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INFRASTRUCTURE AND DEVELOPMENT

How to Keep Business Assets in Good Condition

How to Keep Business Assets in Good Condition
The Siliconreview
24 September, 2021

Whether you own a factory or a logistics business, you need to make sure all your assets are well-maintained. You have invested money in procuring quality equipment, building standard facilities, and purchasing materials. Making sure that these assets will contribute to efficiency will help you avoid costly losses.

However, setting up a system for ensuring that all your assets are in good condition can be challenging. For one, you need to know where to get started and what tools and approaches to use. If you need assistance when it comes to maintaining your business' assets, here are a few things to keep in mind.

Form a team

Asset management is a complicated task. You need a team to handle things, so make sure you form a team with supervisors and maintenance employees whose responsibility is to check your assets and identify if there's a need to fix, replace, or purchase.

Take an inventory

In any organization, managing inventory helps you identify the assets you have and the current condition they are in. With your asset management team, start with the smallest and work your way towards the largest and most expensive assets. Begin by listing down furniture then electronics. After that, work your way towards IT equipment and transportation assets until you end up with heavy machinery. Make sure to categorize these assets and include notes on damage and other issues.

Check for depreciation

Depreciation is when wear and tear takes a toll on your assets, and they become less valuable as a result. Every piece of furniture and equipment is vulnerable to depreciation. While this is a normal occurrence, you still need to come up with an estimated lifespan for each item. Most furniture, for instance, can last up to five years (or even longer through proper care). Knowing this will help you allocate the right budget for purchasing replacement assets. You can also include depreciation as a tax deduction, so make sure to check the condition of your assets regularly.

Identify service centers and suppliers

If a piece of equipment gets damaged, you need to bring it to an accredited repair center and look for suppliers of replacement parts. Having a list of service providers and suppliers to reach out to in case of such scenarios will help you save money and ensure the continued use of these assets. If you're in the logistics industry, you can check out companies like PartsBrite.com if you need quality replacement parts for your loading facility.

Get insurance coverage for your assets

You can't always prevent certain business assets from getting partially or fully damaged, which is why you need business property insurance coverage for scenarios that are out of your control. For transportation assets like service vehicles, you may need to shop around for the right auto insurance coverage. Getting insurance coverage will help you recoup your losses, so look for a provider that gives you the policies that match your business’s needs.

Keeping your assets in good condition helps keep your business productive and profitable. All it takes is effective asset management using these tips.