The Beginner’s Guide to Asset Inventory Management

Keeping track of everything your business owns can feel like a lot, but mastering asset inventory management simplifies the process. An asset inventory management system gives you quick access to important data so you can track where your assets are, control inventory, and manage maintenance while saving time and reducing costs.

From maintaining accurate records to improving workflow efficiency, asset inventory management turns chaos into clarity. It ensures accurate asset accounting, helps your business stay organized, and contributes to reliable practices that will help your organization grow.

What is asset inventory management? 

Asset inventory management means tracking and managing physical and digital assets from start to finish. This involves monitoring their statuses, locations, and conditions and helps you keep the right materials available when you need them. You'll be able to make better data-driven decisions, improve efficiency, and reduce unnecessary costs.

With an asset inventory management system, businesses can track assets such as equipment, machinery, and software, letting you keep critical items properly maintained and accounted for. You'll also be able to prevent stock shortages, improve asset utilization, and extend the lifespan of your equipment.

What is an asset inventory management system?

An asset inventory management system helps people track, manage, and optimize an organization's physical and digital assets throughout their lifecycle. It provides a centralized platform for businesses to monitor and control their assets, which can include anything from physical equipment like computers and machinery to intangible assets like software licenses or intellectual property. 

Asset management vs. inventory management 

According to the Corporate Finance Institute, assets are items that generate “positive economic benefits for organizations.” Put simply, they are resources that help organizations meet their production and service objectives. Without assets, you wouldn’t have a business; you would have groups of people standing around with nothing to do.

Assets fall into several categories, including operating, non-operating, physical, intangible, current, and non-current assets. Examples of assets include vehicles, machinery, furniture, computer equipment, intellectual property, and even digital formats such as webinars.

Inventory, on the other hand, refers to both raw materials used during production processes and finished products available for sale.

Assets and inventory are the backbone of any business, but managing them effectively requires different approaches. Asset management is about tracking and improving the valuable items your company uses over time, while inventory management makes sure you have the right stock available when it’s needed for production or sale. Many of these systems also combine with work order software to make maintenance tasks easier and track how assets are used. Understanding the difference between asset and inventory management helps businesses stay organized and avoid costly mistakes.

Asset management software

Keeping track of your company’s valuable assets is important. Maintaining accurate records is critical for optimizing asset lifecycle management, from the time you buy them to the time you retire them. Asset management software helps you stay on top of the resources your business needs in order to function, making sure that nothing gets lost, forgotten, or underused. This system helps with tasks such as:

• Tracking fixed assets: Asset management systems have an asset registry to track items and their users. The system registers assets using their serial numbers and assigns users sign-in credentials to ensure accountability. This helps prevent asset loss, damage, or theft.
• Scheduling maintenance: The system is invaluable for recording and scheduling maintenance activities, which is vital in maximizing the useful life of equipment. Asset management systems often integrate with a computerized maintenance management system (CMMS) that offers robust features for tracking and scheduling preventive asset maintenance.
• Calculating depreciation: Over time, assets lose value. An asset management system can help you calculate asset depreciation using the four methods primarily used to calculate asset value decline—straight-line depreciation, units of production depreciation, double-declining balance, and the sum of the year’s digits.

Inventory management software

Having too much or too little inventory is a challenge many businesses face. Inventory management software helps ensure that your shelves are stocked just right, streamlining the process of ordering, tracking, and managing inventory levels in real time. Inventory management software can help you with these processes:

• Inventory control: Inventory is crucial for keeping your business running smoothly. Too much stock can tie up your cash flow, while too little can lead to stockouts and missed sales. Inventory management systems help you track stock levels and predict future demand, helping you keep the right amount of inventory on hand.
• Workflow efficiency: Inventory management systems automate repetitive administrative tasks, such as calculating freight, customs, and insurance costs on purchase orders, improving workflow efficiency and productivity.
• Real-time stock monitoring: These systems enable real-time visibility into warehouse stock quantities, improving inventory turnover and order fill rates.

The difference between asset management and inventory management

Organizing what you own and what you sell might sound similar, but asset management and inventory management have key differences that can make a meaningful difference for your company. In short, asset management software tracks what your business uses, and inventory management software tracks what you sell. However, both systems work together to optimize your operations, and understanding the difference will keep your business organized and efficient.

Four types of asset inventory

• Raw materials: Organizations use these items when producing goods. They are the building blocks that form the final products.  
• Work-In-Progress (WIP) inventory: WIP inventory lists unfinished products still under production; it’s also sometimes referred to as intermediate goods.
• Finished goods: Businesses also track inventory through finished products that are ready for sale. These items do not require any further processing for use.
• Maintenance, Repair, and Operations (MRO) inventory: An MRO inventory refers to a list of supplies that maintenance professionals need to perform their work.

Asset inventory management is about ensuring departments have access to up-to-date inventories of company assets.

Thus, an asset inventory management system helps streamline asset inventory management. It’s a combination of hardware and software technologies as well as processes that oversee the monitoring and maintenance of organizational assets and inventories.

Key functions of an asset inventory management system include centralizing asset repositories, monitoring asset events throughout their life cycles, and evaluating performance.

The purpose and benefits of asset inventory management

Effective asset inventory management systems make it easy to track the movement of objects across organizational departments. Among other benefits, prioritizing asset inventory management helps streamline supply chains.

The purpose of asset inventory management

Asset management is a core aspect of risk reduction and value creation. Government institutions, non-profit organizations, large companies, and small and medium enterprises (SMEs) need to maintain consistent records of possessions. Doing so allows them to:

• Maintain central asset repositories: Storing data in one place makes it easier to generate reports for maintenance scheduling decisions, claim warranties, and apply for asset insurance/financing services.  
• Keep tabs on asset whereabouts: Asset management is crucial to tracking the physical location of your assets. The right software allows you to see where assets are located, how they are being used, and if any recent changes have been made. You can also track equipment through its lifecycle to optimize maintenance, upgrade, and disposal timelines.
• Monitor idle time: Tracking the utilization of key assets is essential to evaluating team productivity. Asset management systems make calculating and developing strategies to reduce idle time easier.
• Evaluate asset performance: Understanding your assets' performance lets you get the most value you can from them. You can also pinpoint the risks associated with using the assets to find ways to reduce them.
• Asset maintenance: Lastly, asset management allows you to develop an effective proactive maintenance strategy to keep your assets in good working condition. You can also track asset maintenance history to make informed maintenance decisions. This will help you avoid problems associated with under- or over-maintenance.

The benefits of asset inventory management

Inventory and asset tracking enables organizations to track an asset’s location, users, and condition. There are many technologically convenient methods to do this, including scannable barcode labels, Radio Frequency Identification (RFID), Bluetooth Low Energy (BLE), and Global Positioning System (GPS). Each asset gets a unique ID to avoid confusion and misinterpretation of asset data. Asset tracking contributes to business success in the following ways:

• Enhances accountability: Some assets move around fairly often. In such instances, it’s important to maintain accurate records of asset movements, operators, and users. This helps ensure proper asset utilization and improves accountability.
• Streamlines maintenance: Companies can also track the costs of maintaining facility assets. Data tracking outlines asset procurement, performance, and service events. Such asset information is key to effective maintenance, purchase, and resell decisions.
• Minimizes theft: Management can significantly reduce the chances of losing assets to theft or misplacement by tracking them. This ensures that maintenance and production can continue uninterrupted as the necessary assets are always available.
• Reduces administrative costs: Managing assets from a central repository saves time and costs. An asset tracking system automates repetitive administrative tasks, reducing human error and improving employee productivity. These help lower administrative costs. 

The top asset inventory management techniques

Asset inventory management is more than just keeping a list of what you own. It’s also about using the right techniques to effectively track, maintain, and optimize the performance of your assets. Implementing these best practices will help you stay organized and reduce inefficiencies. 

Conduct regular audits

Periodic reviews are essential for maintaining accurate records. By regularly auditing your asset inventory, you can verify that the items listed in your system are accurate, up-to-date, and in their proper locations. MaintainX makes it easy to schedule and perform audits with digital asset tracking and reporting, letting you account for all your assets and quickly resolve discrepancies.

Standardize procedures 

Consistency is key to successful asset management. Standardizing how assets are tracked, maintained, and disposed of ensures uniformity across your team. MaintainX allows you to customize your workflows to align with your company’s standard operating procedures, helping to streamline maintenance activities and reduce human error.

Provide training

To manage assets effectively, your team needs to be properly trained on how to use your asset management system and follow protocols. MaintainX provides intuitive training resources that help your team quickly get up to speed so they can focus on their work.

Leverage IoT (Internet of Things) 

IoT devices, such as sensors and GPS trackers, give you real-time insights into the status and location of your assets. MaintainX integrates with IoT technology, allowing businesses to monitor their assets remotely, receive automatic updates, and respond to issues before they become major problems.

How to Choose Asset Inventory Management Software 

Now you know why you need to invest in an asset inventory management system for your business. But what factors should you consider when shopping for asset management solutions? Prioritize platforms that offer:

1. Integration with existing systems

You’ll need asset inventory management software that integrates seamlessly with your current systems. Whether you already use a computerized maintenance management system (CMMS) or other business software, integration helps data flow smoothly between systems and saves time. MaintainX offers API functionality, allowing it to integrate smoothly with third-party software and ensure your asset data flows seamlessly across platforms.

2. Customization options

Your business is unique, and your asset management software should reflect your needs. Look for systems that offer customizable features to match your specific processes. MaintainX allows you to tailor workflows, asset categories, and reporting dashboards to fit your company’s operations, helping your system evolve as your business does.

3. Scalable pricing

Affordability and scalability are crucial, especially as your business grows. MaintainX offers flexible pricing plans that allow you to scale the platform according to your team size and operational needs. Start small with basic features and scale up as you expand, making it perfect for small and medium enterprises (SMEs) with evolving requirements.

4. User-friendly interface

Usability is one of the most critical factors for software adoption. It impacts software adoption and implementation among employees. Even the most powerful software can't be helpful if users struggle to use it. MaintainX’s intuitive interface enables your team to quickly learn and use the system, with mobile apps available on iOS and Android for easy access in the field or on the go.

5. Software flexibility

Pay attention to system flexibility. Many modern inventory management solutions are mobile-friendly, allowing remote workers to access the system from anywhere. These solutions also cater to organizations with multiple locations, keeping everyone connected. MaintainX’s cloud-based platform ensures your team can manage assets from anywhere, whether working from the office, the field, or remotely. Its mobile-friendly design means employees can access critical data and perform tasks without an internet connection, syncing updates once they’re back online.

6. Reliable customer support

Choosing a software provider with ongoing support is crucial for smooth implementation and long-term success. MaintainX has earned high marks for customer service across trusted platforms like Capterra and the Apple App Store. With dedicated support teams and  24/7 support through phone, chat, and email, MaintainX gives you the help you need when needed.

Simplify Asset Inventory Management with MaintainX 

Asset inventory management is often time-consuming and requires careful attention to detail. MaintainX eliminates the guesswork and manual effort by providing a centralized platform to help organize, monitor, and optimize assets. From scheduling maintenance to real-time tracking, we provide the tools to manage and maintain your assets. Our platform is designed to meet the unique needs of various business roles.

Executives

Executives often struggle to visualize overall asset status and align inventory levels with long-term goals. MaintainX can provide in-depth reporting and dashboards, giving executives a clear view of asset health, usage, and inventory status across multiple sites. Our system supports data-driven decision-making and helps optimize capital expenditures.

Staff

Technicians often face difficulties locating tools, parts, and asset information in the field. MaintainX's mobile app makes it easy for technicians to access critical asset data, such as maintenance history and locations, directly from their smartphones, wherever they are. Our app also allows for real-time updates on work orders, keeping everyone on the same page.

Maintenance and facilities managers

When managing a facility or maintenance team, there’s always something to keep track of, whether it’s asset health, planned maintenance schedules, or parts inventory. Maintenance managers are tasked with ensuring assets remain operational while avoiding unexpected breakdowns. MaintainX allows them to schedule preventive maintenance tasks, monitor asset health, and track real-time asset utilization. Facilities managers must keep buildings and grounds optimal for operations. With MaintainX, they can oversee everything from structural upkeep to HVAC maintenance.

Procurement teams

Procurement managers must balance ordering enough parts to prevent delays and keep costs low by not overstocking. MaintainX’s inventory management feature tracks parts usage and stock levels, helping procurement teams optimize inventory. Our maintenance inventory software further simplifies the process for maintenance teams through timely orders and efficient stock control. 

Plant managers

Plant managers are responsible for ensuring production moves efficiently with minimal asset downtime. MaintainX helps plant managers maintain productive efficiency by providing real-time visibility into asset performance and maintenance schedules. We also reduce unplanned downtime to help them keep production running smoothly and meet targets.