How asset management software can boost productivity and reduce costs

Poor asset management is a big problem in the construction sector, eating up considerable time for your employees and increasing costs across your operations.

Construction companies spend an average of 90 hours each month searching for their assets across construction sites. This wasted time can have a major impact on operational efficiency and, ultimately, profit margins.

While there are numerous approaches you can take to address this issue, the most efficient way to solve the problem across your business operations is through asset management software. In this blog, we will 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. This is because this type of system creates a real lack of transparency within your toolpark. With a manual system, it’s not possible to know where your assets are at all times, with tools slipping out of sight easily as they get passed around workers and locations during day-to-day operations.

Usually with a manual system, asset management becomes dependent on a specific individual. If they are away for any reason (such as illness or holiday), the system can easily collapse with nobody else having any idea where assets are.

Asset management software addresses these issues by creating widespread visibility across your toolpark. 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 on an individual, with asset management becoming the responsibility of those who are using the tools as well as the person in charge of managing them.

The administrative side of asset management can be extremely time-consuming. As tools can be spread across sites, warehouses and employees, using a manual system to manage such a complex ecosystem is always likely to take considerable time and effort.

In a manual system, everything has to be done by an individual. This means filling out and updating spreadsheets, checking and monitoring paperwork, ensuring compliance is up to date and organising inspections (as well as a host of other tasks). All of these require hundreds of hours of employee time, which could be better spent on areas where there is greater ROI available.

As well as the time being spent by in-house administrative staff, construction workers also have to spend valuable time tracking down equipment within a manual system. When a worker needs an item of equipment, without a digital system they are forced to call around to try and locate what they need, which is not an efficient way to work.

Through a digital system, asset management both on and off-site is far more efficient for all concerned. Administrative staff no longer have to fill out spreadsheets or monitor paperwork, which is all updated and managed automatically within the software. In a digital asset management system, locating tools takes minutes as opposed to hours, meaning workers can quickly locate and access the equipment they need for each job with minimal delays.

As well as costing valuable time, unfortunately 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 in a manual system), you could be on the receiving end of a heavy fine, which could have been avoided easily through a more efficient system.

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

All of these items will have dates assigned to them, which indicate when you need to take action, avoiding inspections and deadlines easily going by unnoticed. This reduces the amount of time and effort you need to spend monitoring administrative renewals, reducing unnecessary employee hours while ensuring you stay compliant with the appropriate legislation.

Digital asset management software can help reduce costs and boost productivity across your operations, by reducing wasted staff hours and increasing the speed at which workers can find and access tools. By investing in this type of system, you can save time and money, helping to reduce costs and increase profitability.

Download our free guide on how to increase productivity for more helpful advice on how to optimise your toolpark through effective and efficient inventory management, promoting improved productivity across your operations.