3 ways to counter financial losses through smart asset management

April 5, 2024

Today’s workforces aren’t just remote; they are spread across the globe. This presents a challenge for IT teams to efficiently procure, maintain, and track dispersed IT assets, including hardware and software especially when the number of devices owned by remote or office employees continues to increase steadily.

Without a robust smart asset management strategy, companies face financial risks due to a lack of visibility, unplanned downtime, and rising maintenance costs. Mitigating financial losses in companies through smart asset management requires adopting strategic approaches specific to modern business challenges. Whether through optimizing resource allocation, reducing operational costs, or improving asset utilization, strategic asset management serves as a foundation for financial stability in companies. Leveraging technology solutions and strategic practices is essential to counter financial losses, enhance competitiveness, and drive sustainable market growth. The global asset management market size was valued at USD 373.69 billion in 2022 and is expected to exhibit a compound annual growth rate (CAGR) of 34.7% from 2023 to 2030.

Outlined below are three practical strategies that companies can adopt to safeguard their finances and optimize asset utilization.

1. Data-driven decision-making

In this age of big data, utilizing analytics is important for informed asset management. By utilizing advanced analytics tools, companies can extract insights into asset performance, lifecycle trends, and maintenance needs. Predictive analytics allows for proactive maintenance, anticipating potential failures, and reducing downtime.

Deloitte's research indicates that companies adopting predictive maintenance experience up to a 25% reduction in maintenance costs. General Electric (GE), on the other hand, successfully implemented predictive maintenance across its industrial equipment, saving millions in repair costs annually by analyzing real-time sensor data.

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2. Integrated asset tracking systems

Comprehensive visibility into asset locations, status, and usage is foundational for efficient asset management. Integrated tracking systems provide centralized platforms for inventory management and maintenance scheduling, reducing errors and optimizing resource allocation.

Amazon utilizes RFID technology in its warehouses to track inventory movement accurately. This technology has enabled Amazon to streamline its operations, reduce inventory discrepancies, and optimize inventory levels. A study by VDC Research estimates that RFID implementation can lead to a 50% reduction in inventory shrinkage.

3. Lifecycle management and optimization

Proactive lifecycle management ensures efficient resource utilization from acquisition to disposal. Virtualization and cloud computing maximize asset utilization while reducing operational costs.

VMware's virtualization solutions helped a financial services firm cut hardware and energy costs by 50%. Siemens' comprehensive lifecycle asset management strategy resulted in substantial cost savings over asset lifespans.

By implementing these three strategies — data-driven decision-making, integrated asset tracking systems, and strategic asset allocation — companies can effectively counter financial losses and optimize asset performance.  

How Velory can help

The journey to smart asset management journey could be quite challenging without the right asset management partner and skillset. That's where Velory steps in, providing a platform that integrates asset management with a user-friendly store interface, simplifying the journey from asset acquisition to retirement. With Velory, you gain access to a centralized solution that empowers your team, automating asset management, tracking, vendor management, device retirement, and renewal processes, hence, helping you manage your assets in the most efficient way possible.

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