For businesses large and small, managing and tracking assets is crucial for operational efficiency and financial health. However, not every asset is created equal and asset tracking costs money. Learning to differentiate between which assets to track and which not, enables you to protect your most valuable assets while achieving your budgetary goals, too. To identify assets to track, start by considering your assets in terms of Value, Usage and Compliance.
Prioritization by Value
Asset value isn't just about financial cost; it's about the potential impact on the business if the asset is lost, stolen, or damaged. Consider the following when prioritizing value:
Financial value: High-cost equipment, machinery, and vehicles are obvious candidates for detailed tracking. In the event of loss or incapacitation, replacing these items would be costly.
Irreplaceable or sensitive assets: Some assets have value beyond their monetary cost. For example, the loss of prototypes, research or servers holding proprietary data would be painful and could result in intellectual property theft or significant competitive disadvantages.
High-volume assets: While low in individual value, high-volume assets like large stocks of tools or mobile devices can represent a substantial collective investment. Tracking these can prevent inventory shrinkage and loss over time.
Prioritization by Usage
Assets that are valuable via usage include the following:
Critical to production: Assets that are indispensable to a core business function should be tracked. The failure of these critical assets could halt production, cause costly downtime and impact revenue. Achieving full life-cycle management through asset tracking makes good sense with these assets.
High mobility: Assets that frequently change location, such as vehicles, rental equipment, or devices used by field staff, are at a higher risk of being lost or stolen and should be tracked..
Underutilized or overutilized assets: An asset tracking system can reveal usage patterns, highlighting which assets are idle and could be reallocated or sold, and which are being overworked and may require more frequent maintenance allowing you to achieve operational goals and run more efficently.
Prioritization by Compliance
Many industries are governed by strict regulations that require detailed and accurate records of equipment and their usage. Tracking these assets ensures a business meets its legal obligations and avoids costly penalties.
Mandatory inspections and maintenance: Tools and equipment often require regular inspections or maintenance to meet safety or operational standards. Asset tracking can automate reminders for these checks, ensuring compliance.
Safety standards: In high-risk environments, such as construction or chemical processing, tracking assets ensures they meet specific safety protocols.
Of course, over time, as your business grows and changes, your portfolio of assets will alter too. Regular audits and reassessment will ensure that your asset prioritization list remains effective and up-to-date, enabling you to protect your most valuable resources for an optimal return on investment.