How asset management software can boost productivity & reduce costs
Poor asset management is a huge problem in the construction sector. In fact, construction companies spend an average of 90 hours each month searching for their assets across different sites. This wasted time can have a major impact on operational efficiency and profit margins.
While there are numerous approaches you can take to address this issue, the most efficient way is through asset management software. In this blog, we'll look at how a digital system of this nature can both boost productivity and reduce costs.
Despite how forward-thinking the construction industry is in terms of building materials, design and methods, the McKinsey Global Institute’s Industry Digitization Index found that construction is the second least digitised sector in the world. This means that a large number of construction companies are still reliant on manual asset management systems (including pen and paper or simple spreadsheets) to keep track of their assets.
While this approach may work for smaller businesses, manual methods are quickly rendered obsolete as a company (and their number of assets) continue to grow. With a manual system, it’s impossible to know where your assets are at all times, especially when they're passed around workers and locations every day. Manual systems are usually dependent on a specific individual too, meaning it can easily collapse if the person is away.
Asset management software addresses these issues by creating widespread visibility across your tool park. With a digital system, the status of equipment is much more transparent, as everything is logged and up-to-date. It also removes the pressure from just one person, with asset management becoming the responsibility of those who use and manage the tools.
The administrative side of asset management can be extremely time-consuming. As tools are often spread across sites, warehouses and employees, it takes considerable effort to manage such a complex ecosystem.
When assets are managed manually, everything has to be done by one person. This means filling out and updating spreadsheets, checking and monitoring paperwork, ensuring compliance is up to date and organising inspections etc. These tasks require hundreds of hours of employee time, which could be better spent on areas where there is greater ROI available. Not only does this effect in-house administrative staff, but construction workers also have to spend time calling colleagues to track tools down.
With a digital system, asset management on and off site is far more efficient. Administrative staff don't have to fill out spreadsheets or monitor paperwork, which is all updated and managed automatically within the software. Locating tools takes minutes instead of hours, meaning workers can quickly locate the equipment they need with minimal delays.
As well as costing you time, a manual approach to asset management can also lead to expensive errors. If a Health & Safety accreditation or inspection gets missed (as can easily happen with a manual system), you could be on the receiving end of a heavy fine. When an asset management system is installed, the vendor you choose will help you to load all of your administrative assets into the programme. This includes:
Health & Safety certification
Employee certifications and training schedules
Vehicle tax due dates
Professional body membership details
Rental equipment return dates
Site cost allocations
These items will have dates assigned to them indicating when you need to take action, meaning inspections and deadlines are less likely to be missed. So, not only will an automated process save you time, but it'll also ensure you stay compliant with the appropriate legislation.
If you think a digital asset management system will benefit your business, check out Hilti ON!Track below. Alternatively, you can download our free productivity guide for advice on how to optimise your tool park through efficient inventory management.