subject: Company Mangers Andasset Tracking Systems [print this page] A good asset tracking system will inform a company where its assets are.The way that a company can get a handle on this is to purchase a good asset management system. Asset tracking software will provide tons of information that management can use to effectively run the company.For example, management can run reports that will let them know what is in stock, what has sold and what needs to be repaired.
A quality asset management system will track assets on various levels.Every physical asset will be tagged and entered into the system.This will stop manual mistakes from being the norm.
Why do manager run reports like these?It is the only way to put a value on company assets.All assets should have a value.if there is no value, there is not a need for it.
For a successful asset management system to work, it should go through a four cycle process. First the company has to do a physical inventory of its assets and determine if they add value to the company.It is at this time that other assets are purchased.For example, the company might have to purchase additional equipment to produce at the same level.Or, possibly new equipment has to be purchased in order to keep up with the extra demand for product.Second, the company has to put their assets into production in order to make the best use of them.Third, the company then has to determine if it was worth getting the new equipment in the first place.Can these assets still be labelled as such?Or, have they become a burden to the company?Also, this is when the assets have to be valued for yearend taxation.Last, the company disposes of assets that no longer have value to the company.These things must happen to guarantee success.
Companies need to follow this cycle and monitor its assets at all times.Via asset trackingsoftware, the company can make decisions based upon new purchase, repairs and disposals.A lot of time, equipment are terminated before the end of the cycle.This can stop or cause company production to slow down.Everything ceases until the company gets new equipment.This means no new revenue during this time.
Getting the wrong assets can reduce profitability.Managers have the responsibility of purchasing the right equipment to get the job done.They are also expected to work within a departmental budget.If the equipment is too cheap, they can get bad equipment.Management must make the right asset purchases.This cannot be done without a good asset management system.This is a very important investment.
