7 features to look for in asset management software

1.     Lifecycle management

Asset lifecycle management encompasses an asset's journey from acquisition to disposal. Lifecycle management can be especially valuable for long-term planning and capital budgeting because it helps decision-makers more accurately forecast future needs. It also helps companies extend the life of existing assets through routine maintenance and provides managers with insight into the financial implications of equipment replacement versus repair.

Asset lifecycle management software tools include features for warranty monitoring, calculating depreciation and decommissioning assets.

2.     Predictive maintenance

Maintenance management helps prevent equipment breakdowns, which can extend asset life and reduce downtime.

Maintenance scheduling software features automate equipment servicing, with workflows that prompt users to carry out routine checks, updates or repairs. This functionality often incorporates work order ticketing and tracking as well. Some asset management software also includes features that can help organizations track labor and parts usage, providing a fuller view of TCO, or total cost of ownership.

Predictive maintenance takes prevention one step further by using machine learning algorithms, often in combination with IoT sensors, to forecast potential problems and flag questionable equipment for proactive servicing. This approach has become increasingly popular in organizations that rely heavily on equipment for daily operations.

3.     Inventory and spare parts management

Maintaining a stock of spare parts and supplies can help prevent future problems. Software features like real-time inventory visibility, low-stock alerts and automated reordering can help ensure that operations teams have everything they need to keep equipment in good working condition.

Asset management software that integrates with a company's existing procurement and supply chain systems could further improve inventory and spare parts management.

4.     Real-time asset tracking

Real-time asset tracking tools monitor the asset's location, usage and performance through technologies like QR codes, RFID and GPS and update asset status when changes are detected.

The software creates new records when assets are checked in or out, helping identify who has a certain asset at any given time. This capability improves accountability and can help prevent theft and misuse.

5.     Reporting and analytics

Reporting and analytics features provide customizable dashboards, charts and reports about asset performance, costs and trends. They often use data visualization to identify patterns, anomalies or optimization opportunities.

Reporting and analytics tools can help teams forecast needs, comply with regulations, calculate ROI and improve their company's financial performance.

6.     Integration capabilities

Integration capabilities enable asset management software to connect with other software, such as ERP or procurement and supply chain management systems.

Integration can help enable faster, more accurate workflows. It can also eliminate the need for manual data entry and improve data visibility across the organization.

7.     Alerts and notifications

In many cases, timely intervention can be the key to avoiding costly equipment problems, including downtime. Alerts and notifications inform users about problems.

A system that can alert users via email, SMS text message, or in-app notifications and which automatically escalates unresolved alerts within a specified timeframe can improve accountability and ensure timely responses to potential issues.

James Kofalt spent 16 years at SAP working with SME business applications and was a product manager for integration technology at Microsoft's Business Solutions division. He is currently the president of DX4 Research, a technology advisory practice specializing in ERP and digital transformation.