Introduction to Asset Inventory Management and Its Importance in Business

Assets and inventories are an important part of the business. But if someone asks you how many assets your organization has or where your assets are located you might don’t have an answer to that question. There are lots of organizations that are equipped with a lot of assets, but they don’t keep any information about these assets.   

When an organization does not keep track of assets and inventories, these organizations have a lot of incidents of assets theft and asset misplacement. That is why it is important that organizations have asset management software. What exactly inventory management software or asset management software is, that you will learn in this blog now!

What is asset management?   

For daily operations, businesses are dependent on assets. It makes them more competitive and productive and helps them in achieving business objectives.   

Asset management enables organizations to keep track, monitor, and manage assets. Asset management plays a crucial role in asset maintenance, and it also helps in asset life cycle management. From asset acquisition to asset disposal, asset management assists the organization in all stages.  

Basically, asset management is the process of operating, maintaining, and selling assets in a cost-effective way. According to Markets and Markets, “The Asset Management System Market is projected to grow from USD 16.8 billion in 2020 to USD 27.4 billion by 2025; it is expected to grow at a CAGR of 10.3% from 2020 to 2025.”  

What is inventory management?  

Inventory management is the process of managing inventory. It allows you to keep inventory at the right level at the right time in the right location. It is a systematic method of storing selling inventory. If you do not manage inventory in the right way your business will collapse.  

Improper inventory management can give birth to stock issues such as out-of-stock or understock issues. It can be very lethal for businesses.  

Inventory management also means that you have always stock in hand so that customers do not disappoint & order fulfillment. With inventory data assistance, you can get track trends that can give you an extra edge in business.  

Also Read: How does the school management software protect student data?

Why inventory management and asset management are important in business?  

Below we have mentioned how asset inventory management helps businesses by improving their daily operation and increasing productivity.  

Removing manual work practice –

When you the inventory management and asset management process manually you might end up in an overwhelming situation with lots of human errors. Lots of organizations use a spreadsheet for keeping track of assets and inventories again you will end up with lots of errors and inaccurate data. For instance, if you are making data entries of inventory and if errors are there are data will not match with actual inventory which is not good for business.  

With inventory asset management software, you can easily avoid these types of problems. As a result, errors will be reduced, and data will be accurate.   

Asset & inventory tracking –

When there is no proper tracking of inventories and assets then you will lose assets via theft and misplacement. Asset or inventory theft impacts the bottom line and misplacement of assets decreases productivity when you are looking for some specific asset you do not found it, so worker time is wasted. Asset management software will keep track of assets and inventories and as a result theft occurrence or asset misplacement will be minimized.  

Alert & notification –

This Asset inventory management software also helps in effective inventory management. It has several features that make you more efficient for instance when your inventory is about to finish it alerts the team about low inventory level and the responsible person starts the stock refilling process. This software data also helps in setting reorder levels with historical data.  

Ghost asset elimination –

Asset management helps in eliminating ghost assets that exist in the organization. Those assets which are lost, unavailable, the stolen assets but are mentioned in the account book are called ghost assets. These assets are physically not available. They can impact your business in a bad way as you will pay taxes for the assets which you are not even using. If ghost asset exists in business, it means your organization is not following compliance rules and regulations. This software ensures that ghost assets are properly eliminated from the organization  

Maintenance purposes –

This software allows you to keep track of asset maintenance, maintenance tracking so that maintenance scheduling is done on time. When your maintenance expenses are minimized business profit ratio increases which means improved business. This software emphasizes preventive maintenance which allows organizations to keep asset maintenance proactively. It decreases the chances of sudden asset failure. Sudden equipment failure is a huge problem as it can halt daily operations which impacts production work and delivery can be delayed.  

Conclusion

These are only a few of the benefits of asset management software. It can be very beneficial in terms of saving expenses you will notice its benefits when it is implemented. For organizations, this is one of the essential software especially if your organization has lots of assets and inventories that come in and goes out frequently. It has the potential to improve your daily activities and outcomes can be optimized with this software assistance. If you want to gain an extra edge, then this software can provide you with.