06 February 2020

Here’s How You Can Overcome Challenges of Asset Management

Asset management is of utmost importance, and with it, is the understanding of the challenges that you will or might have to face. It is only after this, that you will be able to employ the best strategies or a system of asset management which can then make a real difference in regards to operational efficiency and cost, reduced equipment and vehicle downtime as well as increased customer and employee satisfaction.

However, a process this important can be daunting. So, where do you begin? Well, here are the 5 tips that will help in implementing an effective asset management plan: -

Making Asset Procurement Decisions

Amongst all the things that are needed to be considered in the earliest stage of any asset (vehicle or equipment), procurement is the purpose of the asset. For example, in case of a vehicle, you will need to consider the kind of carrying capacity you seek and the types and amounts of tools or goods it will be carrying. Focusing on the features and capabilities of the required vehicle will certainly lead to more effective choices. 

Boosting Utilisation and Uptime

Once you have procured the right vehicles and equipment, a significant part of ensuring the most value from them will revolve around reducing downtime. However, calculating the costs of downtime can be pretty difficult. That is why you can find many asset management software solutions these days to help you with that. 

Implementing Replacement Cycles

Another issue faced during asset management is the difficulty of finding effective replacement cycles for fleet, vehicles and equipment. Throughout every operation, the consideration for assets (vehicles in particular) should include the mileage variances, financial rates, purchasing process and incentives that may be required for new purchases or leases, keeping in mind the projected maintenance costs as well as the resale value of used assets.

Managing Total Cost of Ownership

There can be no asset management plan which is complete without a thorough understanding of vehicle and equipment (assets) lifecycle costs. The analysis of the total cost of assets, from initial purchase through all operations, maintenance and to even resale presents a proper financial picture that enables you to make the most cost-effective choices.

Taking a Systematic Approach

Ultimately, the effective management of assets is an essential business process. To solve asset management challenges, you will require accurate and actionable information. However, the ability to make fact-based decisions keeping in mind what works best for your operation isn’t something you will be able to on your own. At times, you may even need asset management services, which fortunately can be found in abundant these days.

Meeting all of your asset management challenges can be quite the task, but if done well, it will lead to a greater level of customer satisfaction, much lower costs, enhanced vehicle and equipment productivity, revenue growth and a higher chance at profitability.