Inventory and asset management is an important part of managing a product-based business. Your company relies on product sales in order to continue making a profit, so if your inventory and asset management system aren’t up to par, your workflow will suffer and your sales can decline.
Here are some big ways in which your inventory and assets impact your company’s finances.
Neglecting to Track Product Results in Lost Inventory
Going without an inventory management system is a good way to lose inventory. If you don’t know what you have on hand, how will you know if you’ve lost something? Whether your employees walk off with some items, or you simply misplace product, losing inventory isn’t something your business can afford. You’ll end up paying way more than necessary in buying duplicate products or purchasing more inventory just to replace what was completely lost.
“Going without an inventory management system is a good way to lose inventory.”
Forgetting to Maintain Assets Leads to Higher Turnover
When you don’t track how your assets are doing, it’s easier for them to break down before their expected lifespan. Going without an asset management plan makes it difficult to remember to send your assets in for maintenance. And assets that aren’t tuned up on a regular basis are much more subject to breaking down or becoming unsafe. This means you’ll be spending more on avoidable asset replacement costs in the long run.
Postponing Inventory and Asset Management Costs More Man Hours
Some companies put off implementing an inventory and asset management plan because they think it takes too much time upfront. However, by procrastinating setting up a management system, you’re actually spending more time looking for inventory items and necessary assets. When your team doesn’t know where something is located, they could spend hours each week just trying to find what they need. If each employee spends four hours a week searching for items, that could end up being hundreds of wasted man-hours each week.
Running Out of Time to Integrate Inventory Data Compromises Budget Decisions
Inventory management systems are a great way to help your company know what sorts of product sell well, how your team is performing, and what changes need to be made in the future. However, going without a management system means your team doesn’t have this information to work with. Your company has no idea what is performing well and what needs to be phased out. You’ll be left guessing when it comes time to work on your quarterly budget. And if you guess wrong, this could cost your company big time.
Asset Panda created a platform which is perfect for managing your assets and inventory. We know that your employee time is precious, so we created an intuitive system that your team can start using quickly. Our cloud-based software makes it easy for you to figure out from anywhere in the world exactly what inventory you have on hand, where it is, and how well it is selling. You’ll also be able to schedule asset maintenance during down times so it doesn’t interfere with top work hours.
One of our clients, ASM, uses Asset Panda for custom calculations in their inventory management. These calculations allow them to identify what chemicals are in each of the semi-conductors they manage. This, in terms, helps them know exactly when they need to refill each of their items, keeping them in top condition at all times.
Want to see how Asset Panda can help your team manage vital assets and inventory? You can try out our product free for 14 days!
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