Any organization, in either public or private sector, will need to deal with asset tracking software for equipment management. Tracking an asset’s lifetime is essential. There are already different systems, methods, software, and standards which are used to manage different types of assets. A robust asset lifecycle management solution would enable an effective and well-organized asset and deliver services. For the same purpose, companies use asset tracking software to track and manage their assets’ lifecycle.
Asset lifecycle management is the process that comprises of different stages of an asset that it goes through the span of its lifetime. The main stages of an asset’s life-cycle are planning, procurement, operations and maintenance, and disposal. This blog details the stages of an asset’s lifecycle and how you can track them using asset tracking software!
Benefits of a Good Asset Lifecycle Management Solution
– Forecast your needs better
– Make informed purchasing decisions
– Be proactive when it comes to replenishing resources
– Improve the quality of IT services
– Know the total cost of ownership of an asset
When you’re not tracking the Asset Lifecycle, you don’t monitor what assets your business owns, where the assets are, who is using them, and how well each asset is working and the following occurs:
– Unnecessary costs pile up
– Resources are wasted
– Inaccuracy and lack of organized data
– Business inefficiency
Stages of Asset Lifecycle Management
The wide-ranging factors under asset management have been classified using a simple, four-stage format. This is to help you understand and manage with ease the best practice methodology in asset management. The critical aspects of the cycle, from a data accuracy perspective, include planning, procurement and operations at the front end of the cycle and disposal at the back end.
Planning is the first stage of the asset lifecycle that a robust asset tracking software helps you record and manage! This stage establishes and verifies your business requirements for an asset. Establishment of these requirements is based on the evaluation of the existing assets and their potential to meet your business needs. Throughout all stages of planning, it is crucial to make sure that the ongoing development adds value to the organization. If the company uses planning in all asset management cycle stages effectively, it will help in:
– Assessing the current state of existing assets.
– Ensuring items are available when required.
– Recognizing excess or under-performing assets, even ghost assets.
– Estimating options for future asset acquisition.
– Ensuring assets are maintained and in optimum level.
This stage monitored via asset tracking software gives the most excellent means of delivering value-added asset management.
The acquisition in asset lifecycle management includes activities involved in an asset’s procurement with the aim of ensuring cost-effective acquisition. This stage includes every aspect of acquiring an asset, from initial purchase order request to arrival and assigning it to the user to begin using the equipment. The two broad processes in this stage involve user management and the approval process. This also includes receiving a proper request and purchase order approval for items that may include quantity and vendor details, and any related documents. Ultimately, the goal of the procurement process is to enable the best price for the best product available to meet the business’s needs, while providing full asset visibility.
Operations and Maintenance
The most crucial and important stage of an asset’s lifecycle is the operation and maintenance of the asset. It indicates the usage and management of an asset, including maintenance, with the aim of delivering continuous and timely services. The goal of asset tracking software should have a high focus on service and maintenance events.
Assets with longer life, especially in the public sector like on the roads and buildings require ongoing and specific maintenance during their life cycle. Throughout this stage, an asset should be the focus of appropriate maintenance, monitoring and potential servicing to overpass any gap in operational requirement.
Read More: Ways to reduce maintenance costs
Disposal and Replacement
As we said above, disposal or retirement is the stage in an asset’s lifecycle which is handled at the back end. When an asset reaches its useful life, it can be treated as a ghost asset. These can also be referred as unused assets and these are difficult to track. So, to enable effective asset tracking and eliminate ghost assets, any unnecessary increase in the asset stock should be countered by an exit or retirement linked to the acquisition. In simple terms, new equipment in should lead to the old equipment out. The best practice would be asset replacement. It should not occur simply as a result of an item suddenly ceasing to function. This stage can be automated through the use of asset management solution.
Read More: Tracking and Eliminating Ghosts Assets
Choosing the best Asset Tracking Software?
The best solution is the one that saves time, reduces operating costs and effectively monitors asset lifecycle. EZOfficeInventory is the leading asset tracking software used by SMBs and technopreneurs all over the globe. Track stages of asset lifecycle management seamlessly. Sign up today for our 15-day free trial and start increasing your company’s assets ROI.