Asset management is the process of tracking, monitoring, and maintaining assets. It oversees the entire life cycle of an asset right from when it is purchased until it is decommissioned. One of the most fundamental components of asset management is inventory management.
Knowing what assets you have in your inventory, and understanding what assets you need helps you make informed asset management decisions. In this article, we’re going to take a look at how you can effectively manage asset inventory and how an IT asset management software solution helps in doing so.
How to manage inventory
Build an inventory database
The first step to managing your inventory is to build an inventory database. It must contain asset details such as:
- What assets you have
- When they were purchased
- What their purchase values are
- What their brands and models are
All of this information must be categorically stored in an easy-to-view database.
Building an inventory database manually is an immensely time-consuming process. On the flip side, it is a quick process when you use an asset management software solution. Dedicated asset tracking solutions can integrate with barcode scanners. Using this feature, you can instantly and accurately discover and add assets to your inventory database.
Your assets may change places and hands now and then. For this reason, it is crucial to keep track of where they are at all times. Assets that are not tracked run the risk of getting lost or misplaced. In such circumstances, you may not be able to find the assets you want to use immediately. It eventually results in operational delays.
Asset tracking solutions can locate where your assets are in a matter of seconds. They can integrate with NFC, GPS, and RFID technologies. This feature allows the software to automatically track asset movements in real-time. It saves you from having to manually check where your assets are.
Update asset data
Assets undergo dynamic changes from the time of their purchase until they are disposed of. They may:
- Change places
- Get replaced
- Undergo service
- Have changed parts
It is important to keep a track of these changes and update the inventory database. A lapse in updating such data can cause confusion and hamper productivity.
Asset monitoring software solutions can automatically synchronize asset data in real-time. Using tracking technologies, the number of your assets, service history and more will get auto-recorded and updated in your database. This eliminates any room for error which is a problem when you perform asset updates manually.
Differentiate high-value and low-value assets
While you may have a diverse range of assets in your inventory, you will not be using all of them as frequently as the others. It is vital to prioritize what assets are used the most over what assets are used the least. It helps you make strategic asset management decisions. Without prioritization, you may lose a lot of time focusing on assets that are not that important in your business.
Asset tracking solutions continuously gather raw data. After collecting asset-related information, they can then analyze it for meaningful insights. In this way, they can automatically detect which assets are used the most and which assets are used the least. Based on this information, you can easily differentiate between high-value and low-value assets.
Monitor physical condition
Assets deteriorate in condition over time. If their health is neglected, assets may function inefficiently and succumb to frequent breakdowns. In order to prevent this, it is crucial to carry out regular checks. It allows you to perform preventative maintenance, that is to maintain assets before they develop problems. This helps save plenty of time and money.
Asset maintenance systems are compatible with IoT technologies like sensors. By using these technologies, the system can automatically collect data on the health of your assets. That means you don’t have to manually and physically check the condition of assets. The assets can do this autonomously, in real-time.
The best way to manage asset inventory is with an asset management & tracking software solution. It has the features to help you manage every aspect of your inventory effortlessly. If you’re looking for the ultimate solution for managing your assets, I highly recommend SmartAMS. It is a world-class asset management software from SmartPoint that can manage inventory, as well as perform quick audits, automate the purchase of stocks, and more. Contact them to get a live demo of SmartAMS today.