No matter the industry or sector, the process of management involved includes keeping track of value, depreciation, ownership, and location. The manager running this type of system would need to know what type of assets a company has, the value of those assets, loss of the assets specific to depreciation, theft, or even damage, and who is the official owner of the assets. Along with this, the manager would maintain some type of database to keep track of the physical location for assets. This allows a company to be in full operational mode, meet service and delivery demands, manage costs, and reduce or even eliminate any risk.
As you can see, asset management is critical to a company’s success. In fact, asset management is regarded a critical component of organizations throughout the world, specifically those dealing with stock portfolios or IT. Often, companies lose track of assets, which can be devastating to the business from the customer standpoint but also from a profit angle. For instance, if you company were selling computer parts to large corporations around the world, success of that company would depend heavily on knowing the exact parts needed, whether they were in stock, the current value, and whether they could be found quickly if not within current inventory.
Let us say a company received an order from a customer whereby 1,000 PCB assemblies were needed. Without having an efficient asset management system in place, the owner of that company might unknowingly sign a contract to deliver the order on a specific date. However, as workers begin to gather the various items needed to fill the order they find only 800 PCB assemblies are available, there would be serious risk of losing the order but more importantly, the customer and any future business.