In business, time is money. This old adage is applicable today as much as ever. If your business deals with assets such as equipment, keeping on top of asset inventory and maintenance is key to your bottom line. The list below looks at how an equipment asset management (EAM) system can save you money and time.
- Establish a preventative maintenance schedule - An EAM system uses inspection data to help you set up preventative maintenance schedules. Preventative maintenance focusses on preventing equipment problems from ever happening, which prevents unscheduled downtime and expensive reactive fixes. You save money by eliminating costly emergency repairs, improving equipment uptime, and increasing asset longevity through effective preventative maintenance, condition monitoring, and predictive upkeep.
- Improved Customer Service – without the costly and unproductive downtime, responsiveness and reliability increase resulting in more satisfied customers, which will bring more sales.
- Increased Safety = Increased Savings – With an EAM system you will have inspection and maintenance histories, detailed checklists, and look-back analysis which facilitates safety, corrective actions, and process improvements that can prevent costly accidents or recurrences.
- Get Rid of Paper Files and Organize Your Asset Portfolio – knowing exactly what assets you have by assigning them to a physical location and all documents to an association you will be able to manage documents more efficiently by electronically capturing invoices, receipts, requests for bid (RFQ), warranty coverages, or purchase orders. By utilizing the same electronic filing system across all departments, you will eliminate costly and inefficient redundancies and reduce administrative overhead.
- Understand Asset Value – by knowing exactly what assets you have, where they are, and their purchased & depreciated value, you can accurately assess the total value of those assets. Understanding the total value of your assets plays a critical role in development strategies and recovery asset processes. The first case yields the potential to attract additional investors and increase your overall organizational value. The second case will give you an accurate representation of what your asset recovery strategies could potentially yield.
- Improved Asset Utilization – Equipment asset management systems allow you to know exactly what assets you have, where they are located & what their status is. Therefore, you will never purchase more equipment than you need and you can utilize assets much more efficiently.
- Increase Operational Efficiency – moving away from managing assets in spreadsheets or other inefficient systems allows you to gain control over the condition & status of your assets. Reports are generated within seconds which give you information about the health of your equipment at any point in time. Creating reports digitally greatly reduces administration costs and costly, ill-informed decisions due to poor data quality.
- Capitalize On Lower Insurance Premiums – Staying claim free, insuring multiple assets, understanding your asset value, and maintaining safety can all control your insurance premiums. EAM systems offer timely inspections, asset inventory, and preventative maintenance scheduling which all lend to keeping your insurance premiums as low as possible.
- Asset Inventory Control - the physical verification as well as tagging of assets prevents loss through theft, saving you money on replacement costs.
- Reduce the Risk of Fines – EAM systems make inspections timelier and accurate which will reduce the likelihood of fines from outside inspection agencies for non-compliance. Furthermore, any bad publicity that might occur as a result of these fines can be avoided, which could incur in loss of profits due to consumer boycotts.
If you’re using pen and paper, or excel spreadsheets to manage your equipment, you’re not keeping competitive and there are probably a lot of costs in terms of money, time, service, organization, and risk that you are not seeing. Although an initial investment is required to implement an equipment asset management system, the time and money saved by utilizing the features of an EAM system will see a return on your investment in a relatively short amount of time.