Asset clutter is a problem for businesses around the world. For example, according to research by Telsyte, Australian businesses lose an average of $4.3 billion worth of assets per year, which is the equivalent of losing 3 million computers. Businesses should understand why these losses occur and how to reduce them. Every lost item costs money and adds work to people. In this article, we will introduce you to the most common reasons why businesses lose assets and how to avoid these situations using modern technologies and processes.
1. Irregular inventories and outdated procedures
Many companies still do inventories the old-fashioned way. They print out a list of goods or assets and go from shelf to shelf or office to office, visually checking things and crossing them off with a pencil. This may work in a small office-based business. But if the company sells goods, stores tools, or runs a manufacturing operation, the inventory takes time and increases the risk of employees making a mistake.
Because a manual inventory takes a portion of the business down for days or weeks , companies tend to postpone it. And with each inventory that is postponed, the risk of assets being lost in the meantime increases.
Companies are now making laborious inventories easier with technology. For example, in the barefoot shoe e-shop Bosonožka, manual inventory of 30,000 pairs of shoes used to take a month . After the introduction of barcode readers connected to the warehouse system , the inventory can be completed in 2 days . Employees walk through the warehouse with readers that navigate them around the warehouse, read all the codes, and the system then matches the goods with the stock in the software.
These technologies are increasingly being used for inventories of assets other than goods. For example, companies assign barcodes to tools or office equipment and simply walk around with a smartphone during inventory and scan the codes.
2. Poor or non-existent records
Many companies only record their assets in the form of accounting records, which are required by law as part of tax records or accounting. However, these are only used for tax purposes and provide minimal oversight of assets .
The asset accounting does not include, for example:
- current location,
- usage history,
- service history
- or expiration date.
As a result, companies have an idea of what assets they own. But they have no idea where they actually are and what has happened to them over the years . If the assets are lost, they will at best discover them during an inventory, at worst when they need them.
Companies that want to keep track of their assets handle records by assigning a registration number to each item and writing down in a table every time the status changes who is using the item or where it is located. Some companies automate records by marking files, tools, chairs and other assets with barcodes that they scan with a mobile phone or a reader connected to the records system.
The advantage is that these solutions are applicable in most fields . For example, this is how they are used in an accounting office: "Some clients still deliver documents to us in paper form. After their digitization and the end of the accounting period, we move these paper documents to the archive. We use simple software to manage it, where each archive box has its own barcode and its own position. We know exactly when the archive box was created, where it is located and how it was manipulated," says Milan Bančanský, IT director at the accounting and tax office ASB Czech Republic.
3. Frequent use without clear rules
Assets are often lost where they frequently change hands . This could be a service center that lends electronics to customers, or a construction company where dozens of workers exchange jackhammers in a month. If such a company does not have clearly defined processes for transferring assets, it loses track of them . Employees put things away wherever they see fit, and chaos grows.
Smaller companies handle asset turnover using an Excel spreadsheet, while larger companies have specialized functions in their information systems for this purpose. The latest trend is cloud tools with mobile devices .
For example, in the aforementioned construction companies, it is common today for workers to have apps on their mobile phones that they use to scan the barcode on tools in the warehouse. The app records who borrowed the tool and when, so everyone has an overview of where each tool is . And if it gets lost, the manager can quickly find out who last had it.
The same methods can be applied not only to field workers, but also, for example, to office employees working from home who borrow work equipment to take home.
4. Theft
Some assets are lost by mistake, while others are “lost” by being misappropriated by an employee, customer, or even a random passerby in a moment of inattention. It’s a sensitive topic, but it happens often – and it will happen even with the most advanced asset tracking system.
The difference is that with asset tracking technologies, a company can more easily track down how the theft occurred and increase its chances of compensation, or even better, deter a potential criminal.
The solution to the theft then looks like this:
- The manager can check the records to see where the tool was last seen or who had it with them .
- view the camera footage or interview the person who had the item with them,
- for more expensive assets equipped with a tracking device, it can immediately find out where they are currently located,
- and because everyone in the company knows about this record, it will deter some potential thieves.
Of course, asset tracking technology alone won't prevent theft. Businesses should also invest in facility security, CCTV systems, and other security measures.
Get advice on how to get started with smart asset registration
Asset tracking is common abroad, but not so widespread in the Czech Republic. These tools are available on the Czech market - including simple cloud applications , which are cheaper than, for example, accounting systems and can be deployed in a matter of hours .
If you also want to clearly record and monitor your assets, contact us . We have implemented the aforementioned solutions in dozens of small and large Czech companies. We will discuss your requirements for smart asset registration with you without obligation and help you find suitable technologies.
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