What is an Asset Management System? A Complete Overview

Using manual processes as an asset management tool can be time-consuming and lead to errors in the long run.

These errors and wasted time can cost a company money and prolong projects beyond the allotted time slots.

To remedy this, you must look for a digital asset management system. Asset management systems save you time and money and are also great for getting real-time data on your asset's vitals and operations.

In this blog, we will go over what is asset management. The asset management process and an overall view of the complete process. 

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What is an Asset Management System?

Starting with the most crucial question, what is an asset management system? Simply put, an asset management system is a process companies use to manage and monitor their assets.

The system consists of tools, techniques, and software to assist in achieving asset management policies and objectives.

Asset tracking enables organizations to operate more smoothly, save money, and make better resource decisions.

The process helps project managers improve efficiency and productivity within the site and save on costly repairs and maintenance activities.

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How Does an Asset Management System Work?

An asset management system integrates various processes to handle an organization’s assets throughout its lifecycle efficiently. 

Here’s how it typically functions:

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Track Assets

The system uses technologies like barcodes, RFID, or GPS to monitor each asset's location and status in real time.

This helps ensure assets are easily locatable and reduces the risk of loss or theft.

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Manage and Schedule Assets

An asset management system allows for the scheduling of regular maintenance and inspections, ensuring that assets are kept in good condition and any potential issues are addressed before they become significant problems.

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Manage Asset Lifecycle

The system tracks each stage of an asset’s lifecycle from acquisition to disposal.

This includes recording purchase details, monitoring usage, scheduling maintenance with an asset maintenance management system, and managing end-of-life processes like decommissioning or resale.

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Review Asset Utilization

The system provides insights into how often and effectively assets are used. This helps identify underused or overused assets and optimize their deployment.

This is important, especially in construction, where assets are expensive, overwork and wrong usage can lead to more bad than good for the project.

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Compliances and Risk Management

An asset management system ensures that assets comply with relevant regulations and standards and helps manage risks by keeping track of required certifications and safety checks.

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Analytics and Detailed Reporting

The system generates detailed reports and analytics on asset performance, costs, and utilization.

These insights support informed decision-making and help identify areas for improvement or cost-saving.

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What are Some Types of Asset Management Systems?

Asset management systems come in various forms, each designed to meet the needs of different organizations and industries.

Some systems offer detailed solutions for managing all aspects of asset management, while others focus on specific functions.

Here are some of the most common types:

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Enterprise Asset Management System

Enterprise Asset Management Systems (EAM) offer an integrated way of managing assets over their life cycles.

They are aimed at big companies with large portfolios of assets that provide features such as elaborate analytics, tracking of several sites, and total performance management.

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Computerized Maintenance Management System

CMMS software is specialized for handling maintenance activities. It automates work orders, enhances equipment reliability, streamlines maintenance processes, and ensures compliance with industry regulations.

This helps in reducing costs and improving inventory management.

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IT Asset Management

ITAM software focuses on digital assets such as hardware, software licenses, and cybersecurity.

It tracks asset usage, manages software compliance, and ensures proper license management.

This helps organizations optimize their IT resources and maintain security.

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Inventory Management

Inventory and Infrastructure asset management systems are often included in broader asset management solutions, but inventory management software can also stand alone.

It focuses on tracking stock levels, managing warehouse operations, and recording inventory, making it ideal for companies with specific needs related to stock control.

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Cloud-Based System

A cloud-based system can access information about assets regardless of geographical location.

Additionally, scalability is another characteristic of these systems; they offer real-time updates, support for remote supervision, and integration capabilities with other cloud service platforms.

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Manual Tracking System

Manual tracking systems involve using spreadsheets, paper records, or simple databases to keep track of assets.

While they are low-cost and easy to set up, they are prone to errors and inefficiencies compared to automated systems.

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What is Asset Management Software?

Companies use asset management software to manage and track their digital and physical assets.

The system collects asset data and analyzes it to give insights to make better decisions. 

For instance, if your company is acquiring equipment from different vendors, the software can follow up with them.

It will also tell you how they are performing, what schedules need to follow in terms of service, how long you expect them to last, and the total costs involved.

The system gives departments within an organization unified access, thus decreasing dysfunctionality.

Asset management system software enables organizations to work faster by streamlining asset tracking, maintenance scheduling, lifecycle management, and compliance monitoring. What are the benefits of an asset management system?

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How an Asset Management Software Works

Here are a few ways an asset management software helps an organization.

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Asset Tracking

The software collects and analyzes data on various assets, providing valuable insights into their performance and usage.

Project and equipment managers can use This data and insights when making decisions on equipment procurement and maintenance.

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Location Tracking and Management

The software ensures real-time location tracking and management. This way, you always know where each asset is.

This feature helps prevent loss and optimizes asset utilization across different departments and facilities.

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Timely Reporting

An asset management system can generate accurate and detailed reports. The asset management software supports timely reporting on asset status, performance, and maintenance needs. This helps in making data-driven decisions and assessing the cost benefits of asset investments.

Smooth Auditing

All in all, the software makes the audit process by keeping correct records and making the historical information easily accessible.

This eases compliance verifications and reduces administrative loads so asset management is done in line with the regulations.

How Do You Choose the Right Asset Management Software?

Choosing an asset management software that supports your organization’s objectives and needs is vital. The following steps can help you make the right decision:

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Set Business Objectives

When selecting software, it is essential to understand business goals clearly so you know what you hope to get from it.

For example, if one wants to reduce costs, improve efficiency, or enhance compliance, one should ensure that the software's features align with their overall strategy.

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Set a Budget

Ensure the budget contains costs beyond purchasing or subscription fees and includes ongoing expenses like maintenance, updates, and training.

For instance, free software may seem cheap at first. Still, it can show its weaknesses in the form of features that are not updated regularly, limited customization possibilities, and a lack of support services.

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Identify Business Needs

Evaluate your specific requirements about the size and complexity of the asset portfolio.

The perfect choice would be software with attributes and functions compatible with their demands, e.g., all-inclusive asset tracking, management of maintenance, or inventory control.

Usually, free software does not have such flexibility or scalability, leading to more problems than benefits.

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Assess Security Capabilities

Check if the software has solid safety measures to safeguard your asset information.

Look for attributes such as data encryption, user authorization levels, and conformity to appropriate law. 

‍Clue offers a comprehensive and intuitive equipment management solution to streamline asset tracking, maintenance, and optimization.

With Clue, you benefit from advanced security, reliable tech support, and cost-effective pricing, enhancing operational efficiency, reducing costs, and making informed decisions without compromise.

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Optimize Asset Management with Clue

Clue offers a comprehensive and intuitive equipment management solution to streamline asset tracking, maintenance, and optimization. With Clue, you benefit from advanced security, reliable tech support, and cost-effective pricing, enhancing operational efficiency, reducing costs, and making informed decisions without compromise.

Learn more⟶

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Tips for Improving Asset Management with Asset Management Software

Following these tips can enhance your asset management system's effectiveness.

This leads to improved efficiency, reduced costs, and better overall asset performance.

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Define Clear Objectives

Start by setting specific goals for what you want to achieve with your asset management software.

Whether improving efficiency, reducing costs, or enhancing compliance, clear objectives will guide your use of the software and help measure its success.

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Ensure Data Accuracy

Maintain high data quality by regularly updating and validating information in the system.

Accurate data is crucial for effective decision-making and reliable reporting.

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Implement Regular Audits

Schedule periodic audits to review asset records, validate data accuracy, and ensure compliance with regulations.

Regular audits help identify discrepancies and improve overall system integrity.

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Leverage Real-Time Tracking

Utilize the software’s real-time tracking capabilities to monitor asset location, usage, and condition.

This visibility helps prevent loss, optimize asset utilization, and respond quickly to issues.

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Utilize Predictive Maintenance

Take advantage of predictive maintenance features to anticipate potential equipment failures before they occur.

This approach helps reduce downtime and extend the lifespan of your assets.

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Automate Alerts and Notifications

Set up automated alerts for maintenance schedules, compliance deadlines, and other critical events.

Automated notifications help you stay proactive and avoid missing important tasks.

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Train Your Team

Provide comprehensive training for your team on using the asset management software effectively. Proper training ensures all users can leverage the system’s features and contribute to successful asset management.

Integrate with Other Systems

Integrate your asset management software with enterprise systems such as ERP, CRM, and financial software.

This integration streamlines data flow and enhances overall operational efficiency.

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Foster a Culture of Asset Management

Encourage an organizational culture that values and prioritizes asset management. Promote best practices and emphasize the importance of accurate tracking and maintenance.

Conduct Regular System Reviews

Periodically review the asset management system to assess its performance, identify areas for improvement, and ensure it continues to meet your evolving needs.

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Conclusion

An asset management system is an excellent way for project managers to optimize and oversee their assets.

They can help automate the workflows and provide a streamlined data management and decision-making solution.

Once you have decided to implement an asset management system in your organization, you must consider your business objectives and budgets and research different software to ensure that you find the best fit for your organization's needs.

If you are looking for recommendations, Clue offers a comprehensive asset-tracking solution that can help you benefit from advanced security, reliable tech support, and cost-effective pricing.

This will help you enhance operational efficiency, reduce costs, and make informed decisions without compromise.

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FAQs

What do asset managers do?

Asset managers oversee and optimize an organization's assets. They monitor performance, plan, and forecast asset needs. They manage risks and budgets and generate reports to ensure assets are used efficiently and effectively.

What is another name for asset management?

Another name for asset management is asset control, as the process revolves around controlling the working, location, and management of a firm's assets.

What is the difference between an asset management system and asset management software?

An asset management system includes the overall approach and processes for managing assets, while asset management software refers specifically to the digital tools used to track and manage assets.

What should an asset management system do?

An asset management system should track and monitor assets, manage their lifecycle, schedule, and track maintenance. They should also provide analytics and reports, ensure compliance and risk management, and integrate with other systems.