Keeping track of the assets of the company is an important task that can save companies money and time. Asset management is the process of maximizing the assets of the company to provide the best returns to stakeholders. More often than not, it involves asset recovery as well. Businesses have a wide range of assets that include fixed and liquid assets. It is important for a business to be able to manage its assets, and use them to get the maximum possible returns. Below are the top ten reasons why asset management is important.
- Allows the company to keep track of all assets. Asset management allows the organization to keep track of all their assets. It can tell where the assets are located, how they are used, and when changes were made to them. The data from the asset management solution can ensure that asset recovery will lead to better returns.
- Manage assets from different locations in an accurate and effective manner. The company can easily create an inventory report that might be required by some insurers or lease financiers.
- Asset management can also be used to make sure that the amortization rates are accurate. Regular assessments of the assets will ensure that the financial statements of the business are accurate.
- Asset recovery is automatically reflected in an asset management system. Once assets are scrapped or sold, the said assets will be removed from the records and books of the business. Related assets, such as consumables and spare parts, are written off or sold to free storage space.
- You can save money on maintenance. During the operational phase of the life cycle of the asset, a company can face under maintenance or over maintenance problems. Maintenance is a business expense that can cut into the profits of the company. Overdoing it can bring significant costs. On the other hand, under-maintenance can lead to reduced productivity.
- It brings more efficient operation. Asset management allows an organization to understand the capabilities of its assets, and how they can be operated in the most effective manner.
- Allows the implementation of a risk management plan. Asset management also includes the management of the risks connected with the use and ownership of the assets. Proper assessment of the assets can help to identify the risks involved, and come up with a solution to avoid them.
- Proper asset management can help optimize your operations that include the planning, resources use, and in the implementation of the management program.
- Removes ghost assets in your inventory. There are times when items that have been lost or stolen are still in the inventory records. These are known as ghost assets. More often than not, ghost assets were items that have been inaccurately recorded.
- With the use of asset management system, incidents of thefts are lowered. Proper accounting of the asset recovery process will ensure that the company maximizes the returns with no items lost during the process.
As you can see, it is important for a company to implement an asset management system. It can be helpful in monitoring assets, as well as in the asset recovery process.
About AER Worldwide
AER Worldwide mitigates risk and provides global solution to handle your entire end-of-life materials management needs. We provide eco-friendly solutions and services throughout the entire IT product life cycle. Our Reverse Logistics efforts, or “aftermarket” services, help organizations after the initial sale and provide IT asset disposition support throughout the life of the equipment. With global locations, AER Worldwide will provide eco-friendly services, with certified brand protection techniques. To learn more about AER Worldwide, visit www.aerworldwide.com.