The bottom line is that physical asset management gives the company an idea as to what they actually have. This will prevent them from missing out on opportunities which they could have jumped to when this presented itself.
One way of keeping track of the company’s assets instead of doing it by hand is by investing in asset management software. This will allow those in management to gain access to it whenever it is needed via the company’s intranet.
This can be done by bar coding everything similar to what is done in the supermarket. This will enable the in house team to just scan the item which not only increases accuracy but helps to save time on repeated inventories.
There are four stages which make up the physical asset management cycle.
First is planning and procurement. Here the company sees what is available and then assess what is needed. They will look at various suppliers and then buy the machine that is affordable and efficient.
In the second stage, those who use it have to use the equipment in order to maximize its productivity.
Third, is called financial management. Here, the company will see if it was worth getting the equipment. It also includes ensuring accurate tax, depreciation and other costs.
Fourth is disposal. If the machine is obsolete, it has to be replaced in compliance with environmental regulations.
Companies will be able to practice effective physical asset management by following the life cycle. Sometimes tough decisions have to be made in order for the company to survive.
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