How Business assets are strictly managed with ERP?
Asset management is very important for every business, because when the process is loosed, it is easy to lose and damage, and the efficiency of the use of assets cannot be calculated. Therefore, during digital transformation, the asset management process on ERP will optimize the gaps in the operation when all allocation, use, and maintenance activities are standardized.
Table of Content
1. Challenges in asset management of enterprises
The size of the business grows, which means that assets will also increase, and control faces many challenges.
Typically, business uses discrete or rudimentary systems will encounter problems in asset management as follows:
- Risk of errors and difficult statistics – Manual asset management such as data entry and archiving in excel that carry a great risk of being easily deleted, or edited without notifying relevant departments.
- Difficulty managing at scale – As a business’s assets increase, it becomes more difficult to manage. For example, when the staff is more than 500 employees, the data stored in the distribution of assets used in the excel file will make it difficult for the management department to find information, track maintenance, or replace it in a timely manner. , even the data doesn’t match.
- Consumption of resources – In order to obtain asset management data, the responsible department must allocate manpower and time to input data, manage quantity… The amount of time it takes for an employee to do the work. This work is quite long and sometimes overlaps with other departments.
With 3 causes of loss, risk in asset management, you can see that the traditional method is limited in many aspects. Therefore, businesses need to implement digital transformation quickly with a comprehensive management ERP system.
Continue to read below to see how ERP solves the problem of convenient asset management.
2. ERP solutions help businesses manage assets more efficiently
The Enterprise asset management process is optimized when implementing ERP, and each related department is sharing and controlling data on the same system.
To help you see the benefits of an ERP system over a traditional one, we will explain and compare the new purchasing and equipment allocation processes. The process is simply described when a request is received and a new purchase must be made.
| ERP | Traditional way |
| 1. Request for allocation is made directly on the system. 2. When the request is approved, the IT department and related personnel (such as HR, accountant, etc.) will receive the information. Support system to check inventory, or in other warehouses is available if need to rotate. 3. If there is no inventory, the IT department will create an order. The system supports creating 3 quotes, and at the same time linking orders for many approved requests. Orders are approved by management on the system. 4. Checking and confirming the inventory, allocating equipment to the requester. 5. The requester confirms receipt on the system | 1. Request for allocation is made according to the form and sent to all levels for approval. 2. Once the request is approved, the IT department will base on the tracking excel file to check the availability of the requested equipment. Thus, relevant personnel (HR, accountant, etc.) do not receive the information. 3. The specialized department conducts approval of the quotation via email or on paper, then places the order. 4. Check and update the tracking file 5. The requestors confirm on the handover note |
The ERP system has brought about a more optimized purchasing and distribution process than the traditional one:
- It strictly manages and seems difficult to delete or edit once the process is complete. Departments can be cross-checked at each stage, minimizing the risk of missing or losing equipment information.
- Linking and sharing information between specialized departments in a timely manner, supporting inspection such as the validity of supplier payment…
- Management levels also easily check the equipment status of the whole company, the approval work is also simpler accordingly.
- Report fast, accurate almost real-time, compared to management by excel, will depend a lot on the person entering the data.
- Raise employees’ awareness of asset protection, because all activities such as maintenance requests… are saved on the system.
When implementing the ERP system, the difficulties in the asset management process have been reduced, and operating costs have also been optimized. To experience the software, you can contact BEMO here.
