Learning Zone

Why Asset Management is important

By Ross Jephson
22 January 2021

How to develop an Asset Management plan

Adopting the right asset management software for your business can boost your operation’s efficiency, increase safety and increase profits.

So how do you implement an asset management plan for your business? We recommend you follow these four steps…

1. Set your objectives

What is your company looking to do and how should objectives in the asset management plan help achieve this? When setting objectives, always make sure that they are SMART– Specific, Measurable, Achievable, Realistic and Time-bound.

2. Create a strategy

At this stage, we recommend you carry out an audit of your assets and create an inventory. When reviewing your assets, consider the following questions:

  • What assets belongs to the business?
  • Where are they?
  • What condition are they in?
  • What is the remaining life span?
  • What is the economic value?

Once you’ve done this, the next stage is to plan against potential risks to the business.

3. Manage risk

There are four main reasons why an asset can fail:

  • Unable to meet demand
  • Cannot maintain service levels
  • Becomes an economic failure – the operation costs exceed the cost of the asset
  • End of life – it ceases to function

Once completed, you’ll be able to measure the level of risk against the impact on the rest of the business. You can then prioritise which assets pose the greatest challenges to your business so they can be acted upon first – planning ahead to prevent that failure.

4. Monitor and review

Once you’re up and running, make sure you continue to monitor the efficiency and cost effectiveness of your assets. Accurate decisions can be made against your assets such as updating or amending maintenance policies, injecting cash into upgrades or investing capital into new assets.

How can software help me?

Over the years, a number of systems have been adopted by fleet operations to address their asset management needs. Whilst some software asset management systems provide key data and analysis capabilities, we find that they don’t always address your specific fleet needs.

In our view, the best asset management software for fleets are the ones that focus on vehicle asset condition and performance. They are aimed at helping you achieve defined performance goals and results by creating:

  • Faster return on investment
  • Measurable improvement in operational efficiency
  • Lower costs
  • Reduced administrative burdens
  • Higher levels of compliance
  • Better risk management

Ultimately, the system you choose must also simplify every part of fleet, asset and workforce management – from the financial overview of vehicles and equipment to policy, monitoring of drivers, technicians and shops.

These systems also address the complete lifecycle of assets, from acquisition to disposal, and incorporate all your fixed costs and variable operating expenses, as well as details of utilisation, maintenance and compliance.

Smarter fleet management software will help you and your business to keep up to date as asset management needs expand to require new insights and tools. And it is these insights and tools which will help you make decisions that result in improved efficiency, lower costs, higher vehicle and equipment uptime, and employee and customer satisfaction.

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