Procurement continues to search for ways to control spend. According to a recent Deloitte survey, this was a key business objective for 78% of procurement leaders.
If you’re like most organisations, finding ways to get your spend under management appears at the top of your priority list time after time.
While automating procurement takes you a long way in this journey, the next step toward cost reduction and increasing spend under management is utilising an Asset Management tool as a part of your procurement process to increase visibility over how money is being spent on assets.
What’s the Actual Cost of an Asset?
Life Cycle Cost (or LCC) includes all the costs associated with the lifetime of an asset. This includes the price of getting, using, maintaining, and disposing an asset.
Sure, the first initial purchase might seem like the biggest hit, but you’ve got to take into consideration the cost the rest of its life looks like after that first transaction is done.
It’s like adopting a dog. The adoption fee is just the start because soon you’ll be buying food, treats, bedazzled collars, toys, and hiring dog-walkers and paying vet bills to keep Fido fit and happy. With an asset the cost of operations, maintenance, eventual disposal, and environmental impact are all wrapped into that LCC.
Tracking the LCC also helps you buy smarter in the future, since you have total cost of ownership figures to compare when shopping for new assets.
Track Assets with a Management Tool
Using an asset management tool can help you organize and keep track of your assets’ status, so you’re not stuck with ghost or zombie assets. It’s an important step in getting the most out of your e-procurement solution. With it, you can:
Centralize all your data
Properly manage preventative maintenance
Accurately plan for maintenance tune-ups
Analyze asset information for more informed decisions
An asset management tool gives you the ability to keep all your asset information in one location, not spread out across multiple programs or tools. With it, you can easily access any information relevant to your assets (warranty info, serial numbers, etc.).
Imagine it—all your assets organised in one location, leading to cost savings, process optimisation, and time saved for all employees involved.
Basware Asset Manager
Basware Asset Manager streamlines the tracking and management of an asset by integrating the e-procurement process automatically. This way, critical data is directly pulled from the e-procurement process, meaning you won’t miss anything that comes through. Basware Asset Manager also helps you:
Keep a thorough audit trail of your actions,
Gain more visibility into all your assets,
Increase accountability and decrease risk of theft through asset assignment,
Track warranties and service contracts automatically, and
Electronically communicate with vendors through the built-in vendor portal.
With an asset management tool in your arsenal, you’ll unlock another level of spend management control and ultimately contribute to a stronger bottom line for your business. You’ll gain further visibility of your assets, your records, and most importantly your spend.
Ready to Learn More?
To learn more about Basware Asset Manager, read our factsheet for oil and gas companies. Questions? Reach out! We’re here to help.