Managing government facilities is a logistically difficult task that requires advanced means of recording and tracking assets. However, for the smooth delivery of public services, it must be ensured that government assets are well maintained and recorded.
Government organizations have diverse functions and departments – from education, power, healthcare to welfare – and the assets within them require special attention to avoid glitches and malfunctions. Equipment failure can cause ripple effects, as facilities connected to central government control points suffer losses and delays – for example, a generator failure at a power plant will cause connected homes to lose power.
Therefore, in order to achieve the operational efficiencies required for government asset management, it is in an organization’s best interest to adopt an automated asset management system.
How can government asset management improve productivity?
Sound government asset management can bring a variety of benefits to your organization or agency, significantly speeding up asset tracking and response to unexpected failures or maintenance requests. Some of the benefits offered by asset management include:
- Enhance asset visibility: Having detailed records of government assets is key to delivering quality public services. Not having access to all assets results in inefficient asset use and allocation. With an asset management solution, you can keep track of your assets, know their location and determine custody at all times. You can optimize asset performance and identify assets that need attention to schedule timely maintenance. By viewing all your assets, you can better manage your asset spend and usage, including inventory utilization. This can speed up your asset management workflow.
- Forecast asset demand: An important part of government asset management includes identifying asset and inventory demand trends at the organizational and departmental levels. Every government organization relies on detailed records of its assets to analyze the amount required for smooth operations in the future. Without considering future needs, your organization may not be able to respond to emergencies, such as when additional garbage trucks are needed to help with an ongoing county cleanup project. Modern asset management systems include an asset register that allows you to strategically plan for the future based on statistics and derive forecast numbers based on past trends combined with new project needs.
- Depreciation management: Depreciation is an important part of asset management. Government assets can be subject to rapid wear and tear due to the nature and amount of work they must perform. With government asset management solutions, you can track the useful life of your assets from the date of purchase and see which assets are nearing the end of their useful life and need to be replaced. Depreciation can also be recorded in groups, and you can select the desired depreciation method based on the nature of the asset to improve efficiency.
What are the challenges in carrying out government asset management?
Government resources are used to improve public facilities and perform administrative tasks, such as managing municipalities and improving infrastructure. These tasks require time, effort, and most importantly, well-maintained assets. However, government organizations may face some challenges when managing assets:
1. Reliance on inefficient tracking systems
Recording asset data using slow, outdated tracking solutions can be time-consuming and expensive. Relying on systems like spreadsheets and ERP to store complex data sets can bring challenges such as human error, lack of collaboration between departments, inability to update every asset, and more. Some government organizations may not be as tech-savvy, and these methods can waste a lot of time as paper records or complex spreadsheets must be scrutinized to find relevant asset information.
Asset management solutions are important for these scenarios as it automates the management process. You can create fields of your choice to enter important asset information, which also helps in monitoring your assets. Because government assets are spread across multiple locations, you can record assets based on location. They are also relocated as often as needed, so you can easily change the location of your assets in a government asset management solution. This improves the tracking process and you can easily avoid accumulating ghost assets.
2. Slow regulatory compliance
Government-run agencies must adhere to certain standards when managing their resources. Guidelines need to be followed and records maintained to meet regulatory requirements. Sometimes these agencies fail to consider compliance and insurance policies when dealing with high-value assets. Failure to implement these policies can result in poor asset maintenance and heavy fines, draining meager government funds and leading to workplace accidents.
An efficient asset management solution will make it easier for you to comply with established regulations and ensure that maintenance checklists are followed when handling assets. Inventories can also be attached with each new set of assets recorded in the asset register. By better understanding your organization’s physical assets, you can easily monitor and maintain them by adhering to government-provided security protocols.
3. Low operational efficiency
Government organizations realize that achieving high operational efficiency means delivering high-quality public services while reducing waste and materials. It is possible that some government organizations are underfunded and lack resources as others receive more attention. This deprives them of the opportunity to invest in better management of their physical assets and replace or maintain them on time. In this way, some assets are underutilized compared to those that are frequently used – creating a gap in their use and maintenance.
One fundamental way to achieve operational efficiency is to standardize practices for using asset management tools. Such tools help reduce duplicate assets, overuse of frequently used assets, difficulty tracking maintenance plans, etc. Your organization understands exactly the monetary investment of its assets so that funds can be spent appropriately. The possibility of calculation errors is also reduced. One of the organizational KPIs might be improving asset efficiency, which can be measured by simply using statistical metrics from asset management tools.
4. Unable to track inventory
The procurement process for government organizations is more cumbersome than private procurement due to the logistical complexities involved. There are multiple government suppliers involved and all suppliers need to be accounted for in order to accurately record the costs incurred. There is a lack of metrics for analyzing inventory management and whether inventory-related goals (such as inventory turns) are being met. These metrics were not carefully applied across the organization, resulting in a lack of coordination in handling and tracking inventory.
Asset management solutions allow you to better manage your inventory by keeping statistical records of all purchased and consumed inventory. According to Data Bridge Market Research, the inventory management software market is likely to reach $2.56 billion by 2029, growing at a compound annual growth rate of 6.62%. Through precise asset management, government organizations can significantly reduce costs, make better use of funds, and achieve goals better and faster.
5. Theft and misplaced assets
Assets are shared between government organizations, which sometimes maintain paper asset registers, which increases the likelihood of asset theft. Government asset data is confidential and sensitive, but is also at risk of theft due to weak security systems. This places a huge financial burden on the organization as new replacement equipment must be procured. Likewise, important government data is at risk if hackers are able to breach systems and leak information such as usernames, passwords, personal details and more from government authorities.
However, with the help of an asset tracking system, these risks can be easily avoided. Asset details can be tracked along with the assets so they never disappear. With QR codes and barcodes, you can always know the location, identification details and custody of your assets, increasing security. As long as this information is available to the executive and management levels, assets cannot be misused because the custodian can be held accountable.
How can government asset management help save costs?
Although government organizations face some challenges in managing assets, the process can be streamlined through improved technology. Important government resources can be better allocated, while costs can be significantly reduced. Inefficiencies in these processes can lead to delays in achieving goals and create obstacles for government organizations to deliver quality services. By centralizing asset and device information, multiple authorized users can access accounts, improving the asset management process. Overall, the new process improves the ability of government agencies to serve the community while maximizing the use of available resources.
About EZOfficeInventory
EZOfficeInventory is a leading asset tracking software. It allows you to track, maintain and report on your inventory anytime, anywhere. We offer a 15-day free trial – no credit card required!