05 Feb Don’t ignore Asset Management
If someone were to describe this present era “volatile’ would not be a bad description. In fact the volatility of volatile spikes itself is at its highest level ever! These are tumultuous times from a geopolitical, commodity shocks, capital markets behavior and technology disruption angle. In such times one of the CIO’s top mandates is always cost reduction. No matter where the CIO’s are on their journey from cost center to strategic partner with their business partners, finding ways to reduce costs using technology will always remain critical.
This is where enterprise asset management comes in. InfoTech works with many large complex enterprise companies across the world. Every use case for enterprise asset management for these companies shows tremendous promise. This is not incidental. Enterprise asset management is one of those areas that a promise a lot of cost savings but which is often looked over for other trendier priorities. Our message to equipment and infrastructure heavy company CIO’s is simple: Do not ignore asset management.
Every time you answer the following questions for your CEO you will save money:
- Where are all my assets?
- When do I replace them?
- What is in my asset inventory? Why is it there? How have I been using it? How much has it been costing?
- Are my maintenance contracts and service level agreements (SLA’s) against assets all accounted for? Do I have visibility into their cost past present and future?
- Is my procurement and subsequent asset negotiation linked to my asset inventory?
The key to answering these questions lies in going from classic “Run till failure” asset management model to a proactive model using enterprise asset management software. Enterprise asset management software manages and controls the life cycle of an asset from specification to retirement in the most efficient way possible while optimizing and streamlining production maintenance and all related contracts. This gets you the best ROI on your equipment.
Here are examples of some changes post enterprise asset management implementation that translate to direct savings:
- Overstocking is eliminated
- By forecasting asset retirements within a specified time window you can negotiate in bulk leading to overall lower cost per replacement.
- Assets can be prioritized by their risk to business. By proactively monitoring and managing asset failure you dramatically reduce production and reputation costs for previously inevitable equipment incidents.
- Previously unavailable data will allow you to make better asset management decisions esp in procurement and maintenance strategies.
- An enterprise asset management implementation creates accountability. Accountability allows for an objective and efficient production culture. Every human resource as a result becomes more productive.
While these benefits are great the incoming Internet of Things trend will hit heavy equipment industries first as embedded chips allow equipment to proactively warn of imminent failure with reasons and generate unique valuable data for informed decision making. An enterprise asset management implementation will have you ready for this Internet of Things revolution.
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