Welp MagazineFor many manufacturers, greater efficiency is a dream come true. Learn how fixed asset software can enhance productivity and give you a competitive edge.
Maximising Efficiency: The Benefits of Fixed Asset Software for Manufacturing
Ineffective asset management can lead to numerous issues in the manufacturing sector. Manufacturers could face reduced productivity and efficiency, increased maintenance and repair costs, compliance issues, safety hazards, reduced asset lifespan, inaccurate financial reporting, and reputational damage.
Research has found that unplanned downtime is costing manufacturers 65% more in 2021-2022 than in 2019-2020. Whether planned or not, shutdowns can reduce production time by anywhere between one and 30% and cause turnover losses of millions of pounds annually.
This far-from-ideal situation can be improved through managing assets effectively. Learn how fixed asset software solutions for manufacturing companies can maximise efficiency and contribute a host of other benefits to manufacturers.
Benefits of Fixed Asset Software
Some of the many benefits of fixed asset software for manufacturing include:
Extend asset lifespan: Fixed asset software makes it easier for managers to track asset life and determine whether equipment or vehicles are working properly or require maintenance. In addition to using the software’s regular maintenance updates, managers can access asset records for ad-hoc inspections. Managers can leverage this information to plan maintenance proactively, optimising asset life, minimising breakdowns, and reducing maintenance costs.
Effective inventory management: Inventory is essential for manufacturing assembly lines, especially if a company has several factories in different locations. The absence of a centralised system can lead to severe operational issues, such as mismanagement, decreased productivity, the spread of misinformation, and loss of business. Managers can leverage fixed asset software to centralise operations and communicate accurate data to the relevant departments to support operational efficiency.
Accurate, efficient audits: Auditing plays a crucial role in identifying and verifying assets owned and/or rented by manufacturers. In addition to using fixed asset software to distinguish between machinery that the company owns and that which it rents, managers also know the status and location of these assets. Accurate audits have applications in manufacturers’ accounting, from calculating depreciation effectively to calculating taxation and ensuring compliance.
Enhanced decision-making: Fixed asset software provides manufacturers with accurate data on asset performance, maintenance, and depreciation in real-time. Managers and stakeholders can leverage this data when deciding on resource allocation, production planning, and capital investments. These data-driven decisions allow companies to enhance operational efficiency, potentially giving them a competitive advantage.
Harness the power of Fixed Asset Software
Relying entirely on manual fixed asset management in the manufacturing industry is time-consuming and open to human error and corruption. Fortunately, there are alternatives that can mitigate errors and issues. By harnessing the power of fixed asset software from FMIS, manufacturing businesses can take advantage of the benefits on offer while reducing downtime and increasing ROI.
