Efficient asset management is an essential component in keeping an organisation running smoothly. The proper management of a fleet of assets will translate into operational efficiencies, a good Return on Assets (ROA) and ultimately, an improved bottom line. One of the most important aspects of asset management is asset tracking, which is essential to maintaining a relevant understanding of an organisation’s movable assets, especially in terms of their location, usage status, maintenance schedule and security.
According to Jane Cartwright, Chief Operations Officer of RentWorks, ‘the ultimate goal of asset tracking is to maximise asset control efficiencies and to minimise asset and financial losses’. If assets have been properly managed, tracked and maintained, routine audits become much less of an operational challenge, and time which would have been wasted on the process can be more productively spent on the core functions of the business.
The previous article in this series looked at the top four asset-management challenges facing businesses today. These are:
- the physical loss of an asset;
- the data protection and security implications of a lost or stolen asset;
- the ability of an organisation to proactively manage any one of its assets (whether owned or leased) at any given point in time; and
- the ability of an organisation to be fully in control of all its assets.
‘Proper and efficient asset tracking largely addresses these asset-management challenges, which in turn will directly affect an organisation’s bottom line,’ says Cartwright. ‘As asset management efficiencies improve, the associated costs automatically decrease, or at least can be effectively assessed, forecasted and managed.’
According to Cartwright, ‘the fact that all assets can be quickly located and reported on in real time is an obvious advantage of having an effective asset-tracking system in place, as is the fact that this translates into improved asset management accuracy. Inventory records can be adjusted according to real-time information, which remains up-to-date and relevant.’
If assets are properly tracked though a seamless system, fewer resources and administrative costs are wasted and accountability can be ensured where items have been lost or stolen.
‘While there are various asset-tracking solutions available in the marketplace, RentWorks offers its customers access to real-time rental and asset information with trusted asset inventory data, which includes all relevant information relating to each asset in circulation,’ says Cartwright. Its value-added differentiators include the ability to:
- track assets even when they are outside of a particular network;
- highlight which leased assets are due or overdue for return;
- flag potential asset-management challenges and enable proactive risk management;
- make use of predictive analytic tools which assist with the ability to make informed business decisions quickly;
- improve reporting and governance;
- assist with insurance claims;
- promote efficient and easy auditing processes; and
- manage leased-asset refresh cycles and anticipate when assets are at the end of their leasing terms.