Fixed Asset Management – A Technical Necessity Or A Company’s Core Competencies?

Fixed Asset Management - A Technical Necessity Or A Company's Core Competencies

In a company, the management division is very important, such as – marketing management, production management, the notion of asset management.

As it is known, assets in a company are not only in the form of goods, but also human resources, namely employees or people who work in it.

When viewed in general terms, asset management is the activity of managing assets belonging to a person, company, or organization effectively to achieve a goal.

Assets can also be regarded as an investment or source of funds for a company and can be useful as a tool to achieve goals, it is necessary to manage your fixed assets.

What is the Purpose of Asset Management?

Asset management also has several objectives in a company including:

  • Ensure the ownership status of an asset.
  • Investment so that the company can take an inventory of the assets owned.
  • So that the asset value remains high, maintained, and has a long life.
  • Ensuring an asset so that it can generate maximum profit.
  • Achieve optimal use and utilization of assets.
  • So those costs can be minimized over the life of an asset.
  • To secure assets.

How important is it for a company to have good asset management? Because with proper and clear asset management, a company can keep the value of its assets stable. Even asset management can also help company increase profits, both in terms of income and achieving goals.

When companies implement their asset management properly, they can also minimize the risk of loss that comes from damage or declining asset values. Without special management of company assets, you cannot monitor if the assets are depreciating.

The fixed assets used by the company, when well-managed, enable the manufacture of the products and services it produces to be operated cost-effectively and reliably.

Investors and regulators see the growing importance of fixed asset management in adding value, reducing risks, cost savings, and, increasingly, environmental issues such as minimizing the carbon footprint. So why hasn’t fixed asset management been seen more broadly as a company’s core competency?

Growing demand for services, ongoing cost pressures, digitalization, and climate change targets continue to increase interest in fixed asset management. Asset management has thus even become a strategic tool for companies whose success depends on their infrastructure and other fixed assets.

In recent years, fixed asset-intensive organizations have developed their operations in a highly coordinated manner and developing the added value of fixed assets, but in general, the sector continues to suffer from silenced and bottom-up management practices.

Fixed asset management remains a technical tool in companies until these practices and mindsets are changed. Similarly, the benefit potential of fixed asset management remains unattainable.

For fixed asset management to take its rightful place in asset-intensive organizations, more efforts are needed at all levels of the organization. Leaders need the commitment to ensure the support of the entire organization.

Closer integration and a focus on creating value for owners and stakeholders must also be an objective of business development. Fixed asset management requires more effective and inspiring communication to sell benefits across the organization.

To learn about the position of your fixed assets, it is best to contact CAC’s expert team of fixed asset managers. We suggest you consult the fixed asset management services of CAC to track and maintain the organisation of fixed assets in your company.

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