Asset management, whether digital or physical, means optimizing, maintaining, and keeping track of important company assets. Things like keeping an inventory system, coding your assets, and having a proper store are all part of the asset management system. But over the years, things have progressed from just coding your assets.
Integrating technology with asset management:
Technology has permanently changed the way we manage assets. We now have a wide range of software and hardware tools that can automate asset management processes and make them more efficient. Some examples of these technologies include:
– Radiofrequency identification (RFID) tags: These are tiny chips that emit radio signals and can be attached to assets. They help track the location of assets in real time and can also store information about the asset, such as when it was last serviced or its maintenance history.
– Asset tracking software: This software helps businesses keep track of their assets, including where they are located, who is using them, and when they need to be serviced or replaced.
– Mobile apps: There are many mobile apps available that can help with asset management, from apps that help businesses track their assets in real-time to apps that allow employees to request specific assets from the asset management system.
As much as these advancements are something to be excited about, there are better things on the horizon. Companies are now looking at ways to integrate blockchain technology with asset management. This would allow for an immutable record of an asset’s history and could help businesses track their assets more effectively. But before we go on any further with that, let’s go back to the basics of asset management.
What is physical asset management?
Physical asset management (PAM) is the management of physical assets throughout their lifecycle, from acquisition to disposal. PAM includes all activities associated with acquiring, installing, operating, maintaining, repairing, and replacing physical assets.
Why is it essential?
PAM is essential for any organization that owns or uses physical assets. Physical assets are a significant investment for most organizations, and effective PAM can help organizations maximize the return on that investment. In addition, PAM can help organizations improve safety, compliance, and environmental performance while reducing the total cost of ownership.
What are some of the best practices for physical asset management?
There is no one-size-fits-all solution for PAM, but there are some best practices that can help organizations improve their PAM programs. Some of these best practices include:
– Defining asset lifecycle phases: Organizations should define the various phases of an asset’s life cycle, including acquisition, installation, operation, maintenance, repair, and replacement. This will help ensure that assets are properly managed throughout their lifecycle.
– Creating an asset inventory: Organizations should create a comprehensive inventory of all their physical assets. This inventory should include each asset’s location, condition, age, and value.
– Developing an asset management plan: Organizations should develop a detailed asset management plan that outlines the goals, objectives, and strategies for managing assets. The asset management plan should be reviewed and updated regularly.
– Implementing asset tracking: Organizations should implement an asset tracking system to track the location and condition of assets. Asset tracking can be done manually or through the use of technology, such as RFID tags or asset tracking software.
– Creating standardized work processes: Organizations should develop standardized work processes for managing assets. These work processes should be documented and followed by all employees who are involved in asset management.
– Establishing performance metrics: Organizations should establish performance metrics to measure the effectiveness of their PAM program. Some common performance metrics include Asset utilization, downtime, and repair costs.
Yes, asset management has forever changed how we look at and track our assets. As these practices progress to the next level, companies will have no choice but to adapt. However, there are some risks associated with physical asset management. Here are a few of them:
– Compliance risks: Organizations may face compliance risks if they do not properly manage their assets. For example, if an organization fails to maintain its assets properly, it may be subject to fines or sanctions from regulatory agencies.
– Safety risks: Organizations may face safety risks if they do not properly manage their assets. For example, if an organization fails to inspect its assets properly, it may put employees at risk of injury.
– Environmental risks: Organizations may face environmental risks if they do not properly manage their assets. For example, if an organization fails to dispose of its assets properly, it may contaminate the environment.
Despite the risks associated with physical asset management, the benefits outweigh the drawbacks. PAM is essential for any organization that owns or uses physical assets. PAM can help organizations improve safety, compliance, and environmental performance while reducing the total cost of ownership. In addition, PAM can help organizations maximize the return on their investment in physical assets.
