CMMS Maintenance Care Blog

    Asset Tracking Software: Be Prepared for Spikes in Operational Costs

    Posted by Susan Fowler on Wed, Dec 17, 2014 @ 10:00 AM

    It takes a lot to run a maintenance shop. There is planning, budgeting, hiring, assigning work, keeping up with inventory, and that's just a fraction of the work that has to be done in order to do your job successfully. One thing that almost always affects your business is spikes in operational costs.

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    If you work at a maintenance shop that handles seasonal work then you definitely know how the costs can vary. For instance, a Department of Transportation may experience a particularly harsh winter and have to spend more on salt for the highway or a resort maintenance shop typically has to spend more on operational costs with their swimming pools during the summer. Other reasons for spikes in operational costs can be due to the cost of your materials becoming more expensive. It doesn't matter what kind of maintenance shop you run, there can always be spikes in operational costs and the secret is knowing how to prepare for them.

     

    Budgeting 

    One way to budget for these rises in expenses is to have enough set aside to use in cases where you have a surprise expense. However, that is not always possible so you have to find other ways to ensure that your costs don't exceed your operating budget. One way is to implement Asset Tracking Software. While this software doesn't specifically showcase your costs as far as expenses to run your business, it does allow you to utilize it in other areas which are beneficial as well.

     

    Historical Data

    An example is that you can place all of your equipment into the software program and it allows you to predict when the equipment may be no longer functional. How this works is based on repairs, warranty information, initial cost, etc. A good asset management software lets you add your equipment and fill out any areas of data that you need such as the make, model, year bought, warranty information, etc. Then as repairs or downtime is notated, the asset lifestyle section shows you an idea of the value life expectancy. This allows you to prepare for a spike in operational costs due to equipment malfunction or replacement costs.

     

    Also Read: Help In Predicting Breakdowns

     

    No matter what you do, you can't always prepare yourself for emergencies or situations that cause your costs to rise but you can at least try to get a jump start on handling it when it occurs.

     

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    Tags: asset management solutions, asset tracking software, asset management software