Avoid These 3 Problems With An Asset Register Stocktake

Problems occur with asset register stocktakes or audits every day and often this is because there is no efficient system in place or the time to complete the audit in a reasonable timeframe. There are tools and technologies that can be implemented to help avoid some of the most common problems.

Lost Assets

Audits are needed on a regular basis and when there are no definitive ways to take a stocktake, it can lead to lost assets. It may have been awhile since one was taken and therefore assets have moved, been retired into storage, or borrowed by another location. When everything is systematic and there are better processes in place, it can make it easier to identify where the assets are and what condition they are in. Try rolling audits.

Incorrect Counts

There's nothing more frustrating than getting an incorrect count. It may be as a result of not having a barcode or RFID to scan and therefore the counts are going to be off or the assets are misidentified. It's difficult to ensure different people count assets the same way every time and therefore a better system needs to be implemented.

 

Time is $$

Time is $$

Ineffective Registers

An asset register stocktake or audit needs to be the same regardless of who is conducting it, consistency is key. The problem is that different departments may be at different starting points and this can cause problems with reporting as well as from the operational versus finance standpoint. All of this can be eliminated with a stocktake that spans across the entire organisation in the shortest possible time. You can be sure that everyone is at the same starting point and that everyone receives updates when a a total stocktake or audit is taken.

Contact Reduxo now to learn how to improve your asset register stocktake or audit.

Using Asset Management Software to Minimise Opportunity Cost

Almost every choice we make comes with an opportunity cost. The definition of Opportunity Cost as stated on Investopedia states "...the cost of an alternative that must be forgone in order to pursue a certain action."  We are typically dealing with limited resources, and choosing to use them one way inevitably means forgoing the benefits of using them in the next-best way. If the opportunity cost outweighs the profits gained from using an asset in a particular manner, then your company is not necessarily losing money; however, your company is forgoing the opportunity to get more out of the asset. With the right data, you can estimate the opportunity cost of using your assets in a variety of ways. This will help you get a better sense of how much a project costs as well as helping you get more out of your assets.

The first step in determining the opportunity cost of an asset is to identify its alternative uses. In some cases, that could mean the use of an excavator in one site versus another; in others, this could mean maintaining a piece of land or building versus renting or selling it. The more options you consider, the more accurate your assessment of your operations' opportunity costs will be.

Next, you will need to valuate the alternative uses of your assets. In some cases, this data is best gleaned from your own records of similar assets' past performance. In other cases, this data can come from current research regarding different uses of assets similar to yours. At this point, you'll likely find that asset management software will come in handy for collecting data and presenting it in an easy to analyse form. Analysing the opportunity cost of alternative uses of your assets will help you make sure you're using them in the most efficient way possible. 

Once you've gotten a good sense of the opportunity costs involved with your use of your company's assets, it's important to keep this valuation up to date. Technological advances and other market events may change the value of alternative uses of your assets, resulting in dramatic increases in opportunity costs which you need to be able to track. Again, asset management software provides you with an efficient means of tracking the opportunity costs of the current uses of your assets.

Staying competitive in almost every industry requires getting as much value as possible out of every asset. Recognising the opportunity costs involved with the way you use your assets is one step toward using them as efficiently as you can. Because collecting and analysing a great deal of data is important to calculating your operations' opportunity costs, asset management software is generally very helpful for this task. We at Reduxo recommend using Sprocket; its advanced reporting system can easily collect and manage the information needed to calculate and update the opportunity cost of your operations.  If you don't have the resources to collect the initial asset information, we can assist with a physical asset audit.

Reduxo provides best-of-breed software solutions and services, contact us for more information about Sprocket and other services we offer.

Just Did a Physical Asset Audit? Here are Three Reasons To Do Rolling Audits

Get the stamp of approval!

Get the stamp of approval!

You can't get the most out of your assets unless you know where they are, how they're being used, and what kind of condition they are in. Physical asset audits are an essential part of enterprise asset management, and the information in them must be up-to-date if your organisation is going to manage its assets effectively. Keep an eye out for these three events, which can throw your asset register off balance and require you to update your asset management information.

Additions to your asset base can be a good thing, but when managed incorrectly they can also cause serious problems. If an asset is acquired through an improper procurement channel, or if somebody along the line forgets to record its addition, then you might not be aware that it has been added to your inventory. By making sure to adhere to addition policies and processes and update your asset management information whenever items are added to your inventory, can avoid purchasing the same asset twice because of mistakes like these.

Disposals are another event that can throw your asset management data out of whack. Failure to properly track disposals can lead to an asset being unavailable because someone mistakenly thought it was still available. The resulting asset shortage can result in embarrassment as well as costly delays. You can be sure that assets are replaced after their disposal by updating your asset management information whenever an asset is disposed of.

Transfers of assets, especially between far apart work sites, are a third event which must be promptly and properly recorded. A large part of asset management is ensuring that assets are placed at sites where your organisation can get the most out of them. This is most effectively done when you know exactly which assets are at which site or in which department; it is very easy to skew this vital information by failing to record asset transfers promptly and accurately.

The best way to keep your organisation's physical asset management information up-to-date is to perform physical asset audits on a rolling basis. Not only is the audit process itself more cost-effective to conduct frequently rather than once every few years, but the data the audit yields will also be of higher quality and the basis of good asset management. Reduxo specialises in providing rolling physical asset audits; contact us to find out how we can make the process easier and more efficient for your company.

Emergency Preparedness Starts And Ends With Asset And Facilities Management Software

Emergency Image.jpg

If you are looking to improve your emergency preparedness then a great place to start is with utilising asset and facilities management software or computerised maintenance management software (CMMS) that complements your ERP environment. Most emergency situations are unpredictable, but many can be prevented with adequate preparation. Some are caused by variables that are outside your control and the only thing that can be done is ensuring the emergency situation is controlled quickly with the least amount of damage and fewest number of injuries as possible. When the emergency situation is resolved and you are able to once again think about the future, your asset and facilities management software or CMMS will will be a tremendous help in the rebuilding process.  

Prevention is key. The time you take to conduct a thorough facility and asset audit will help you establish an accurate register of the state of your assets and facilities. This will help you catch assets or sections of your facility that may be in need of maintenance or repair. Implementing an ongoing maintenance program and routine rolling audits with the help of an expert will ensure that nothing falls through the cracks.   

In the unfortunate event that you have an emergency situation, asset and facilities management software will enable emergency personnel to respond in a more timely and efficient manner. With accurate data in your asset and facilities management software, emergency personnel will be able to use your program to better evaluate the circumstances and best way to respond. A more responsive crisis management solution will reduce the number of injuries, severity of injuries, and damage to your assets and facilities. 

Finally, dealing with the catastrophic after effects of crises and recovering from them is not easy emotionally or physically, but there will come a day when it is the right time to think about rebuilding the lives, assets, and facilities affected. Having a complete and accurate stocktake of your assets and facilities input into your asset and facilities management software solution will help you rebuild in several ways. First, your insurance claim will be processed in an expedited fashion because of the excellent organisational structure of your register and you can be certain that all of your losses are accounted for since you have an accurate register. Second, once you rebuild your facilities and purchase replacement assets you will be able to input their data into the solution. Third, there will come a day when your business grows beyond where it once was and your asset and facilities management software is scalable so you can add in your new facilities and assets with ease.

Thinking about emergency preparedness is disheartening, but not thinking about it is dangerous. There is some point to being aprehensive about crisis management; it helps us attempt to prevent what we can potentially prevent, prepare for the best possible emergency response humanly possible, and have a plan to rebuild the business and our lives after the fact. If you are considering improving your emergency preparedness and would like to speak with an asset and facilities management software expert about how to get started, please contact us so we can find a time to discuss your unique needs.  

Does Your Organisation Have A Physical Asset Stocktake On The Horizon?

A Physical Asset Stocktake or Audit is about as fun as a root canal, but there are ways to make it a little less painful. Unfortunately, laughing gas or a beer are not a viable option in this case (although they would probably work). Whether you are preparing for a financial audit or making the switch to a new asset and maintenance management system, having an accurate account of your asset base will help ensure the success of your project. 

Dentis.jpg

Fortunately, there are safe and legal ways to make a physical asset stocktake less painful and actually enjoyable. Ok, maybe "enjoyable" is a bit of a strong word to use, but if you are in the midst of a physical asset audit or stocktake then being sure you get accurate reporting on asset data for such things as planning routine maintenance, upcoming repairs, and necessary replacements will also ultimately improve clarity in the budgeting process for your finance department too. Knowing you are doing the stocktake correctly the first time will give you peace of mind and make it a little less painful. Two root canals are worse than one. . .making sure you have excellent data input will ensure you only have to do the stocktake one time.

Another way to make a physical asset audit less painful (and optimise the integration and utilisation of your upgraded systems. . .if this is the reason for the audit) is to hire an expert to help with the complete process. An expert can help ensure that your physical asset audit is completed accurately and in a timely manner the first time because they have a great deal of experience conducting these audits. You are an expert at running your business and the physical asset audit expert is an expert at running their business.

Thirdly, you can save yourself some time and money by detailing the scope of your audit before the physical asset audit expert arrives at your facilities. You can begin by deciding what types of assets you want to audit, what data fields you wish to capture, and other basics. If your records and documentation are out of date or inadequately organised then even spending a little time working to improve this situation will help the expert immensely. Your expertise and knowledge of your facilities and assets will be extremely valuable during the process.

Finally, if you are conducting the physical asset stocktake for a financial audit then you can help your organisation by migrating this data you have collected to your asset and maintenance management system. This will give you the opportunity to ensure your operations and finance departments are properly aligned. Think of it as a teeth cleaning while you're getting that root canal. . .a little extra time and it will feel so good. Your boss or someone in the other department might even buy you a beer for the extra effort (after work of course).

Physical asset audits are a necessary part of business. Eliminating them just is not going to happen. However, improving your experience is possible with the right approach and expert assistance. Once you have found someone you like working with it makes the process better and better each time. Partnering with someone you like working with. . .now that can be enjoyable. If you are looking for a physical asset audit expert that you like working with then please contact us to see if we might be a great fit.