In an era where e-commerce and numerous storage centres have become the norm, the need for asset monitoring is required. While most cases companies start with manageable assets, over time, they grow to a high magnitude, hence requiring a new approach to monitoring them. Poor asset management will not only increase financial loses by misallocating your resources, but it will also increase unforeseen vulnerabilities in your company.
One problematic asset will in most cases cause a chain of events which will require an overhaul of all affected areas. An efficient system will allow you to connect various assets to their users which create efficiency. While there are several ways to monitor assets, current technology is helping small companies save money by tracking all their assets in their storage spaces continuously. One tool that has become common is the use of QR codes since they are affordable and can be easily tracked internally. Large companies that boast having several warehouses, in different regions will allow them to keep track of their products in each warehouse.
The ideal tool for these kinds of companies is the use of a GPS tool. It will not only identify the location of each asset, but it will also organize them depending on warehouse and category. To help you understand the importance of asset management, here are five tips on why it is important.
Reflection of asset recovery
While running a warehouse or a storage unit, you will need to have an ideal continuous monitoring management system. Assuming you have a salvage yard and you sell a working second-hand car, you will need the system to acknowledge this sale.
Continuously managing your assets will help you scrap off sold items from business books and the system. Current systems also provide cloud storage where if products are once deleted, you can recover them. Additionally, even after scraping off these products, you can view them under archived products.
Access to all information
Poor tracking services cost companies millions in revenue. It is no secret that handling every detail of a piece of hardware and document can be taxing; this can ultimately cause your company to experience full-blown chaos. By having a central asset management tool, you get to have access to all information regarding addresses, warranty and even IMEI numbers. By using current technologies, things get easy since you can categorize them efficiently.
Prevent theft and wastage
By monitoring your assets continuously can help you prevent theft. While several techniques can help monitor your assets; using technology is among the best ways to help you achieve that. Let us face it; tracking all your assets in a single warehouse is sophisticated, what about monitoring several assets over various warehouses?
Relying on the old school system of identifying assets will not only hinder your operations, but it will also increase wastage in your company. With the right software tool continuously monitoring your assets, you will benefit in having an organized inventory that will also help you understand how it has been used and in case any changes have been made. Additionally, knowing the precise location of an item will also help you in reducing wastage and time spent.
Maintaining your assets can be costly during the operation process. During an asset’s life cycle, maintenance costs are calculated poorly. In most times maintenance problems are common which can skyrocket the costs. However, with the right monitoring tool, you can be up to date without experiencing any problems. Maintenance costs if never reduced can lead to reduced profit since most of the revenue received is used to run the expenses. Lastly, over maintaining can lead to reduced revenue so is the under maintenance. An ideal balance is needed if a company is looking to maximize its profits.
Risk management plan
Managing your risks can hurt your revenues. This explains the need for having an ideal asset monitoring system will help you have a scope of your risk management plan. This means that you manage all assets in terms of ownership and use. By assessing your assets, you identify all the risks involved which ultimately allow you to come up with a proper solution to void them.
It is no secret that companies lose million in dollars due to poor asset management. For big companies which have several warehouses around the globe, the use of GPS is essential in preventing theft. Having this continuous approach will allow companies to keep track of all moving inventories without wastage.
In case your business is small, you could always start with a QR code system to help you track your assets internally. Additionally, once a product is sold, changed or damaged, the central data system will automatically acknowledge the command which will allow you to keep track of all your products while remaining accountable.