What Is Asset Management Software? (With Implementation Tips)
By Indeed Editorial Team
Published 4 May 2022
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
Business managers can use management software to help them decrease their administrative costs, improve their service delivery and manage their daily operations. Asset management software can help managers track their company's tangible and intangible assets, such as their inventory and personnel. Knowing what software for asset management is and how it benefits businesses can help you select the right software for your needs and implement it successfully. In this article, we define what asset management programs are, list its benefits, share different management programs available and provide tips for implementing this software in your workplace.
What is asset management software?
Asset management software programs import and collect asset-related data. It's a tool that can help procurement and inventory professionals import and collect data for business reports. Businesses use this software as a more reliable and easy to organise alternative to storing data on spreadsheets, which can be prone to human errors and typing miscalculations. Businesses can purchase asset management software and customise it to their individual needs, using its insights to reduce their operating costs and operate more efficiently.
Asset management reports can contain insights that leaders can use to optimise the business's assets and how efficiently these assets operate. Reports can also help businesses minimise the cost of lost, stolen or under-used assets. It can accomplish this by providing insights into vendors' or supplier's performance and compliance with legal and government regulations. This can help the business streamline its procurement and where necessary improve or expand on its supplier portfolio.
Asset management software benefits
Supply chain and procurement managers can use asset management tools to experience the following benefits:
Prevent unnecessary expenditure: Asset management programs accurately detail which assets the business can replace or repair in the event of accidental loss or damage. Because it monitors assets in real time, managers can efficiently monitor and utilise all their assets, including those that frequently or quickly change.
Keep assets in good condition: Asset management programs automatically track an asset's optimal service or maintenance dates. This helps keep managers aware of asset scheduling so they can arrange for maintenance without disrupting the team's workflow.
Track asset growth: As a business grows, its number of assets can increase and become more varied, so it can help track these changes and prevent confusion for those managing them.
Capture important details: Using asset management programs can help asset or inventory managers track details of an asset that standard spreadsheets don't capture. For example, it can list an asset's purchase price, vendor information, asset identification numbers and if any special purchasing discount or payment arrangement applies.
Reduce manual input: Often, managers manually input large volumes of data into a spreadsheet, so using a management software can save hours of effort while reducing the chances of manual errors.
Streamline audits: Having detailed asset information easily accessible to senior staff members can make the internal and external auditing process easier. When integrated with inventory management processes and physical asset checks, a business can better align its documentation with its assets.
Improve reporting: Accurate asset information can help a business generate more accurate financial reporting for internal and external stakeholders. It can show potential investors that the business has properly paid for and insured all its assets.
6 asset management program options
The following types of asset management programs exist to help businesses manage their resources:
1. Infrastructure software
Part of a business's infrastructure is its utilities, such as electricity and water. A sustainability manager can therefore use an infrastructure asset management program like dTIMS for Asset Management (Deighton Total Infrastructure Management System) to monitor an office's drains, pipes, cables and wiring to ensure everything is efficient, safe, economical and good for the environment. This kind of software can also remind managers of when scheduled maintenance takes place so they can appropriately budget for it and minimise disruption to the workplace.
2. Digital software
This type of software helps a business organise, store and control access to its digital media and content. Software like OrangeLogic can help IT professionals manage files, such as meeting recordings, building plans and legal agreements. It prevents individuals from accidentally losing or destroying these assets and also makes it easier for team members to find specific items or share them with the right team members. It also ensures that a business doesn't accidentally share confidential or copyrighted data with individuals outside the company.
3. Financial software
Part of a company's financial assets are its investments, which can be tangible or intangible. It can include any stocks, bonds and cash reserves that the business holds. Financial asset management aims to improve profits and reduce financial risks. Therefore, an accounting manager can use software like Titanium to track their debts, interest on debts and investments, tax obligations and market rate. They can also use it to manage employee contributions to funds.
4. Fixed asset software
Software options like Asset Guru help supply managers track fixed assets, such as the company's buildings, machinery and installations. As these assets may depreciate over time, tracking them can help managers schedule preventative maintenance and generate insightful data, such as a machine's production rates or speeds. It can also help ensure that the business complies with any occupational health and safety requirements governing its operations.
5. IT software
IT professionals or office managers can use software like Freshservice to manage hardware and software, such as shared computers and software subscriptions. This can help ensure the organisation regularly updates important information to the cloud so they can track, update and share it with others. This program can also help IT professionals update their software and remove any potential viruses.
6. Enterprise management software
Enterprise management software, such as Sage helps integrate and optimise long-term assets so they can continue to benefit the business. It considers documentation, inventory records and other important information concerning an asset and can include systems involving business intelligence, customer relationship management and treasury management systems. Enterprise management software takes a holistic view of a company's assets so that the business can visualise asset data, use it to generate documents and create productivity goals.
Tips for implementing software
The following tips can make it easier for asset, procurement and supply chain managers to integrate software into their workplace:
Start by defining your assets: You may have hidden or forgotten assets that are out of date and unaccounted for in your current asset management process. Before switching to using this type of software, make sure that your current asset list is accurate and that any asset data is error free.
Select compatible software: You can get the most value from your asset management system if it can integrate into your existing systems, such as your accounting and payroll systems. This can also help you cross reference data for possible errors.
Prioritise training: Team members can get the most value out of your asset management system and make fewer errors while using it if they're trained on how to interact with the system. Providing training can help employees familiarise themselves with the software before you implement it.
Develop policies and procedures: Creating and executing asset management policies throughout an organisation can help consistently account for and maintain fixed assets. Other asset management policies can include creating approval processes for any purchases, transfers and disposals.
Ensure your software impacts your return on investment (ROI): You can determine that your software is adding value to the business if it helps maximise your ROI for every purchase. This can involve following a more stringent maintenance schedule to prolong the lifespan of an expensive investment.
Have a clear objective and expectations: Knowing what your intended goal is for implementing a software can help you track the appropriate metrics and collect the right data. For example, if your goal is to reduce customer complaints, you can focus on ensuring that retail outlets have a constant supply of a certain product and that you more accurately predict demand.
Please note that none of the companies, institutions or organisations mentioned in this article are affiliated with Indeed.
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