Why Asset Management Is Key To Business Performance

asset management software inventory tracking program

Often it happens that two terms or phrases are so similar that we tend to use these interchangeably even though these are quite different from one another. The similarity between the terms is quite superficial, and if you look deeper, you will realize that these relate to very different ideas. For example, keeping records of all assets belonging to any organization of government is mandatory to have information about the inventory of assets. People often consider this activity as inventory management whereas in actual practice it is purely asset management and the inventory list created in the process is purely incidental. 

Importance Of Asset Management 

Asset management is a very important activity for companies because it saves money and time by maximizing the use of assets to provide the best returns to all stakeholders. In most cases, the activity includes the aspect of asset recovery too. Asset tracking covers all kinds of assets from fixed assets to liquid assets that a company holds. From buildings, plants and machinery and tools to anything tangible, and even intangible managing all assets effectively is possible by using asset tracking software that keeps a tab on all assets including the movements undergone. 

And don't forget about insurance asset management either, which is crucial for your business success.

Asset Register 

The activity of asset monitoring begins with the creation of an asset register that lists all assets belonging to the company or organization. Since it is similar to an inventory list in its appearance, many people often confuse assent management with inventory management as stated earlier. As time passes, every asset in the list generates its own history effectively captured through asset management. The asset register paves the way for creating an asset management plan that goes a long way to improve productivity and efficiency and places business in the right track for providing the best return on investment. 

Monitoring Assets Through Its Life 

Asset management is all about keeping track of assets throughout its lifecycle. For example, asset management helps to keep track of a machine right from the time of its purchase and installation through renewal until its final disposal. Managing assets manually can be a complex activity that might be too difficult to update data on time and using some software is the way to do it conveniently and accurately. Any asset management software can accurately and efficiently manage assets by updating information real time so that it is possible to know the exact location and history of an asset. 

Tracking Documents Related To Assets 

Besides tracking the assets physically, the software used for asset management maintains a detailed history of assets by drawing all documents related to it. From purchase orders to invoices and from operating manuals and drawings to warranties and maintenance contracts, every piece of document that the asset generates can be uploaded in the system and create a huge body of information related to the asset. By knowing the assets that a company has together with its location and status, it becomes easy to utilize assets better instead of purchasing new assets that save huge money.

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