Company Management and Asset Tracking

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Company Management and Asset Tracking


An asset tracking system will tell a company exactly what assets are on hand. The way for a company to get the upper hand is to invest in good asset management software. Asset tracking software will provide tons of information that management can use to effectively run the company. For example, management can run reports that will let them know what is in stock, what has sold and what needs to be repaired.

A good asset management system will provide the company with many different ways to track its assets. Each asset is bar coded and scanned into the system. This does not leave much room for manual mistakes, which will make tracking results even more accurate.

Why does management run these reports? It is the only way for them to tell if the assets have value. Every asset should have a value and continue to provide value for the company. If it does not provide value, then the company has to decide if it is worth keeping or not.

When it comes to physical assets, there are four things that management has to do in order to have a successful asset management system. First the company has to do a physical inventory of its assets and determine if they add value to the company. It is at this time that other assets are purchased. For example, the factory might need more equipment in order to keep production at a certain level. Or, possibly new equipment has to be purchased in order to keep up with the extra demand for product. Second, the company has to put their assets into production in order to make the best use of them. Third, the company then has to determine if it was worth getting the new equipment in the first place. Are these assets still considered to be assets? Or, are they a burden to the company because of added repairs? At this time the company establishes the worth of the assets and provides accurate tax information. Last, the company rejects assets that no longer have value to the company. All in all, this cycle has to be followed if the company hopes to remain profitable.

Companies need to follow this cycle and monitor its assets at all times. Via asset tracking software, the company can make decisions based upon new purchase, repairs and disposals. Sometimes equipment is not able to last a full cycle and has to be disposed unexpectedly. This can cause serious delays and company downtime. This means that the plant is closed until replacement equipment can be purchased. But, in the meantime the company loses money due to damaged or faulty equipment.

Purchasing the right assets can either break or make the bottom line. Managers have the responsibility of purchasing the right equipment to get the job done. They are also expected to work within a departmental budget. However, when they purchase equipment that is too inexpensive, the y run the risk of purchasing shoddy equipment. The bottom line is that management makes tough decisions when it comes to its physical assets. Without a good asset management system, this will be almost impossible to do. This is one of the best investments that a company can make.


Source by Darren Folkes

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