Enterprise Asset Management (EAM) is a method for organizing assets, maximizing investments, and improving business efficiency. It’s critical for organizations that require to get the most from their physical assets across the entire asset lifecycle.
If a company has assets, they’re probably looking at tracking costs, safety, and utilization of their assets. The main reason for these actions is to maximize the assets across their entire lifecycle so they can cut costs, improve productivity, and yield higher investment returns. But with the number of tasks required to ensure asset efficiency, an increase in operational costs and production issues are inevitable.
Enterprise Asset Management (EAM) helps solve these two main problems (higher costs and production problems) by assisting the maintenance team in managing the company’s physical assets over the asset lifecycle through asset tracking. The entire organization can use the EAM software to maximize asset performance to get a better return on investment (ROI) and cut costs
There are other reasons why you should invest in EAM software/services, but before we explore those, let’s first define what exactly EAM is.
What is EAM?
Enterprise asset management is a system for managing the asset lifecycle to increase its operational life. EAM software can minimize costs, enhance productivity and asset quality. It assists in achieving more flexibility in maintaining and operating assets while keeping expenses low and making sure that all assets are fully utilized from procurement to decommissioning.
A reliable EAM system is equipped to monitor the organisation’s assets, optimizeoptimise and track its maintenance activities. It should provide answers to all asset-related queries such as “Where is the location of the asset?”, “Whose using the asset?”, and “When does it require service or maintenance?”.
Why Do You Need EAM?
If the basic definition of enterprise asset management is not enough to convince you to get one, here are five popular reasons why successful businesses invest in enterprise asset management software:
- 1) Real-Time Asset Tracking
The most basic, but arguably the most important feature of an EAM software is asset tracking. It lets maintenance teams see the exact status of the assets on a real-time basis. Also, it helps in scheduling asset maintenance, which plays a vital role in improving an asset’s lifespan.
Any asset is never out of the maintenance team’s radar through the EAM software’s asset tracking feature. Because of this, it helps businesses avoid unnecessarily purchasing new assets and have complete information on their existing assets all the time.
- 2) Data Analytics
Data adds good value to any business’s growth and expansion. Therefore, if a company wants to evolve, it should collect valuable data and information to make the right decisions on unavoidable hindrances that it will encounter.
Same thing with assets. When asset management and tracking are implemented properly, valuable information will become always readily available. Reports from asset data analytics can be used by management to enhance their tactical decision-making regarding asset-related issues and problems.
- 3) Easily Detect Potential Issues
EAM software is designed to detect potential asset issues as it implements preventive maintenance regularly. Using the data it acquired from monitoring assets’ lifecycles, it can also offer accurate estimates regarding when a potential asset issue can arise. This also means that maintenance teams don’t need to manually track every piece of asset and equipment the company has for maintenance and checkup. The EAM software will automatically alert the relevant teams when there are problems with existing physical assets.
- 4) Reduce Inventory Expenses
EAM software can help businesses avoid dead-stock and overstock situations by improving their inventory management.
Inefficient inventory management can reduce revenue by forcing companies to overspend on assets they don’t need. When inventory management is streamlined, organizations can eliminate expenses due to human errors and also save money by avoiding unnecessary expenditures.
- 5) Higher Return on Investment
It’s any organisation’s goal to acquire more returns on its investments. With EAM, companies can achieve higher revenue by saving money on maintenance expenses, improving production efficiency, and increasing business productivity.
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