07 October 2020

Cost-Effective Asset Management Strategies and How to Adopt Them

An asset management system is important for any organisation as it can help in the proper management and monitoring of all your assets with a systematic approach. Proper asset management has a lot of benefits to offer an organization, including improved productivity, better efficiency, and streamlined operations. Despite the numerous benefits offered, there are a few things that you should keep in mind before integrating this software into your organisation.

The complex working environment of an organisation poses a lot of challenges when it comes to integrating asset management strategies, of which, the cost is a major concern. That being said, here are some of the best cost-effective asset management strategies that an organization can adopt through their asset management system:

1. Enhancing the Asset Life Cycle

An organisation is as good as its assets. The proper tracking of your assets allows for timely maintenance, which can go a long way in increasing the asset’s lifespan. An asset management system helps in executing this process with ease. With the help of this software, you will be able to track your assets for maintenance requirements or signs of an impending breakdown, which would also help in enhancing the overall efficiency of the machines and assets of your company.

2. Understanding Asset Depreciation

The lifecycle of every asset is different, and managers should be aware of how a particular asset depreciates. This helps in segmenting assets based on their ability to function efficiently. Asset management software helps in determining the usefulness of an asset, the cause of its depreciation, and whether an asset is outdated. Without this understanding, your staff members may keep using outdated assets, which would result in reduced efficiency. Tracking the depreciation of an asset allows you to determine which assets need to be sold, donated, or disposed of.

3. Preventive Maintenance

Preventive maintenance for all assets should be carried out by organisations from time to time. This is an effective practice as it is planned and helps keep assets in optimum condition, ensuring that breakdowns and resultant downtimes can be avoided. Preventive maintenance allows you to find potential issues and fix them before they become major problems, making it one of the most important business strategies for cost-saving.

4. Setting Short- and Long-Term goals

Another asset management strategy adopted by organizations is setting quarterly, half-yearly and yearly goals. You can set your goals on a daily basis as well, along with setting the priority and sequence of important tasks.  After the completion of a particular time period, the top management should look into whether the goals have been achieved or not. If there was a problem achieving the goal, take timely actions to suss out the reasons and modify your business processes accordingly on a regular basis to ensure maximum efficiency.

Steps to Implement Asset Management Strategies in your Organisation

One of the most effective ways of implementing cost-saving asset management strategies is to integrate suitable asset management tools into the infrastructure of your organisation. However, choosing the right asset management software and ensuring proper implementation is also highly important. Here is what you can do:

⦁ The first step is to review the structure of your organisation.

⦁ Conduct a self-assessment of all your assets to understand your needs.

⦁ After this, the next step would be the identification of the asset management policies and goals that you wish to achieve.

⦁ Prepare an action plan for your asset management and integrate it part by part.

⦁ Next, you would need to review and monitor the progress of the system.

⦁ Solicit feedback from your stakeholders and implement changes if required.

An asset management system forms a very important part of implementing any cost-saving strategy for asset management and helps improve the overall lifecycle of a business’s assets.