Asset Management and Its Benefits

Asset management: Definition and benefits

Asset management is the process of developing, operating, maintaining​, upgrading, and disposing of assets in the most cost-effective way possible. Since assets, equipment, and vehicles are the backbone of your business, it is crucial to keep track of them and make sure none of them get overlooked. Keeping on top of asset management with specific metrics is crucial to productivity, efficiency, and cost control. 

Whether you’re trying to get better visibility into equipment in general, want to improve asset utilisation, or get a better overview of maintenance costs, a computerised maintenance management system (CMMS) can help you manage assets, streamline the maintenance processes, and make for easier overall management and planning. Integrated asset tracking and GPS technology is one such CMMS system, which can offer a greater depth of data – and security—than barcodes and RFID tags.

How asset management works

Through the simple and quick installation of small, mountable asset-tracking hardware, you can easily monitor and track equipment via a laptop or smart device. By using a centralised GPS equipment tracking solution that integrates with existing systems, businesses can consolidate all the data from their physical assets (including trailer tracking)—regardless of make, model or manufacturer—into one place in order to streamline asset management. In addition, businesses can achieve full asset visibility, including location, current status, and usage history on a single, web-based dashboard that enables fast search and tag filtering capabilities.

Asset management for unpowered assets

It's common to focus on vehicles and other powered assets when it comes to implementing GPS-based telematics for tracking purposes. Unpowered assets (i.e. generators, tanks, gear boxes, tools, dumpsters, shipping containers, trailers, and any other equipment that cannot run under its own power supply) are just as vital to fleet and company success. 

When it comes to asset management for unpowered assets, you can use the same telematics-based GPS technology that you use to monitor powered vehicles. Keep in mind that the GPS device must have its own power source, whether that's a rechargeable or one-time use battery with a long battery life. It must also be rugged enough (weatherproof and waterproof) to withstand any extreme conditions the asset that it’s monitoring might encounter. By implementing GPS tracking, your organisation can stay informed on a range of asset-related conditions, from temperature changes and door openings to vibrations or movement.

The benefits of asset management

Let’s take a closer look at the top potential benefits of asset and equipment tracking for any business.

Utilisation and inventory management:

As your fleet grows, the number of assets you manage increases. This can prove challenging for your administrative staff, particularly when it comes to asset tracking and inventory management since it’s easy to lose an overview of the assets your company has.

GPS-based tracking software helps with asset management because it enables you to get a better sense of which assets are being used, at what location, and in what way. It can also highlight which assets are operating at optimal productivity, and which aren't. This type of full asset visibility improves your resource efficiency and bottom line, and enables you to:

• Identify assets that can be sold or repurposed elsewhere
• Track asset usage by project to improve cost analysis
• Know when specific assets are in use, and if it’s in the manner for which they’re intended
• Get a centralised, comprehensive view of all data to improve asset utilisation
• Use utilisation reports to learn how often assets are used across geographic locations
• Make more informed decisions around renting additional assets vs. redeploying underutilised, owned assets
• Simply decide what you want to monitor and how often you want the GPS asset tracker to report depending on your business needs.

Security:

$650 million of high-cost construction machinery is stolen from work sites around Australia each year.1 One stolen asset can lead to significant replacement costs, lost opportunity costs, unplanned downtime, and customer and employee frustration. Whether standalone, or attached to a vehicle, your fleet equipment requires the same protections and precautions as your fleet vehicles. Investing in GPS tracking technology can provide added asset security, whether to deter thieves from stealing or to locate missing assets. It also offers:

• Near real-time notification when an asset is used during unauthorised time periods or off-hours
• Near real-time notification if an asset is moved or towed
• Near real-time notification if an asset is taken outside specified geofenced areas
• Ability to locate assets and assist in theft recovery using breadcrumb tracking
• Ability to leverage instant alerts to immediately notify the police
• Ability to see which driver’s fob was used to start the ignition if a driver steals a vehicle connected to non-powered equipment. This information can then be passed on to authorities
• Digital backup of stolen asset data for proof of ownership in filing a claim

Maintenance:

Poorly maintained equipment and vehicles age faster, requiring replacement 50,000 miles before comparable regularly maintained vehicles or pieces of equipment.2 This is why proper asset management is one of the most important steps you can take to maintain fleet productivity and profitability. 

According to Amin Amini, Associate Director of Global Solution Engineering, Verizon Connect,

“The whole point of preventative maintenance is to maintain that lifecycle and get the most out of your assets. You need your tools, you need your vehicles, you need your machines to be at a 90% or better uptime, so you can make sure the job is getting done and getting done on time.”

Deploying a GPS-based asset tracking solution for asset management can help mitigate maintenance issues by getting ahead of them before they happen, including helping you to:

• Reduce costly downtime and minimise job stoppage via preventive maintenance
• Achieve proactive, integrated maintenance management via diagnostic alerts
• Improve maintenance scheduling accuracy based on metrics (e.g. engine hours)
• Hold verified, paperless inspections to ensure all equipment is in optimal condition
• Create alerts for parts when they need replacing

What to look for in an asset tracking solution

When investing in GPS tracking technology for asset management, it’s important to look for solutions that provide comprehensive features that work with your unique needs. Here are a few things to keep in mind:

• The ability to track powered AND non-powered assets on one system
• A platform that is intuitive, comprehensive and easy-to-use
• A solution that seamlessly integrates with your existing systems, fleet management technology and other software (like OEM factory-installed telematics)

With the right GPS-based asset-tracking solution, your business can run more efficiently.

Verizon Connect has extensive experience helping businesses operating in all industries to improve productivity, safety, and security both on job sites and on the road. Our asset tracking solution allows businesses to monitor heavy equipment, improve asset utilisation, and reduce the risk of theft and unauthorised usage.