Ghost assets haunt the bottom line of almost all types of organisations – from small-scale clubs to large-scale corporations and councils. Ghost assets can cause cost and efficiency issues. Although ghost assets are common, especially in organisations using manual asset management systems or spreadsheets, they can be easily overlooked for a long time.
What are ghost assets?
Ghost assets are those that are recorded in an organisation’s asset register but which are physically unavailable because they are either missing or otherwise unusable. A common example of a ghost asset is a tool or machinery that has gone missing due to poor asset management. Another example could be an obsolete computer that has not been disposed of correctly. It could also be any stolen equipment or any asset sitting idle on a job site.
How can ghost assets impact an organisation’s bottom line?
Ghost assets take a toll on an organisation’s finances and productivity due to the following two factors:
—-> Unnecessary insurance premiums
Any ghost asset that goes unnoticed by an organisation is considered a working asset and is thus included in the organisation’s insurance coverage. The organisation continues to pay inflated premiums because of assets that do not actually exist.
—-> Reduced productivity
Ghost assets can have a negative impact on an organisation’s productivity. For example, if a volunteer or an employee needs to use particular equipment but that equipment is missing or otherwise unusable, they are unable to effectively perform their job, leading to unexpected downtime. Moreover, the organisation can then encounter unplanned expenses to purchase new equipment to get the job done.
How can asset management scare away ghost assets?
Ghost assets are most likely to appear in organizations that follow a manual asset management process. However, the implementation of effective asset monitoring software can simplify asset management, making the process more accurate and quick.
Smart and easy asset management software like assetTRAC is fortified with useful features that help identify and eliminate ghost assets. These features help with the following:
—-> Asset lifecycle monitoring
Asset monitoring software provides an organisation with a clear picture of all of their assets and where they are in their lifecycle – right from the beginning through to disposal.
—-> Asset management
Asset management software enables organisations to effectively manage and keep tabs on their assets’ whereabouts and condition, even from a remote location. This helps reduce the number of lost or faulty assets.
—-> Scheduling maintenance
Preventative maintenance of assets helps avert deterioration. Organisations that employ asset monitoring software can effectively schedule preventative maintenance of their assets to keep them in good shape and only replace them when they have reached the end of their useful life.
—-> Generating comprehensive reports
The detailed reports generated by asset monitoring software can help organisations to evaluate their assets’ performance and easily identify ghost assets that affect their productivity and profit.
assetTRAC is smart and easy asset monitoring software that provides automated and hassle-free asset management and reporting, leading to benefits like reduced costs and improved efficiency.