Managing assets is a complex process that can seem daunting. However, there are steps businesses can take to optimize the process and reduce headaches along the way. When it comes to asset management, many organizations are reactive instead of proactive. This leads to spending a disproportionate amount of time on reactive work to fix problems that could’ve been prevented in the first place. Here are six ways you can optimize your asset management process for improved efficiency, increased ROI and better employee accountability.
1. Think Strategically With Your Asset Management Process Strategy Team
Optimizing your asset management process is a complex task that isn’t easily completed overnight. You’ll need the cooperation and collaboration of your entire asset management team to get the job done.
If you don’t already have an asset management team, look for individuals in your company who are familiar with asset and contract management. A large company may have an entire dedicated team, while a small company could name a single project management head.
In any case, your employees will play a critical role in defining your asset management processes and identifying areas for improvement. You can expect to work with your asset management team regularly to evaluate and rethink strategies as needed.
2. Establish a Consistent Asset Review Schedule
Managing assets properly relies on keeping an accurate inventory list of all business assets. One of the first steps on the road to asset optimization is taking a full inventory of your company’s assets. “Assets” is another way of referring to what your company owns and can include everything from machinery to tools. Depending on your company, you may have assets like:
You should review your company’s assets regularly to ensure you have the most up-to-date information on asset availability and status. This is also a good time to conduct a cost analysis to review areas where your business can either reduce spending or improve ROI by better utilizing underused assets.
Conducting a full asset review can help you answer important questions like:
- What is the location and status of each asset?
- What is the repair and maintenance history of all your assets?
- Where is each asset in its life cycle?
- Out of all assets recorded, which are falling short of ideal operating efficiency?
- What are the next steps for improving ROI through asset optimization?
3. Use a Life Cycle-Based Approach
Many assets have a finite life cycle with opportunities to optimize asset management every step of the way. Start by defining each stage your assets go through, from manufacturing to maintenance needs and beyond. Asset life cycles typically include stages like planning, procurement, manufacturing, deployment, management and disposal.
Defining the life cycle of your assets is crucial, as each stage has its own unique needs in terms of things like budget, maintenance and the number of employees needed to move the process along. Once you’ve defined your asset life cycle, you can assess potential opportunities to improve business efficiency and productivity.
No matter how simple or complex your asset life cycle is, it’s important to collect accurate data at each stage to keep track of asset maintenance, repairs and inventory. However, manually collecting data points is a tedious process prone to human error, and you run the risk of making costly mistakes that cause your company to suffer financial losses.
Asset tags, barcode scanners and inventory tracking software can automate the process and streamline your asset optimization. Tagging each asset with durable metal asset tags ensures it will remain in good condition throughout the asset’s life cycle, so you can always get the data you need without having to worry about the tags fading or losing readability over time.
4. Invest in an Automated System and Software
Asset management software makes regular asset tracking simpler than ever. Plus, with in-depth report generation, you can make informed decisions about the assets your company owns and take steps toward improving business efficiency. Powered by machine learning and artificial intelligence, an automated asset management system can help streamline various challenges companies face, including:
- Order cycle times
- Inventory accuracy
- On-time shipment
- Inventory turnover
- Carrying costs
- Order filling accuracy
- Anticipating future demands
5. Fine-Tune Your Maintenance Processes
In order to truly optimize your asset management, you’ll need to streamline and improve your maintenance planning. Assets routinely need preventive maintenance to extend their life spans and ensure they’re performing at their best. Letting asset maintenance fall by the wayside can lead to expensive repairs down the line.
You should work with your maintenance team to streamline the inspection process and identify areas where you can implement positive changes to save time, money and manpower.
When it comes to maintaining assets, it’s better to be proactive than reactive. Tagging assets with barcodes is an affordable and simple way to increase the efficiency of your preventive maintenance processes. When the time comes to perform asset maintenance work or inspections, technicians can quickly scan the barcode to get all the information they need in no time at all.
6. Automate Financial Reporting
Financial reporting is a key component of asset management. Good financial software automates the process and removes the tedious tasks associated with generating reports by hand. Your financial reporting framework should include information on things like:
- Asset depreciation rate
- Maintenance expenses
- Return on investment
- Budget tracking
- Revenue projections
- KPI performance
Your financial reports can also help you evaluate your asset management process to determine if your asset optimization strategies have been successful. If needed, you can make adjustments to ensure you’re managing assets smartly and cost-effectively.
The Bottom Line
A good asset optimization strategy can help your business improve the process of managing assets for a greater return on investment. By thinking strategically with your asset management team and establishing a regular schedule of reviewing, maintaining and reporting on assets, you can make sustained improvements to your business efficiency. Metal Marker Manufacturing can help you manage your assets with durable tags. Contact us at 1-800-428-0095 for more information.