Importance of Asset Management to Achieve an Increased ROI



Imagine having 200 vehicles in your fleets and only having trips worth 150 of them! 50 vehicles… wasting away with depreciation costs!

Nobody would like to invest much more than required - it’s unrealistic and unideal!


But how can you make sure that all your vehicles are working at the best of their capabilities? Through proper asset management systems!


So, if you want to bid adieu to wasteful assets in your fleet - because these unused ones are also more susceptible to theft - and want to make the best use of the ones you keep, continue reading! In this article, we’ll talk about the importance of asset management, and how you can use it to boost your business ROI!


What is Asset Management in Fleet Business?

Asset tracking in fleet management is monitoring and managing the location, status, and usage of assets within a fleet. These assets include, but are not limited to vehicles, equipment, consignment, containers, or even drivers - basically anything valuable to the business that can be tracked.


Asset tracking software uses GPS and IoT technologies to collect real-time data on parameters like location, speed, direction, etc. This information is then shared with a fleet management software, allowing fleet managers to have a comprehensive view of their assets' movements and activities.


The key objectives of asset tracking in fleet management are:


  • Location Monitoring: Fleet managers can track each asset’s live location, ensuring they are where they are supposed to be.

  • Maintenance and Repairs: Asset tracking allows managers to monitor asset’s usage and health. They can take the right maintenance measures to get the depleting ones back on track.

  • Utilisation Optimization: Analytical data helps managers see which assets are under or over utilised in the fleet.

  • Compliance and Safety: Asset tracking systems help ensure that assets are being used in compliance with regulations and safety standards. Fleet managers can monitor driver behaviour and ensure proper handling of assets to prevent accidents or misuse.

  • Inventory Management: In cases where the fleet carries goods or materials, asset tracking can aid in monitoring inventory levels, reducing stockouts, and optimising supply chain management.


Multiple Types of Asset Management

Just when asset management started to sound like something doable, we HAD to complicate it for you. Yes, there are two types of asset management. Let’s look at them here:

  • Asset Tracking: The primary purpose of asset tracking is to know where each of your assets are in real time. This is important because asset tracking can help you prevent consignment, vehicle, and other asset theft. You can manage where they are supposed to be to prevent unauthorised use and pilferage from your business.

  • Asset Use Management: This is the kind of asset management that when not looked into, leaves a huge invisible dent in your fleet’s ROI. See which assets need to be better allocated, or even the ones that are overused. The point is, neither do you want your assets to deplete away without use, nor work away to break downs.


What is Asset management ROI and Why is it Important?

When talking about asset management, the term asset management ROI holds strong precedence. It is basically understanding what ROI the business is getting from each of its assets and the investment made to manage those assets.


It reflects the revenue or value the business has gained from its vehicle, inventory investments, fleet management software investments, and other such things. Asset management ROI is crucial for measuring the efficiency of a company’s asset management practices.


But, why are we talking about asset management ROI? Because in the next section you'll see how an asset management system will help you get the most out of your fleet. So, it is important for you to understand that these management investments get a lot of returns as well.


How Does Asset Management Improve Fleet ROI? 

Effective asset management is the key to unlocking the hidden potential of your fleet. And by doing so, you will maximise the return on investment in the fleet’s assets and asset management.


By implementing a robust fleet management system like TrackoBit, you can transform your fleet’s operations and boost your business's bottom line at ease.


Here's how asset management drives a significant impact on your fleet's ROI:


  • Minimises Wastage: With asset tracking and resource optimization, you can bid farewell to wasteful assets or activities that lead to unnecessary depreciation costs, helping you save money and resources.

  • Prevents Theft and Unauthorised Use: Real-time asset tracking lets you know where each asset is, preventing theft. You can minimise unauthorised use and pilferage and safeguard your investments at ease.

  • Reduces Maintenance Costs: Asset tracking activates proactive asset health monitoring. By identifying maintenance needs before time, you can minimise breakdowns, saving on costly repairs and downtime.

  • Enhances Asset Use: Analysing asset usage data helps you identify under or over utilised assets. By reallocating assets efficiently, you can improve overall use and save money usually spent on unnecessary asset procurement.

  • Increases Productivity: Efficient asset management allows you to allocate assets to the right tasks, enhancing productivity and customer service.

  • Enhances Decision Making: Access to real-time data empowers fleet managers to make informed decisions, leading to better resource allocation and cost management.

  • Extends Asset Lifespan: Proactive maintenance and optimised usage prolong the lifespan of assets, reducing the frequency of costly asset replacements.

  • Improves Customer Satisfaction: With better asset management, you can ensure timely deliveries and reliable services, leading to higher customer satisfaction and retention.

  • Expands Profit Margins: By cutting unnecessary costs, optimising asset usage, and increasing productivity, your fleet's profitability and profit margins can significantly grow.

  • Enables Future Planning: Analysing asset management ROI helps you identify areas of improvement and plan for future investments strategically.

Summing Up

Asset use in your business is a crucial lament of understanding how well each resource is used in your business. Especially on fleet businesses, knowing if vehicles are going on enough trips wherein they are not sitting idle, but are also not overburdened is elemental.


So, what are you waiting for? Choose a fleet management software that can fulfil your asset management requirements today!


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