Asset tracking is technological method business organizations use to keep up-to-date information concerning their physical assets. It involves using software to store relevant data like ownership, location, maintenance records, and contracts of each asset. A centralized asset tracking system saves the organization time and workforce for tracking the assets manually.
Depending on the type of business, the following are some assets you can maintain using a tracking system.
- Fleet vehicles
- Construction assets
- Medical equipment
- Appliances
- Signage
- Tools
- Furnishings etc.
An asset tracking system must have the following features to give the full benefits.
- Alerts
- Scalability
- AccessibilityReporting and Analytics
- Flexibility
Any business with valuable assets can benefit from a tracking system irrespective of the size. Below are some ways this system can boost business efficiency.
1. Compliance with Regulatory Requirements
Asset regulations vary depending on the type of industry. For instance, organizations that handle potentially risky assets have to keep an accurate record of maintenance, condition, and incident information.
An automated asset tracking technology will make it easier to comply with these requirements since the business stores all information in one location. Workers can also obey internal regulations concerning assets, leading to improved business efficiency.
2. Increasing Accountability and Minimizing Costs
The lack of a central tracker for assets leads to the company’s misuse and mishandling of assets. You can always know the condition, location, and department or individual that is using a particular asset at a given time using a centralized system. Every worker will be accountable for the equipment they use. Such a level of accountability reduces internal costs and smoothens business operations.
3. Enabling Growth
When planning on scaling your business, it is good to understand how to use each asset currently in the industry. A proper asset tracker can boost your business growth in the following ways.
- Eliminating theft and asset misplacement
- Removes asset downtime
- Boosting management of assets in complex supply chains
Gaining a more precise knowledge of how individuals in your organization are handling your assets gives a better insight to improve the performance of each asset. Increasing asset performance directly increases revenue, leading to significant growth. The data in the tracking system can also help you monitor the trend in use and plan to grow your business accordingly.
4. Boosting Accuracy
Being able to track the details of your assets like location, conditions, and uses in real-time boosts your business efficiency. It makes you confident in making sound business decisions. Leaders use the data from the tracking system reports to make strategic plans for the future of the business. However, to reap this benefit of accuracy, you have to ensure that everyone in the company obeys the tracking system.
5. Improving Customer Service
If you can track your assets at all times, you will be in a better position to meet your customer demands. It improves inventory availability and efficient business operations. It also enhances employees’ ability to offer correct responses to questions concerning asset status. For instance, a big construction company can assure a client when the work will start if they know when equipment will be ready.
6. Identifying Ghost Assets
Ghost assets will still feature in an organization’s tax and books of account regardless of their disappearance or getting out of use. A proper physical audit of all assets using a good tracking system will help you recognize all the ghost assets in your business. Removing ghost assets ensures that you do not suffer ghost taxes in the future if there is regular auditing.
Final Thoughts
Virtually every business organization has valuable assets. Implementing a proper asset management system can streamline business operations, ensure efficiency, and retain the value of their equipment. It also helps with sound decision-making and improving customer experience.
