Asset Lifecycle Management (ALM) sounds like a term that a Peloton fitness trainer might use – but it’s not.
Instead, it refers to how businesses plan for, acquire, deploy, and dispose of their tools and equipment (assets.)
Done well, Asset Lifecycle Management can drive efficiency – both financial and operational.
Done poorly and ALM could drive your business into the ground.
In this article...
Stage 1: Planning
ALM begins with effective planning. Assess your business’ current and upcoming asset needs.
Ensure your staff provide you with the latest information on the condition of all tools and equipment.
Then decide what tools and equipment need to be replaced; what additional equipment needs to be bought for future contracts and what assets you intend to acquire based on your business’ strategic goals.
Balancing equipment needs with budgetary restrictions is key and enables you to balance the books, while maintaining a safe, compliant workplace.
Your goal is to ensure that the asset count of unsafe and unnecessary equipment is nil and that you have the right working equipment in the right working hands every time.
Stage 2: Acquisition
During the asset acquisition stage, you’ll research asset choices, create a shortlist of potential suppliers, receive quotes, and then make your purchase or choose to lease.
Shopping around for equipment is a must – even when you’re in a time crunch – in order to get the most bang for your buck.
Also, take into consideration the different delivery times and delivery costs you’re being quoted, as time delays are not good for business.
And as always, when you are looking to buy – haggle.
Stage 3: Deployment and Maintenance
Want to know the best way to deploy an asset?
Use an asset management system like GoCodes.
Deploying an asset should include adding the necessary trackers (whether rugged tags or a Real-Time tracker for example) and entering its information into your software including warranties, User’s manual, and Maintenance Plan.
This would be the ideal time to set up employee notifications for maintenance or inspections.
Once the asset has been set up in the software system, it can be allocated to the right team, who can implement any needed employee training (and note that in the software, too) before the asset goes live.
The more thorough your software implementation upfront, the easier it will be to know who is using the asset, where they are using it, and whether it’s been maintained going forward and that’s the win!
Stage 4: Disposal
When your equipment is no longer in service, the asset is at the end of its lifecycle.
Perhaps your business no longer needs to use a specific piece of equipment, perhaps there’s a more updated option out there that you wish to buy or maybe the equipment can no longer be maintained and has served its purpose.
Determine the most economically and environmentally friendly option for the disposal of your equipment.
This could include selling it, recycling it, taking it to the scrapyard, or partnering with a broker who may have a buyer lined up.
Make sure to do your sums and figure out the ROI of all the equipment you dispose of, since that will enable you to begin your effective planning process once again.
It all boils down to asking yourself one simple question, “Was this asset worth it?”
We hope you enjoyed this Masterclass article.
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