What is an Asset Management System? An Ultimate Guide

Imagine handling thousands of assets daily without a reliable tracking system. It would be challenging to keep track of their locations, custody changes, and overall status, leading to confusion.

Additionally, manually managing critical assets using spreadsheets can be costly and time-consuming. Neglecting to update these databases regularly can result in lost or stolen assets. Companies may find that 10-30% of their assets are missing, or ‘ghost assets,’ which can result in significant financial errors and reduced operational efficiency.

An asset management system is the key to solving these challenges. It acts like a digital command center, keeping a vigilant eye on every asset. Real-time tracking and automated updates eliminate guesswork and manual errors. This means every piece of equipment is accounted for, ensuring financial accuracy and boosting operational efficiency.

This article will explain what an asset management system is, its key features, and how it can transform your business operations.

What is an Asset Management System?

An asset management system is a tool used by businesses to monitor, maintain, and optimize their assets throughout their lifecycle, ensuring efficient utilization, and cost control. By tracking assets digitally, it enables real-time insights and data-driven decisions.

These assets can be tangible, like vehicles, machinery, and industrial equipment, or intangible, like software and monetary assets. The software provides important information such as asset locations, users, usage details, and asset conditions into one platform, which can be accessed via web and mobile applications.

For the system to be effective, companies need real-time tracking to avoid losing time and money. The software helps achieve this by providing a comprehensive view and control over all assets, ensuring efficient and effective management across the business, particularly in industries like manufacturing and mining.

Why Businesses Need Asset Management System

Manual asset management can lead to significant drawbacks, with almost half of businesses lacking proper inventory and asset management practices. Shockingly, 43% of the companies either use manual tracking methods or do not track inventory at all.

Additionally, research shows that approximately 80% of employees waste half an hour a day retrieving information, highlighting the inefficiencies of this approach.

However, there’s a solution to this problem. With an asset management system, businesses can effortlessly automate asset tracking and management. Real-time updates are easy with the simple scan of a barcode or RFID tag, keeping tabs on asset locations and conditions.

Asset management solutions deliver peace of mind with robust functionality and accuracy, making them vital for businesses. The benefits of asset management system include the following:

• Reduce costs: asset management systems reduce costs by improving efficiency and preventing equipment loss.
• Mitigate risks: Identify and mitigate risks to assets, ensuring their security and longevity. While 80% of equipment maintenance is reactive, it should be proactive. Asset management systems help businesses conduct preventive maintenance.
• Optimize maintenance: Plan maintenance schedules to prevent unscheduled downtime and costly repairs.
• Seamless asset tracking: Efficiently track, maintain, and allocate industrial equipment from a centralized hub, reducing loss and improving organization.
• Enhanced location management: Easily monitor equipment location across multiple sites, facilitating automatic updates and expansion.
• Complete audit-ready records: Maintain comprehensive records of equipment, ensuring the company is always audit-ready without manual effort.

How Does Asset Management System Work?

Effective enterprise asset management starts with assigning a dedicated manager to oversee all aspects of the company’s assets, including equipment, inventory, and personnel. This manager develops a comprehensive plan for asset management, covering their development, operation, maintenance, and eventual disposal, ensuring efficiency at every stage.

A holistic approach to asset management considers the entire lifecycle of assets. Examples of asset management systems include managing industrial equipment and vehicles, from procurement to disposal. This approach ensures careful monitoring and control at every step.

The right asset tracking system is crucial, as it helps collect and analyze data to inform decision-making. For example, it can track different industrial machinery brands’ performance, maintenance costs, and lifespan, aiding in procurement decisions.

Asset management systems are very important investments for companies. If you’re looking for the best asset management system in the Philippines, HashMicro stands out as the best choice. For more detailed information about HashMicro’s system, you can download the price scheme below.

How to Develop a Strategic Asset Management Plan

A strategic asset management plan outlines the activities, resources, and schedules needed to achieve a company’s asset management goals. Here are steps to develop your own plan:

1. Collect information: Gather details about all company assets, including their count, location, value, acquisition date, and expected lifespan. Calculate the total lifecycle costs for each asset to prioritize maintenance or removal.
2. Set service levels: Determine the quality, safety, reliability, and other factors that measure asset performance management. This helps assess each asset’s value and plan maintenance and renewal activities to maintain optimal condition.
3. Specify management and operation: Understand each asset’s lifecycle and plan actions to meet service levels sustainably. This includes:
   • Background information: Details like age, size, and current condition.
   • Risk management plan: Identifying and addressing risks that could impact service delivery.
   • Operating plan: Defining procedures to maintain service levels.
   • Maintenance plan: Outlining maintenance strategies and costs.
   • Disposal plan: Planning for asset disposal and associated costs.
4. Establish a financial strategy: Summarize the plan’s financial needs, including past and future budgeted expenses, funding sources, and relevant adjustments such as those documented through a debit note.
5. Create an improvement plan: Outline improvement initiatives, responsibilities, resources, and timelines. This plan helps monitor and control asset management activities to ensure effective practices are applied and progress is maintained.

Utilizing an asset management system can streamline these steps by providing a centralized platform for collecting asset data, setting service levels, managing operations, tracking finances, and monitoring improvements. This system ensures efficient and organized asset management, leading to better decision-making and optimized resource allocation.

Optimizing Operations with HashMicro Asset Software

A strategic asset management plan is vital for streamlining operations and enhancing efficiency. To support this, HashMicro’s asset management software provides a comprehensive suite of features that complement the planning process and boost overall productivity.

Here’s how it simplifies and improves asset management:

• Efficient asset tracking: HashMicro enables precise tracking of assets through automated identification systems. Utilizing barcodes or RFID tags ensures all assets are easily located and managed throughout their lifecycle.
• Proactive maintenance scheduling: The software aids in planning maintenance activities, alerting you to necessary upkeep to prevent downtime and extend asset life.
• Comprehensive lifecycle management: HashMicro offers thorough lifecycle management capabilities from acquisition to disposal. It assists in monitoring asset value, managing procurement, and strategizing for future asset replacement.
• Asset utilization insights: With HashMicro’s analytical tools, you can gain valuable insights into how assets are used. This information helps maximize asset efficiency and availability across the organization.
• Regulatory compliance and risk management: HashMicro supports adherence to industry regulations and manages asset-related risks. It simplifies compliance and ensures readiness for audits with organized documentation.
• Data-driven reporting: The software provides customizable reporting features that allow for detailed analysis of asset usage, maintenance expenses, and value depreciation, aiding in informed decision-making and future planning.

You can achieve a well-organized and effective asset management system by incorporating HashMicro’s asset management solution into your strategic plan. Its robust features are designed to align with your asset management objectives, offering a streamlined approach to managing your company’s valuable assets.

How to Find the Best Asset Management Software

Asset managers face the task of choosing the right platform from various options, each offering unique features. They must carefully evaluate the platforms based on their business goals and requirements to make an informed decision. Here are key factors to consider:

1. Business objectives: Evaluate the system’s features against the business’s short and long-term goals. Look for features that align with objectives, such as enhanced asset visibility and improved customer response time.
2. Budget: Assess each system’s payment structure to ensure it fits the budget. Consider factors like the number of assets, add-ons, and team members required, comparing costs to find the most suitable option.
3. System type: Based on your business structure and preferences, choose between cloud-based and in-house systems. Cloud-based systems are often preferred for their flexibility and accessibility, especially for businesses with multiple locations.
4. Security capabilities: Prioritize security features such as OTPs, password protection, and custom roles to safeguard sensitive data stored in the system. Ensure that the chosen system protects against potential threats and unauthorized access.

If you are wondering which asset management system is the most suitable for your business, you can read more about the best asset management software in our article.

Conclusion

With a clear understanding of the importance of asset management, Philippine businesses need a reliable solution to streamline their asset tracking and management processes. HashMicro asset management software is the top choice for companies in the Philippines when optimizing their asset management.

HashMicro’s user-friendly platform simplifies asset tracking, maintenance, and reporting, which boosts operational efficiency. Advanced features like automated depreciation and real-time analytics help businesses maximize asset utilization.

HashMicro adapts to businesses of all sizes, providing a 360-degree view of assets. This enables informed decision-making and strategic planning, driving success. With HashMicro, tracking and managing assets across locations, departments, and teams is seamless.

Moreover, it integrates easily with other systems, such as accounting, inventory, and manufacturing, providing a unified asset management approach.

Take the first step towards optimizing your asset management – sign up for our free demo and see the difference HashMicro can make for your business!

FAQ About Asset Management System

• What is a good asset management plan?

  Calculating the life cycle costs of your assets is crucial for developing a precise asset management plan. This includes not just the initial purchase costs, but also ongoing expenses like maintenance, performance upgrades, and disposal.

• What is an asset management platform?

  Asset management software helps centralize asset information, making it simpler to track assets across an organization. Modern businesses use this software to lower the administrative costs of managing their assets.

• What are the 5 steps of asset management?

  Each asset experiences five key stages in its life: planning, acquiring, using, maintaining, and disposing. Most of the time is spent during the use and maintenance stages, but every stage is crucial for maximizing the asset’s value.

• Is asset management part of ERP?

  While an ERP system can help with asset management, it is primarily focused on centralizing core business information and handling daily operations. In contrast, EAM software is specifically designed for asset management, offering detailed modules for tracking and analyzing asset performance.