How IoT has Restructured Asset Management in the Automotive Industry
Managing the assets in any automobile industry has never been easy with the implementation of IoT technology. Gone are the days where the asset manager or the floor engineer cannot exactly predict the status or whereabouts of their auto machinery parts in varied weather conditions.
Asset Management gives in-depth visibility to take an informed decision to buy a new asset in the most cost-effective way and offer a streamlined approach to manage already existing assets.
Types of Asset Management
“Increase Your Operational Efficiency and Decrease The Equipment Loss”
Streamlining any organization whether big or small needs to scrutinize the wasteful or unwanted investments effectively. It ensures to make the long term and short term goals more attainable and feasible. With Asset management solutions, all the asset types can be monitored and tracked accordingly.
- Fixed Assets – Raw materials, heavy-duty floor equipment & other finished goods
- Movable Assets – All kinds of Vehicle fleets
- Current Assets – These assets are usually expected to be sold within a year
- Human Assets – Related to people management and human resources
Fixed Assets
Fixed Assets are the physical items that are non-movable like the vehicles, plants, machinery parts, along with the technical control and software systems that serve a business organization. Many organizations embracing the IoT solution to transform into an effective digital workplace.
- The depreciation cost is an important aspect in terms of tax benefits. For example, if an automobile part is purchased at the rate of $100,000. Then the depreciation amount is calculated as $10,000 for every year. Depreciation keeps track of the asset losses over a period of time.
- Manage the fixed assets with a relevant insurance policy for each asset. This will help to monitor the industry’s overall annual insurance premiums.
- Also, fixed asset maintenance allows supporting the maintenance costs, scheduled service dates which determines whether a particular asset needs a replacement or not.
Movable Assets
All types of vehicle fleets are managed and monitored by movable assets type. Movable assets provide a systematic approach to managing every asset in the fleet for easy tracking. With a group of vehicles of cars, heavy-duty machinery, an indispensable fleet management solution is essential.
- GPS tracking, wide area RFID tag and barcode labels used to monitor each asset, engine health, usage history, upcoming any maintenance schedules are tracked and monitored.
- Getting real-time data from this asset solution helps to control the operating costs, reduces theft and eliminates the potential damages in the long run.
- Depending upon the features, asset tracking software saves any organization with the cost varying from $15 to $80 per asset for a more feature-rich asset tracking system.
Current Assets
All sorts of cash flow are categorized under the Current Assets type. Any prepaid accounts, short term investments, cash payments, accounts that will be used in the near future are measured using this type.
- Using current assets, the owner can overcome any debts by paying with a ready cash amount where these current assets can be converted into cash instantly.
- Current assets help to cover liabilities without the need to sell any fixed assets.
- Stock, cash, and debtors are some of the examples of the current assets.
- Decision making is facilitated by current assets
Human Assets
Like the fixed assets and movable assets which focus on the physical machinery parts of the automobile industry, assessing the human resource system is also mandatory. To have a healthy working environment and professional workflow, an upskilled talent pool of engineers and fleet managers is inevitable.
- Monitoring the performance of the employee through individual asset key performance metrics. It helps to monitor and track the areas where they need to be reskilled or provide better results.
- Creating a holistic and agile workspace for the employees that is tailor-made according to the automobile requirements
Role of IoT in Asset Management
IoT enabled Asset management system paves way for a connected eco-systems in the automobile industry. It saves fuel efficiency by rerouting the drivers to fewer traffic directions with less commute time. IoT sensors also detect the behavior patterns of drivers and alert them if it finds they doze off behind the wheel.
- Single-Strategic systems that help to monitor the overall activity of an organization digitally.
- Remote asset tracking
- Predictive Maintenance allows performing an effective predictive analytics workflow for automating the process and analyzing the trend in the automobile industry
- Asset Health and condition monitoring to monitor the asset’s durability in the long run.
Wrapping Up
Hence, the Internet of Things has become an integral part of the automobile industry with an asset management solution. Through these various types of asset monitoring solutions, the value of every business entity can be clearly measured and analyzed for making the important decision making. This asset tracking increases the operational excellence that aptly aligns with the customer’s requirement and demand.
Source: Aithority
ASSETCOMPLY helps industries with fixed asset tagging, physical verification, maintenance management, depreciation management with fixed asset tracking software. Scheduled maintenance and AMC management of the fixed assets reduces breakdowns and downtime increasing the productivity of the plant. Find out how we can help you adopt IoT and take you closer to industry 4.0.