Key Differences Between Asset Tracking and Asset Management
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Once in a while, we got calls from companies looking for an “asset tracking solution.” But as they shared the problems they want to solve and what they need from the solution, they were actually looking for “asset management solution”. That explained why they were not sold on the “asset tracking solutions” presented to them before they called us.
For this blog, we have written many times on the differences between “asset tracking solution” and “asset management solution”. Based on some recent dialogues with prospective buyers of “asset management solutions”, I thought it might be helpful to refresh our perspectives.
By definition, Asset Management solutions are to manage the financial, physical, and contractual information of assets throughout the life cycle. Asset Tracking solutions only manage a portion of the information in the life cycle.
In terms of functionality and features, among the many differences, the key things that asset management solutions should provide, which asset tracking solutions don’t offer:
- History of assets, including costs, chain of custody, maintenance records, disposal information. The information should be comprehensive, easy to view in one screen, or one report. It shouldn’t require any manual processing.
- Reports. Users should easily generate asset reports by selecting the asset fields, criteria or characteristics of assets. Users should also have access to some standard reports that are used commonly to manage assets, such as: assets needing audits, assets by purchase order, assets purchased by grant year, asset history reports.
- Key performance metrics. The asset management solution should allow users to configure key performance metrics based on the information in the asset database, set performance goals on these metrics and have the system alert them if risks in asset performance are present. These key performance metrics are also called “business intelligence” sometimes.
These three key differences should help prospective buyers determine whether they need asset management or asset tracking solutions. If you have any questions, you can always give us a call at 1-866-845-2416.