Posts tagged asset management
Everyone supports being “green” today and exert much effort to assure that corporate policies reflect decisions to that effect. We have green products, green buildings, green parking areas designed to control runoff and create landscapes of wildflowers unto a beauty of their own. And so on.
One area often overlooked is a company’s large amounts of inventory of unused and underutilized assets. Steps need to be taken to determine what assets can be refurbished, repaired, replaced or recycled. It takes a hand’s on approach to accomplish, someone has to get in there and make those decisions. Much of what is found could be considered “junk” and disposed of in a green manner. Working with a recycler in your area you may be able to actually return dollars to the bottom line for metal. In one case, we negotiated a price with a recycler for mixed scrape and returned better than $6,000.00 to our customer.
Generally found are a number of good usable assets truly no longer needed by the company, these assets are available for sale and generate additional income. Perhaps consider a charitable contribution to an organization for a tax write off. Many of the assets you may want to redistribute internally, there you have the greatest corporate savings opportunity through cost avoidance. Why buy new when you already own. The first year savings produced can be as little as 10% to as high as 30% of the annual expense and capital costs budgets.
To accomplish for your company, a process is available through Centennial Associates, Inc. to manage such a project. A few minutes of your time is required to review what we do to “help get your ducks in a row”. For a free consultation call 585-671-0544.
I recently came across a white paper from Knowledgestorm published by Mr. Edward R. Flaherty, CEO of TrenStar, Inc. regarding -finding the ROI in your asset tracking initiatives. Flaherty contends that it is people, process and technology as the balance in the implementation of an asset tracking solution. This caught my attention as we have stated in our literature that Centennial has the people, process and technology to provide customers cost effective inventory services.
Mr. Flaherty states that best practices and proven processes combined with technology are the keys to developing successful and sustainable asset tracking and management programs. He continues with “but the real value of a well designed tracking solution is the information it brings to your organization. To truly optimize your investment, you need to be able to capture and analyze the data over a period of time and then be willing to commit to modifying your business processes when the data tells you that there’s a more cost effective or efficient way to operate.
Selecting Centennial Associates, Inc. as a business partner will speed implementation of your asset management solution by providing data collection services to populate your database with accurate information. Leveraging that information will quickly enable the management team to take action where opportunities for business process improvements are identified and shorten the path to generating a return on investment.
In short, it’s the synergy created when you bring together the right people, processes and technology for your particular initiative that will help ensure your success. That’s the first step in getting a measurable ROI.
You can’t turn on the news these days without hearing about how the economy is affecting one thing or another. I would like to take a radical glass is half full approach and look at how today’s economy could potentially have a positive impact on something – asset tracking. We all know budgets are tight and a lot of new equipment purchases are being delayed. Isn’t that the perfect time to do an internal inventory of the equipment you already have?
Let’s look at the objectives of an asset tracking program. First, it should make a company more efficient – allowing them to know where a specific piece of equipment is and other pertinent information, i.e. maintenance information, etc. Now look at the alternative – companies spending thousands of dollars in manhours alone searching for lost assets; purchasing unnecessary replacement equipment only to find the “lost” equipment later. In addition, unused assets may be an unnecessary tax liability and cause a company to overpay insurance premiums.
Implementing an effective asset tracking program is not terribly difficult. Different technologies are available, i.e. bar code and/or RFID depending on the needs of your specific company. Centennial Associates with MetalCraft labels help companies implement an asset tracking program.
We all need to be careful about how we spend our money these days. Companies with an effective asset tracking program will be ahead of the game when the economy turns around (and, yes, it will turn around). And seriously, who wouldn’t want that?
Reprinted with permission MetalCraft Blog Wednesday, August 19, 2009
Organizations need automated asset recording, tracking and management in this uncertain environment.
For the past several years of economic uncertainty, organizations have especially tried to account for and exploit their investment in physical assets. Consequently, they have turned to automated asset recording and tracking (among other business intelligence tools) to diminish the cost associated with asset management, to lower risk, while minimizing time needed to properly report information.
With diminishing workforce numbers, in physically dispersed locations and other active organizational changes plus stricter control requirements, manual processes to track physical assets may be unacceptably prolonged, protracted and even inaccurate.
- Manual processes are time-consuming — In a dynamically changing environment, it is challenging and time-consuming to manually update the asset database every time a new piece of hardware is purchased, installed or removed or a hardware item changes. Without recurrent updates, the utility of the information about those assets declines in significance and simply put…becomes less useful.
- Management reports and decisions—Asset managers can typically avail themselves of a fair amount of asset records – but conscientious analysis of that data is key for taking important actions. Up-to-date counts of physical assets, age, condition, cost and value analysis, are essential.
- Manual processes are costly — Ensuring that asset data is correct and consistent can entail a lot of procedure and effort, both to initialize the process and more importantly to update it periodically. This effort can involve significant time and could be rather costly.
- Need for a single, accurate asset database — It’s important that organizations maintain some central asset management database to store information of various kinds – even if departments or divisions also maintain their own data This information is critical to make strategic decisions for the entire organization including efficient asset management, accurate planning for upcoming projects, and for identifying and extracting potential asset savings.
As a result of external uncertainties and desire for greater understanding of and control over physical assets, organizations should move to automated asset tracking to optimize asset levels, reduce risk and manage or reduce asset management costs.
If you would like Asset Management Trends to cover a particular issue you’re wrestling with, please let us know.