Asset Inventory Management | Asset Evaluation | Spares Optimisation
Asset inventory management is the way the organisation motors the assets it owns to track and analyse issues such as physical location, maintenance requirements, depreciation, performance, and eventual disposal of the asset.
Critical Spares Analysis process employs a minimum total cost approach. The total cost defined as the risked cost of running out plus the cost of holding a stock of spare parts/materials. By having a clearer view of inventory and procurement, we can employ a maintenance strategy that will get the most return on investment. Critical challenges of inventory management include:
- Managing Shelf Lives and storage requirements
- Personal safety requirements
- Vendor Managed Inventory (VMI) and Consignment
- Obsolescence management
- Movable and Immovable asset inventory management
Verification is defined as “An inquiry into the value, ownership, title, existence, possession, and presence of any charge on the assets.” Physical verification of assets is an important aspect of auditing and can be seen as doing a ‘stock-take’. Without the verification of assets, an audit is incomplete. Auditing is done at the end of every financial year; it helps in calculating the worth value of an organisation. Therefore, it is a critical part of the business.