With any new initiative, it’s important to evaluate the cost vs. benefit to determine if the initiative makes sense. With asset management, there are significant costs to simply doing nothing, continuing to manage assets in an ad-hoc, unorganized, and untraceable way.
Costs and Issues Due to a “Relaxed” Asset Tracking Policy.
- Payment for goods never received
- Over-payment of taxes (Property, State, Local, Federal)
- Over-payment of insurance
- Over-payment of hardware and software service contracts
- Over-purchase of equipment based on inefficient use of existing assets
- Risk of data breaches due to misplaced or lost assets
- Risk of illegal disposal due to lost chain of custody
- Misplaced assets due to employee turnover
- Fines for improperly disposed hardware
- Required annual physical audit by 3rd party services provider
These very real costs average .65% to 3.2% of your total IT budget on an annual basis, which adds up to significant numbers as asset counts grow. Public, government and other highly-regulated industries are subject to even greater costs due to non-compliance penalties.
Benefits of Asset Lifecycle Management using AssetTrack 4
Using AssetTrack 4 and embracing the tracking process throughout an asset’s lifecycle eliminates these pains by allowing you to:
- Easily maintain a 3-way-match between your purchase orders, receipts and invoices so that you can eliminate paying invoices for goods you didn’t order or receive.
- Eliminate costs of “ghost assets” on your tax bill, insurance premium and services contract budgets.
- Maintain compliance with internally or externally-mandated asset management policies.
- Immediately respond to government or vendor audits by simply running the appropriate report.
- Maintain chain of custody throughout the lifecycle by tracking the asset in each stage whether it is a receipt of goods, IMAC move, transfer to another location or department, or retirement, for bullet-proof accountability and tracing.
- Summarize performance issues by model or hardware version, noticing trends or benefits that will allow you negotiate with vendors and make better purchasing decisions.
- Measure data accuracy rates by location, department or asset type, so that you can identify process breakdowns and make corrections in your ITAM process. This leads to significant improvements in data accuracy, which builds trust in the ITAM program as a whole.
- Ensure all assets are being used efficiently rather than laying dormant. Even equipment transitions due to employee turnover become simple to maintain.
- Minimize risks associated with data loss from device insecurity since you have a secure chain of custody.
- Eliminate costs of expensive physical audits by maintaining accurate inventory data through its lifecycle.
Costs of Manual Asset Tracking Methods
For organizations currently tracking assets using manual methods such as spreadsheets, perhaps even with tethered barcode scanners, have significant costs associated with not using automated systems.
- Inventories take weeks to complete instead of days. Critical resources are tied up performing remedial, non-value-adding tasks to the business.
- Data accuracy degrades due the manual data entry methods. On average, more than 50% of records in asset databases maintained manually have incorrect or outdated information, leading to distrust in ITAM systems.
- Process performance cannot be measured by user, location or department, giving no visibility to asset management as to why asset information has such poor accuracy.
- Integration with other line-of-business systems such as procurement, fixed asset, CMDB and ITAM databases is difficult and error-prone, requiring expensive development support and often leading to the spread of data inaccuracy enterprise-wide