5 Common Asset Tracking Issues That Need to Be Addressed

There are many companies that are not equipped with asset tracking software. If a company is small-sized or has a low number of assets, the tendency is still to keep track of assets manually.

However, as business operations expand and the company grows, it gets increasingly difficult to keep track of assets manually. Before long, control problems start surfacing.

In this blog, we will explore some of the more common asset tracking issues that need to be addressed.

5 Common Asset Tracking Issues

1. Human error

Humans make mistakes even as they do not want to cause them, but errors happen. The traditional methods of asset tracking can be a wasteful work effort, especially in an organization that is deploying a lot of assets.

For instance, a task supervisor uses a spreadsheet and saves data locally in their work PC to track devices, equipment, and assets. The other team individuals are obviously not able to access the information they require.

Therefore, the spreadsheet method is not a foolproof method for asset tracking; on the contrary, it is prone to errors. As a result, overall productivity suffers.

2. Theft occurrence

Imagine a scenario when a specific tool is being searched. The warehouse is searched but the asset is not available. This is already a case of bad management.

A lot of money can be saved if proper asset management is carried out. Asset thefts or asset losses are a common occurrence that every industry is contending with.

If we consider a construction site, the security surveillance can be low or practically non-existent. This increases the chances of stealing incidents. This also means anybody can enter the working site and steal assets like tools, equipment, vehicles, etc.).

Equipment theft adversely impacts any business. When equipment is lost or theft occurs, the operations get affected and the project deadlines are hampered. Such losses also directly impact a company's productivity and bottom line.

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3. Maintenance Issue

Equipment maintenance is one of the oldest challenges for an organization. Take the case of the manufacturing industry where work is going on at full swing.

A machine halts suddenly and works grinds to a halt. This is the classic case of unexpected breakdown and stoppage of work as a result.

When the equipment is in good condition, it performs well and increases productivity also. Regular maintenance is required for running operations smoothly and saves the activity from any unexpected breakdowns.

However, there is a need for a dedicated team to look out for such activities wherein maintenance has to be performed regularly.

In the absence of asset tracking software, there could be consequences to face as an aftermath of careless decisions. Some of them are:

• Production loss
• Rescheduling of whole projects
• Material wastage from resources that have not been used yet
• Over time of labor due to downtime
• Disposal of machinery
• Equipment before the end of its useful life

4. Wrong Inventory Estimation

When it comes to stocking up on a particular asset, determining the right amount can be a tricky decision. For some industries such as hospitals, situations like out of stock or overstock can pose problems as medicines are expensive and if they get expired, it can potentially be dangerous for patients as well as for the hospital operations.

Hospital is part of a sector where inventory management is crucial as it concerns a matter of life and death. Generally, hospitals are places that are quite under-staffed as compared to the requirement.

In n hospital, one worker has several roles and responsibilities. At times, even hospital pharmacies run out of required vaccines and medicines.

This can lead to avoidable incidents. However, such cited cases can easily be avoided with the assistance of inventory tracking.

Inventory and asset tracking best practices need to be made mandatory so that hospital personnel can know in advance which medicines are out of stock and all medical equipment is working well.

Also Read: 7 Major Key Features of a Robust IT Asset Management Software

5. Resource wastage

Missing assets and equipment can have an adverse effect on a company and its operations due to lost labor-hours, work stoppages, and delayed project deliverables.

When a required asset is not found, operations can become inefficient or delayed as the people have to wait until a substitute asset arrives.

Here is an example to understand the impact. If a worker waits for 5 minutes and the entire crew has 100 workers, the organization loses 500 minutes per day. In effect, the organization is losing valuable work hours and consequently productivity.

Many organizations lack a proper workflow structure leading to hurdles and halting of routine operations. As a result, their resources are not utilized effectively and work orders are not completed on time.

How to address these common issues?

The solution to such asset tracking issues is an Asset Management Software.

It increases the productivity of equipment and organization. It enables real-time monitoring of the assets.

The asset tracking software informs about how many fixed assets are owned, the exact location of an asset, or its condition. It can give you notifications and alerts when an asset needs maintenance.

With the assistance of asset tracking software, the user can get all the required information about equipment and assets. It also keeps records of each asset and can inform you when the last maintenance was done and when the next maintenance is due. You can do maintenance scheduling activities without interrupting daily work.

The operating expenses can be reduced and revenues enhanced, without disrupting the day-to-day operations of the business. Restaurants and hotels that manage and track their assets in a proper manner build in a greater chance of stability, course correction, and revenue improvement.

Without a doubt, asset tracking software provides a huge relief in terms of managing the assets efficiently and effectively.

It captures each asset's crucial data and information on status, location, etc. by utilizing scanners to detect barcodes or RFID tags and providing accurate real-time data.

These benefits can grow the business very efficiently. The system offers a lot of other benefits as well.

Conclusion

According to Statista, the global market for fixed asset management software is forecast to grow from 3 billion U.S. dollars in 2019 to 5.2 billion U.S. dollars in 2024. As organizations are growing, they need proper asset tracking for the optimization of assets.

For any organization, increasing the Return On Investment (ROI) is a primary objective. In order to achieve that, an organization needs to increase productivity. To enhance productivity, you need an asset tracking software that helps to streamline the operations and eliminate the common issues.

If you want to implement asset tracking software in your organization, we will be happy to assist. You can sign up today and try our 14 days of a free trial.