a proper asset management system in place, no time is wasted on chasing assets. Instead, you and your employees can concentrate on productive, billable work.
2. Benefits of a multi-user environment
Most asset management softwares allow employees at any level to access the software using their own user accounts. This way everyone always has the most up-to-date information at hand: employees can check current asset statuses and record transactions (such as checking assets in/out) with their mobile phones. This saves a lot of time and increases transparency across the whole organization.
3. Managing information on the go
Good asset management softwares come with a mobile application that makes managing asset information easy on the go. Being able to update information instantaneously on-site also reduces the chance of errors in the asset records. What’s more, you can import documents (calibration certifications etc.) into the asset management software and access them in seconds anywhere you are.
4. Utilization of asset tags
Labeling assets with asset tags helps build links between the physical assets and their information. Companies usually have multiple assets that look exactly the same, but still, the audit trail of each must be recorded individually. Scanning a tag on an asset with your mobile phone enables you to quickly access that asset’s information. This is a huge advantage if you compare it to searching information in paper lists or spreadsheets.
5. Investment decisions based on data
Having an asset management software provides you with a clear overview of your entire asset base. Knowing what assets you have, how they are being used, and in what condition they are allow you to make informed investment decisions. For example, you will avoid purchasing more assets than you need or renting equipment unnecessarily.
6. Reduced maintenance costs
A company can save between 12–18 % using preventive maintenance instead of reactive maintenance, according to Mintek. Still, companies spend 80 % of their time reacting to maintenance issues rather than proactively preventing them (eMaint). An asset management software allows you to easily optimize maintenance intervals, and it can send you reminders on upcoming due dates. What also reduces maintenance costs is that an asset management software motivates your employees to take better care of assets. How? Well, if you have to check a piece of equipment out under your own name, you might feel a bit more pressured to return it in the same condition.
7. Fewer lost assets
As pointed out in the beginning of this article, 30 % of companies do not know what they own. So how do they know if they lost something? Without complete asset records, they’re just guessing and hinge on their memory (“Did we have three or two of those?”). Cancelling work because of lacking equipment is a big waste of money and makes your customer unhappy. This can be avoided by using an asset management software, which enables increased asset availability and decreased downtime.
8. Better utilization of assets
If an asset’s status and location are unknown it can easily be forgotten. Idle assets are a waste of money and generate zero value to your company. An asset management software makes it easy to maximize utilization rates by helping you not only find assets faster but also schedule their usage more effectively.
It is safe to say an asset management software enables you to utilize many features you cannot achieve with spreadsheets, notebooks or handwritten lists. An asset management software lets your company stay competitive and helps you save a lot of time and money. Besides, it can improve your customer service and make your organization more transparent. Even though implementing an asset management software requires some investment, you will see a return on your investment in a relatively short period of time – in months rather than years.
Let us know if you have any questions!