Is Your Business Really at Risk?
There is so much talk these days about digital transformation, and especially big buzz around how one form of digital transformation – holistic asset management – may be the easiest, most affordable and most intelligent way to affect comprehensive and meaningful transformation in any business or organisation.
This discussion mainly focuses on the enormous benefits to any company of any size, but for executives, managers and decision makers it is often more important to look at the flip-side – that is, what are the dangers of not employing digital inventory control, and how can this actually hurt your company?
It should not go without saying that any one of these risks, in addition to causing specific problems for your company, can be quite costly in real monetary terms, and that the best asset management software can provide a ROI (return of investment) that is not only clear and demonstrable, but often surprisingly sudden.
Risk 1 – Missed Sales Opportunities
Dangers:
- Loss of potential revenue
- Decreased customer satisfaction
- Decreased income / engagement among sales staff
Every sales agent has, at one point or another, faced the frustration of pitching a product only to find that it is not in stock. Lead generation strategies must include engagement across multiple platforms. But a comprehensive lead generation strategy involves accurate and relialbe data. Inaccurate or out of date levels or incorrect counts can lead to missed sales, customer frustration, larger problems with accounts and with the credibility of your agents and your company.
But there are other aspects of this risk, which can over time lead to even greater loss of revenue. For example, an asset management system that fully accounts for all digital and physical stocks can make a salesperson aware of related, combinable and supporting saleables, therefore avoiding missed opportunities, increasing commissions and revenues, and enhancing customer satisfaction and retention.
Risk 2 – Improperly Maintained Assets
Dangers:
- Dangerous work environment
- Lack of compliance (legal, regulatory, insurance, etc)
- Increased costs in asset replacement, maintenance and repair
- Increased costs due to lower productivity / workflow disruptions
One of the main benefits of digital transformation and industry 4.0 – and one fully supported by good asset management services – is the optimisation of the maintenance and upkeep of machinery, equipment, fleets and other assets.
Without an easily available record of usage hours and conditions, warranty information, maintenance and service records, and even employee usage notes, companies will consistently lose money because of equipment failure, unnecessary maintenance, repair and replacement, low productivity and workflow interruptions.
Asset management services can provide all of this information and greatly improve productivity and cut costs. And by enhancing them with real-time data sensors for machinery and equipment – an IoT (internet of things) environment – you can realise even more dramatic savings, as well as increases in productivity, revenue and workforce satisfaction. The same goes for Software as a Service (SaaS) which is remarkable adaptable and plays a crucial role in unlocking efficiency and innovation. The increasing reliance of businesses on SaaS solutions is highlighted by the remarkable expansion of the SaaS market over the past decade, projected to reach a value of $232 billion by 2024.
Risk 3 – Incomplete or Outdated Employee Certifications
Dangers:
- Lack of compliance (legal, regulatory, insurance, etc)
- Unsafe working conditions
- Decreased productivity and associated loss of revenue
All employers are legally obliged to provide a safe workplace and protect their employees from harm. This involves managing risks and risk assessment at work. In this context, it should never be understated how improper or out of date employee training or certification can cause dangerous working conditions, and it is also very important to realise how inadequate or incomplete training can move your company away from optimal efficiency and effectiveness, affecting productivity and revenue and even your organisation’s reputation and place in the industry.
Further, when we let training and certifications lapse, or fail to proactively maintain employee education, workers feel less confident, less capable, less valued and less a part of their company. When asset management services cover digital assets as comprehensively as physical assets, not only will productivity and revenue markedly improve, so will employee morale.
Risk 4 – Productivity Interruptions
Dangers:
- Loss of revenue
- Decreased employee satisfaction (stress, focus, errors, engagement)
- Inability to meet quotas, revenue projections, or strategic milestones
- Decreased customer / client satisfaction
- Missed deadlines / impact on related processes
We briefly talked about productivity interruptions earlier, but it is worth discussing in more detail – especially in how any organisation can really be hurt by all types of workflow stoppages or slowdowns, and how effective holistic asset management can be in eliminating this risk.
There are so many forms of productivity disruptions – in manufacturing, in warehousing and distribution, in customer service and sales, in personnel management, in corporate planning and strategic implementation, in IT and digital resources and much, much more – and each disruption comes attendant with its own host of problems and frustrations.
But they all, and usually to a greater rather than lesser degree, involve loss of real or potential revenue, and any disruption or variance from full productivity can negatively impact all aspects of your company. This is why Asset Tracking Software such as the cloud app provided by Zurich-based Timly are optimised to manage the lifecycle and maintenance of IT assets and other business equipment.
Source: businessresearchinsights.com
Risk 5 – Outdated Stocks
Dangers:
- Missed sales opportunities
- Decreased customer satisfaction
- Legal repercussions
Any saleable stocks that are outdated can make a sales representative, and indeed a company, look especially bad – unprofessional, even unethical – and sabotage long-term relationships. Furthermore, selling outdated stocks can be dangerous, and potentially actionable, and the ethical considerations may be even more serious than the financial.
All of this is applicable and important to many different industries, from retail shops to commercial and industrial sales, service providers, health care, research and development, manufactory and more, and can apply equally to physical stocks, digital products and all sorts of services. Understanding the transformative power of data analysis is crucial in this context, and here the best data analysis software systems can be a pivotal step towards achieving unparalleled business intelligence and profitability.
Similarly, a well designed inventory management service can not only record information about expiration dates and time in stock and new releases, but serve as an enormously helpful interactive tool in purchasing decisions and product development, offering real insight into other products and providers and what is best for your organisation and your customer base.
General Dangers of Poor Asset Management
The last point in the above section might lead to a broader consideration of the ways not having a comprehensive digital asset management system is putting your business at risk, since it speaks to the way inventory management services can help with a company’s decision making and long-term planning.
Strategies developed without a complete and clear picture of your company’s current physical and digital assets – their age, condition, value, usage, interaction and availability – will almost definitely fall short, or even fail, and rather than leading your industry or sector, or even meeting your own projections, you might well find your company losing competitive edge and falling behind in this time of remarkable technological innovation and implementation.
Conclusion
To end on a positive note, good asset management platforms / services can ensure:
- Better short-term and long-term decision making
- Improved utilisation, maintenance and life cycles for both physical and digital assets
- Often marked increases in productivity and revenue
- Timely, complete and accurate compliance, both internally and externally
- Better use of employees, and better employee morale
- A more clear and complete awareness of your customer base, competitors and industry
- A more useful and accurate map of your supply and distribution chains
- A complete and synergistic foundation for additional digital transformation componentes and extended functionalities, like artificial intelligence, robotics, big data, the internet of things, and more.
Indeed, a holistic inventory management solution is not just a complete digital transformation in itself, it is quite probably the best starting point to everything else in Industry 4.0: smart maintenance, smart manufacturing, smart workforces, smart products and development, smart management, smart sustainability. All things considered, a very smart decision!
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