Fixed assets such as servers, transport trucks and elevators require a big capital investment. Global spending on IT hardware alone is expected to rise to $1.1 trillion US dollars by 2019.[iii]
Much can be gained from optimizing the useful life of physical assets. Without fixed asset management, an organization may experience:
- Unplanned downtime
- Equipment failures
- Misplaced or lost inventory
- Safety or environmental breaches
- Failure to meet compliance or regulatory standards
For companies with large inventories, the results may convert into millions of dollars in lost productivity, repairs, replacement or fines.
Beyond immediate costs, substandard equipment can impact the quality of an organization’s services or products – in turn, affecting customer satisfaction and business reputation.
According to the ISO 55000 international standard, asset management should maximize value for money.[iv] Ideally, fixed asset management optimizes the quality and useful life of equipment and ensures the best return on investment.