The Business Benefits of Physical Asset Management
An up to date inventory
Creating an accurate starting point for your asset register is now much faster and more accurate than the old manual clipboard approach. The initial asset audit is a process whereby a predefined list of equipment are tagged with uniquely numbered asset labels and recorded with descriptive data into an electronic system. This can be carried out very quickly with an app on a dedicated terminal with built in barcode scanner or using a mobile phone and its camera. Communication is via Wi-Fi or mobile phone network with the web server database, building the new inventory online. The process can be carried out internally, or often just in a day or two with a specialist asset auditing company.
Custom barcode label
Typically data collected includes:
Asset ID: a unique number which can be a
barcode, a QR code, or RFID tag.
Category: e.g. Plant, Refrigeration, Furniture,
IT, Facilities etc.
Type: a sub category of the category e.g. Freezer, Printer, PC etc.
Description: a sub category of type e.g. Dell Optiplex 740, with serial number
Location and Sub Location: e.g. Building, floor, and room.
Condition: Predefined conditions varying from good, average, poor to estimates of remaining useful life.
Value: Based on a generic replacement value, purchase costs can be added later
Additional fields Any other relevant asset data can be recorded at the same time e.g. user or department.
The Advantages of an ongoing management system
Once the data has been collected it should be noted that it will be out of date very quickly due to new purchases, disposals, latest maintenance results, and asset movements. So recording these changes on a mobile app linked to an online database recording system is extremely efficient compared with paper or updating XL spreadsheets.
Typical online asset register
- An accurate starting point for the ongoing asset management system.
- Automated maintenance and inspection recording is faster and easier.
- Electronic verification of contractor works
- Proof of ownership and theft
- Best usage of existing assets with the potential to redistribute unused or over supplied assets rather than purchasing new equipment.
- Replacement cost budgeting becomes much simpler to manage, filtering on retirement dates and financial years.
- The inventory provides accurate sums insured at each location and faster claims settlements.
- Life-cycle information recording is possible for individual assets and not just groups of assets.
- Check in check out procedures for loans or repairs are completed against a staff ID card or a destination. This removes the need for a paper form as the new location or user is automatically logged. Alerts for returns or overdue items can be set up.
- Stock control over consumables can be managed on the same system
- Maintenance and inspection records are tied to individual assets – so better compliance with regulation and inhibiting M&E breakdowns.
- The depreciation function can be run over the actual live assets not what is assumed to be the live assets according to purchase records. Value thresholds can be implemented.
- Easy recording of asset disposals and compliance with WEEE regulations is demonstrated.
- Any other documentation such as user manuals, photos, and floor plans can be attached to any record and viewed on the mobile device.
- All paper based or spreadsheet form filling can be replaced by fast digital mobile processes, accelerating productivity, while for management oversight, a transparent audit trail of who did what when is accessible 24/7 from any Internet connected device.
Established for 20 years ASSETTRAC Ltd can provide all the elements of an integrated asset management solution in all commercial sectors. Labels, onsite asset tagging, mobile apps and online software programs are all available under one roof.
ASSETTRAC Ltd, 01273 491267, or email@example.com
Author: Stephen Laing, Managing Director @ Assettrac
Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.